A former Federal Reserve employee, who was fired recently for declining to roll over, has provided secret audio tapes that have the recordings into meetings involving officials from the Federal Reserve Bank of New York and Goldman Sachs.
41-year-old Carmen Segarra made the recordings in 2012. She was holding the designation of a New York Fed bank examiner at that time.
According to Segarra, she recorded the conversation during the meeting as she felt that the Fed was going very liberal with the powerful investment bank having good connectivity. Segarra was later fired.
The former federal employee recorded 46 hours of meetings with the help of a small audio recorder that she carried on her key chain.
The recordings were provided to investigative reporter Jake Bernstein from ProPublica and to the public radio program ‘This American Life’.
In the audio, the officials are heard considering how to oversee Goldman Sachs and specifically discussing a financial transaction that is described as “legal but shady” by one of the official.
On hearing the tape, Bernstein told NPR’s Steve Inskeep that the recordings have raised concern as they reflect that the regulators may be too cozy with the banks they oversee.
Bernstein further said, “These are people who work inside the banks. They see these people every day, and they need to obtain the information from these banks, and it’s easier to obtain the information if you’re friendly and if you have a good relationship, but sometimes that can slide to deference.”
Meanwhile, Goldman Sachs said that the concerns raised in Segarra’s audio tape were baseless.