Whistleblower exposes Federal Reserve collusion with Goldman Sachs

[Basil II the B.S]

and inevitably loses her job.

In early 2012, Segarra was assigned to regulate Goldman Sachs, and so was installed inside Goldman. (The people who regulate banks for the Fed are physically stationed inside the banks.)
The job right from the start seems to have been different from what she had imagined: In meetings, Fed employees would defer to the Goldman people; if one of the Goldman people said something revealing or even alarming, the other Fed employees in the meeting would either ignore or downplay it. For instance, in one meeting a Goldman employee expressed the view that "once clients are wealthy enough certain consumer laws don't apply to them." After that meeting, Segarra turned to a fellow Fed regulator and said how surprised she was by that statement -- to which the regulator replied, "You didn't hear that."

This sort of thing occurred often enough -- Fed regulators denying what had been said in meetings, Fed managers asking her to alter minutes of meetings after the fact -- that Segarra decided she needed to record what actually had been said. So she went to the Spy Store and bought a tiny tape recorder, then began to record her meetings at Goldman Sachs, until she was fired.

(How Segarra got herself fired by the Fed is interesting. In 2012, Goldman was rebuked by a Delaware judge for its behavior during a corporate acquisition. Goldman had advised one energy company, El Paso Corp., as it sold itself to another energy company, Kinder Morgan, in which Goldman actually owned a $4 billion stake, and a Goldman banker had a big personal investment. The incident forced the Fed to ask Goldman to see its conflict of interest policy. It turned out that Goldman had no conflict of interest policy -- but when Segarra insisted on saying as much in her report, her bosses tried to get her to change her report. Under pressure, she finally agreed to change the language in her report, but she couldn't resist telling her boss that she wouldn't be changing her mind. Shortly after that encounter, she was fired.)

http://www.bloombergview.com/article...an-sachs-tapes
Obviously nothing will follow this. As Goldman Sachs is the n.1 funder of Obama campaigns, it's safe to say they bribed their way into the system very well, to the point that they have become the system and the average American is too retarded to care.

Still can't wait until the 46 hours of tapes are released, just to have an idea of what kind of crap is going on behind the scenes.

[Lugotorix]

and inevitably loses her job.


http://www.bloombergview.com/article...an-sachs-tapes
Obviously nothing will follow this. As Goldman Sachs is the n.1 funder of Obama campaigns, it's safe to say they bribed their way into the system very well, to the point that they have become the system and the average American is too retarded to care.

Still can't wait until the 46 hours of tapes are released, just to have an idea of what kind of crap is going on behind the scenes.

Ahaha. I stay away from the pit for good reason, but I also can't wait for the hilarity, the mockery of morality, that no doubt exists in these tapes.

[Condottiere 40K]

Plays to my expectations, though would be surprised if this isn't more widespread, and why it didn't come up earlier.

[justicar5]

and inevitably loses her job.


http://www.bloombergview.com/article...an-sachs-tapes
Obviously nothing will follow this. As Goldman Sachs is the n.1 funder of Obama campaigns, it's safe to say they bribed their way into the system very well, to the point that they have become the system and the average American is too retarded to care.

Still can't wait until the 46 hours of tapes are released, just to have an idea of what kind of crap is going on behind the scenes.

don't forget they also bank roll the republicans. Equal opportunities corruption..but hey corps are people so can donate to campaigns...yea......

[Basil II the B.S]

don't forget they also bank roll the republicans. Equal opportunities corruption..but hey corps are people so can donate to campaigns...yea......

There's pretty much no difference between Reps and Dems in this.
Except Ron Paul who's being campaigning alone to audit the Fed for years, unlistened.

[Roma_Victrix]

the average American is too retarded to care.

And therein lies the depressing fact that will most likely allow most of this to be ignored in the mainstream media, i.e. the big basic cable news channels like Fox and MSNBC. They're also in bed with the same people and sponsors. Struggling newspapers are being bought up as well.

As for the corrosive and corrupting influence of money in US politics, there is a campaign going on from the state senate level to challenge the do-nothing federal government on that issue and write a new amendment to the US Constitution via state conventions. Every generation of Americans except ours has added an amendment. It's about damn time. The state senates of California and Vermont have already held their conventions and agreed that Citizens United should be overturned with a new amendment to the US Constitution.

http://www.sfgate.com/politics/artic...er-5579322.php

http://www.vox.com/2014/7/5/5868371/...limit-money-in

http://www.thenewamerican.com/usnews...e-constitution

[Condottiere 40K]

As I recall, the Koch bothers did have/may have an ongoing campaign to influence elections on the county/state level, so money politics does go into the grassroots.

The Athenians did select some of their legislators by lot from a carefully vetted pool of citizens.

[chilon]

As I recall, the Koch bothers did have/may have an ongoing campaign to influence elections on the county/state level, so money politics does go into the grassroots.

The Tea Party brought to you by the Koch Brothers c.2002


------


For the OP, Goldman has operated basically a turnstyle between their execs and the highest US government appointment positions for a long time.

