Throughout the day, many students and readers of this blog have been sending me the link to the Michael Lewis’s story about the secret Goldman Sachs tapes. Basically, ProPublica reporter Jake Bernstein has obtained 46 hours of tape recordings, made secretly by Carmen Segarra, a bank examiner for the Federal Reserve in New York, of conversations within the Fed and between the Fed and Goldman Sachs.
Bernstein’s report will be aired later today on This American Life.
Here’s the transcript [pdf] of the report.
Here’s a link to the story about Segarra’s being fired in 2012, after she complained that her Fed bosses asked her to change conclusions concerning Goldman’s evident violation of conflict-of-interest standards. (Segarra’s wrongful termination lawsuit was dismissed in April of this year.)
As Lewis reports,
1. You sort of knew that the regulators were more or less controlled by the banks. Now you know.
2. The only reason you know is that one woman, Carmen Segarra, has been brave enough to fight the system. She has paid a great price to inform us all of the obvious. She has lost her job, undermined her career, and will no doubt also endure a lifetime of lawsuits and slander.