AND Magazine Menu

Willful Blindness

Claude Morton
Column Editor

There is indeed tremendous collusion occurring between regulators and Wall Street.



How the Federal Reserve Loves Looking the Other Way

Carmen Segarra

Former New York Fed examiner Carmen Segarra recorded tapes of her dealings with the institution as she tried to monitor Goldman Sachs. NPR, with Propublica, obtained 46 hours of audio and released a portion of it. Segarra is suing the New York Fed. | Photo: Nabil Rahman | Link | Carmen Segarra, New York Federal Examiner, Goldman Sachs, Lawsuit, Wall Street, Npr,

How the Federal Reserve Loves Looking the Other Way

Claude Morton
Column Editor

170K

Views/Shares

[Comments] Most people have forgotten about Wall Street's actions which led to the biggest financial collapse in this country in over the past 70 years. The 2008 financial collapse led to numerous folks being evicted from their homes, losing their jobs, and creating a new environment of lower-paying jobs. Not to mention the realization that many Wall Street firms were engaged in illegal financial behaviors from laundering drug money to lying to investors, even lying to investors investing on behalf of municipalities.

What was also revealed was the main regulators of Wall Street, the Federal Reserve, knew what was occurring all along, and failed to serve our Republic and allowed a financial meltdown to occur before their willing eyes.

Topple that reality with the government's view that too-big-to-fail institutions are untouchable, as Attorney General Eric Holder admitted to numerous times, leaving these unscrupulous financial institutions with the supreme power to willingly break the law time after time without fear of real consequence; and leaving us citizens defenseless against these financial cartels.

Most of us assume Wall Street is given preferential treatment by the government, and now we are having our assumptions confirmed, our regulatory institutions are indeed allowing this illegal activity to occur knowingly, and continually fail to hold these financial firms to any regulatory compliance.

Enter Carmen Segarra, a former bank examiner at the New York Federal Reserve, she was in charge of making sure Goldman Sachs was in compliance on various business deals. Of course, she found Goldman was not at all in compliance, and when she mentioned this numerous times to various bosses within the Federal Reserve, she was ignored. When ignoring her wouldn't work they just fired her, for what they deemed a rocking of the boat, and her unwillingness to ignore the truth and comply with their internal opinions, and not facts, that Goldman Sachs was in compliance, even though they were not.

Carmen Segarra recently sued the New York Federal Reserve for being wrongfully terminated for essentially doing her job, and the case was predictably thrown out of court, but the case revealed some very troubling evidence. Audio files Carmen secretly recorded of her numerous debates within the Federal Reserve, which revealed that there is indeed tremendous collusion occurring between regulators and Wall Street.

Even to the point of our Federal Reserve knowing damn well financial institutions are not in compliance and are engaging in dangerous investments and shady business deals, which the Federal Reserve is fine looking the other way on. A transcript of Carmen's plight at the New York Federal Reserve (the main regulator of Wall Street) can be found here.

I guess if the government isn't going to prosecute the thieves on Wall Street, and the government isn't going to regulate them either, we can only conclude the government is working for Wall Street, violating the entire reason for their existence, to promote the general welfare of our nation, not that of Wall Street.

Earlier in September, the House of Representatives, voted to approve another Federal Reserve audit, similar to the one that took place after the Financial Crisis. This measure was all but certain to be struck down in the Wall Street captured Senate, but with these new revelations by the Carmer Segarra recordings, perhaps they will have to once again shine a much needed light on the Federal Reserve.

One could only hope, but unfortunately, I am sure it will be struck down, after all, the best way to keep an illegal racket going is by avoiding all transparency, something the Federal Reserve clings to with their corrupted little hands.

We might want to get rid of both Wall Street and this form of governance beholden to Wall Street, if we truly want a prosperous nation, and not one beholden to thieves, and the upcoming midterm elections of 2014 and the 2016 general elections will be a perfect place to start the cleansing. Now if there was only a way to vote on clearing out the Federal Reserve.


Claude Morton

Claude Morton, Column Editor: Claude Morton is an independent contributor, who mostly writes articles on politics, Veganism, philosophy, or local events. Claude has contributed to a variety of print and online outlets including Yahoo!, MovieMaker Magazine, and the Ann Arbor News. From Claude; I’m in the 1%, no, not that 1%. I’m a vegan, indie filmmaker, libertarian socialist, and a pacifist. I champion freedom as much as equality, and love discussing solutions about our country’s biggest dilemmas. ... (more...)