Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

New York Fed Chief Stands Firm Against Charges of Weak Oversight

admin by admin
November 23, 2014
in Uncategorized
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Special Report From ProPublica

by Jake Bernstein, ProPublica.org

For almost two hours Friday, the president of the Federal Reserve Bank of New York defended heated assertions from Democratic senators that his institution is too cozy with big banks to be an effective guardian of the financial system.

At times stammering and flustered, New York Fed President Bill Dudley stood behind the work of his staff and insisted that the nation’s too-big-to-fail banks were safer for it.

The Senate Subcommittee on Financial Institutions and Consumer Protection called the hearing to explore issues of regulatory capture in light of reports by ProPublica and This American Life and other news media that the New York Fed had failed to act aggressively in the face of suspect transactions or questions raised by its examiners.

But Dudley insisted the New York Fed had adopted an array of changes since the 2008 financial crisis, including steps to remedy what a 2009 study said was a culture of deference and unwillingness to hear dissenting views.

Dudley said:

“We should be judged on where the banking industry is today versus where it was six years ago, I think we’ve made a lot of progress. Are we where we want to be? Absolutely not.”

He also pointed to yesterday’s announcement by the Federal Reserve Board that it had launched reviews of its supervisory procedures involving big banks, to be conducted both internally and by the Fed’s inspector general’s office.

No Republican senators attended Friday’s session, leaving Dudley to confront a handful of Democrats who took turns firing off one series of skeptical questions after another.

Chairman Sherrod Brown of Ohio described Dudley’s written testimony as “a sunny description” belied by a lack of public confidence in financial regulators. Sen. Jeff Merkley of Oregon termed Dudley’s defense of the New York Fed “a very glib presentation of everything being wonderful.“

Dudley disagreed that the New York Fed’s role is to police Wall Street, describing it more like that of a “fire warden” to ensure the financial system “does not catch on fire and burn down.” In several sharp exchanges with Massachusetts Sen. Elizabeth Warren, he declined to concede that the New York Fed’s culture contributed to weak oversight.

Warren admonished:

“Is there a cultural problem at the New York Fed? I’m convinced there is. I think the evidence says that there is, You need to fix it Mr. Dudley, or we need to get someone who will.”

Questioning at several points touched on incidents involving Carmen Segarra, a former New York Fed examiner who secretly recorded some 46 hours of meetings while embedded at Goldman Sachs in 2012. Segarra, part of a new wave of specialists hired by the New York Fed after the financial crisis, was fired after seven months on the job.

A week before her dismissal, Segarra’s supervisor tried repeatedly to convince her to change her views on whether Goldman Sachs had a conflicts-of-interest policy. Segarra contends in a lawsuit that she was fired for refusing to budge, an accusation the New York Fed has denied. Her case was dismissed but is on appeal.

Asked about the incident, one that Segarra recorded, Dudley said supervisor Michael Silva and others had concluded that Goldman did, in fact, have a conflicts-of-interest policy but were trying to turn the discussion to whether it was a good one.

Dudley said “this issue was vetted” inside the bank and that the problem was Segarra’s “lack of a willingness to agree” with her supervisors that Goldman did have a policy. Previously the New York Fed has declined to comment on the recordings on grounds that they contain confidential supervisory information.

Segarra was not invited to testify at the hearing but sat in the audience scribbling notes as Dudley and the senators talked about events she had witnessed in her seven-month tenure at the New York Fed. They included deliberations about a transaction involving the Spanish bank, Banco Santander, that also were captured on Segarra’s recordings.

In early 2012, Goldman and Santander arranged a deal to help the Spanish bank achieve capital levels demanded by European regulators. Senators asked whether the Fed should have taken a stronger stance on what Silva, the head Fed supervisor embedded at Goldman, had called a “legal but shady” transaction.

Dudley said the deal was thoroughly reviewed, found to be legal and did not pose a reputational risk to Goldman. Under questioning from Warren, he said he did not know if the New York Fed ever notified European banking authorities but that the Bank of Spain was informed about the deal.

One clause in the deal seemed to require pre-approval by the New York Fed. “The implication that we were somehow approving the transaction is false,” Dudley said. Yet the New York Fed did review other transactions to ensure that Goldman was not making similar claims elsewhere, he said.

Three expert witnesses followed Dudley, including David Beim, a Columbia University professor who led the 2009 investigation into the New York Fed’s regulatory culture.

Beim said the most important thing Congress could do to reduce the odds of regulatory capture – when government watchdogs get too close to the institutions they oversee – is to strengthen revolving door rules. The existing one-year wait required before regulators can work at bank they supervised should be extended to three years, he said.

Beim said Segarra’s experience of feeling pressured by superiors “illustrated in Technicolor” the cultural issues his 2009 study uncovered at the New York Fed. “It does suggest to me … continuing problems,” he said.

ProPublica is a Pulitzer Prize-winning investigative newsroom. Sign up for their newsletter.

>

Previous Post

Infographic of the Day: How Plate Tectonics Helped Carve Tibetan Gorges

Next Post

Handing More Control to Patients Could just be Cost-Cutting in Disguise

Related Posts

Gold Versus Bitcoin, Which Is A Better Investment In 2023?
Econ Intersect News

Gold Versus Bitcoin, Which Is A Better Investment In 2023?

by John Wanguba
March 28, 2023
World Bank Cautions Of 'Lost Decade' In Global Growth Without Drastic Policy Shifts
Business

World Bank Cautions Of ‘Lost Decade’ In Global Growth Without Drastic Policy Shifts

by John Wanguba
March 28, 2023
How Is The Banking Crisis Affecting Ripple’s XRP Crypto?
Economics

How Is The Banking Crisis Affecting Ripple’s XRP Crypto?

by John Wanguba
March 28, 2023
Virgin Orbit Extends Employee Furlough, Funding Talks Ongoing – CEO
Business

Virgin Orbit Extends Employee Furlough, Funding Talks Ongoing – CEO

by John Wanguba
March 28, 2023
Lebron James And Several Other Celebs ‘Effectively Wiped Out’ As Fitness App Tonal Loses 90% Value
Business

Lebron James And Several Other Celebs ‘Effectively Wiped Out’ As Fitness App Tonal Loses 90% Value

by John Wanguba
March 28, 2023
Next Post

Handing More Control to Patients Could just be Cost-Cutting in Disguise

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin adoption Bitcoin market Bitcoin mining blockchain BTC business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe FTX inflation investment market analysis Metaverse mining NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Gold Versus Bitcoin, Which Is A Better Investment In 2023?
  • World Bank Cautions Of ‘Lost Decade’ In Global Growth Without Drastic Policy Shifts
  • How Is The Banking Crisis Affecting Ripple’s XRP Crypto?

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish