Senate Hearing Set on Secret Recordings at N.Y. Fed

by Jake Bernstein – A U.S. Senate subcommittee will hold a hearing Nov. 21 on issues of regulatory capture following stories by ProPublica and This American Life about secret recordings made by an examiner at the Federal Reserve Bank of New York. Sen. Tim Johnson, D-S.D., chairman of the Senate Committee on Banking, Housing and Urban Affairs and Sen. Sherrod Brown, D-Ohio, who chairs the panel’s Financial Institutions and Consumer Protection subcommittee, announced the hearing today. Witnesses have not been named. In a statement, Johnson said the ProPublica and This American Life reports “are troubling because they raise new questions about regulators being captured by the financial institutions they regulate.” The examiner, Carmen Segarra, secretly recorded approximately 46 hours of meetings with colleagues at the New York Fed and executives from Goldman Sachs as she examined Goldman’s policies, particularly those relating to conflicts of interest. She was fired after seven months...

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