[Basil II the B.S]

The Koch brothers generally fund libertarian or conservative think thanks to promote their ideas, which often have little to do with libertarianism and more about their own business.

[Napoleonic Bonapartism]

The only thing that surprises me in this story is how blatantly Goldman Sachs (and the Federal Reserve) conducted the whole thing - I would have imagined more subtlety. Or perhaps that's just too many movies talking...

[Roma_Victrix]

The only thing that surprises me in this story is how blatantly Goldman Sachs (and the Federal Reserve) conducted the whole thing - I would have imagined more subtlety. Or perhaps that's just too many movies talking...

In reality they are truly this brazen and upfront with their snotty, elitist, above-the-law attitude. They are a despicable bunch of cretins and worse than that, they're criminals. Yet even worse than that, they're criminals who are aided and abetted by the Fed! I'm so very glad to see our government is looking out for us, we the little people. I say we the little people start flexing some collective muscle on this.

[Napoleonic Bonapartism]

In reality they are truly this brazen and upfront with their snotty, elitist, above-the-law attitude.

By the sounds of this they are the law... (shudder).

They are a despicable bunch of cretins and worse than that, they're criminals. Yet even worse than that, they're criminals who are aided and abetted by the Fed!

Here, here!

I'm so very glad to see our government is looking out for us, we the little people.

The sad thing is that there are few times when they are, see this report:
Summary of Conclusions:
http://www.bbc.co.uk/news/blogs-echochambers-27074746
Full Report:
http://www.princeton.edu/~mgilens/Gilens%20homepage%20materials/Gilens%20and%20Page/Gilens%20and%20Page%202014-Testing%20Theories%203-7-14.pdf

I say we the little people start flexing some collective muscle on this.

If only we could... Sorry for the pessimism.

[conon394]

to the point that they have become the system and the average American is too retarded to care.

Well not too restarted just too overwhelmed. Quick name me all US regulatory agencies? Second As a whole the country has largely bought into the cut taxes mantra which means fewer regulators, less well funded regulators and more industry self regulation. The fact is most of the people who work for the government in this capacity are well educated and accomplished and could double triple or more their money in industry. Patriotism and desire to do right only goes so far...the moral hazard in regulation (Regulatory capture) is a well know feature and it is up to the government to work hard and be designed to avoid that. Also the simple fact almost all markets in the US (banking certainly) are not purely competitive but some type of oligopoly making some monopoly rents and thus an interest to maintain that to collude and to spend it to those effects and given the income Financial sector that needs to taken very seriously

Fitting basic economic theory back into secondary education would be useful.

So is the reference to Athens Condottiere 40K. It may never have elaborated a theory of Regulatory Capture or the Iron Law of Oligarchy but it new damn well they existed and worked hard - very hard - to counter them. In the US we have forgotten those points, backed away from anti trust laws, made cooperate money equal to speech, cut back on regulators and their expectations for a stable career and allowed them to become to close to those they watch over and in a larger sense ever since the cold war have fostered a system of government opaqueness and lack of transparency that is antithetical to democracy.

In reality they are truly this brazen and upfront with their snotty, elitist, above-the-law attitude. They are a despicable bunch of cretins and worse than that, they're criminals. Yet even worse than that, they're criminals who are aided and abetted by the Fed! I'm so very glad to see our government is looking out for us, we the little people. I say we the little people start flexing some collective muscle on this.

Like I said above when the little people stop being enticed by tax cuts that largely don't help them maybe you can a government where you only get the few best and brightest who are really committed and enough guards to watch the guards.


edit:

That's the thing, they are not even trying to hide what they are doing, all while public is just too dumb to pay attention.

'dumb' is pompous as pompous as the ass hats at Goldman. Do have three 3 kids and 2 jobs how much time do suppose you have to even care. Just curious even if person cares about anything ever tried to be in voluntary organization w/o pay to change or do anything - simple fact is most people don't have the time or desire or energy to be zealots

[Basil II the B.S]

Well not too restarted just too overwhelmed. Quick name me all US regulatory agencies? Second As a whole the country has largely bought into the cut taxes mantra which means fewer regulators, less well funded regulators and more industry self regulation. The fact is most of the people who work for the government in this capacity are well educated and accomplished and could double triple or more their money in industry. Patriotism and desire to do right only goes so far...the moral hazard in regulation (Regulatory capture) is a well know feature and it is up to the government to work hard and be designed to avoid that. Also the simple fact almost all markets in the US (banking certainly) are not purely competitive but some type of oligopoly making some monopoly rents and thus an interest to maintain that to collude and to spend it to those effects and given the income Financial sector that needs to taken very seriously

Fitting basic economic theory back into secondary education would be useful.

So is the reference to Athens Condottiere 40K. It may never have elaborated a theory of Regulatory Capture or the Iron Law of Oligarchy but it new damn well they existed and worked hard - very hard - to counter them. In the US we have forgotten those points, backed away from anti trust laws, made cooperate money equal to speech, cut back on regulators and their expectations for a stable career and allowed them to become to close to those they watch over and in a larger sense ever since the cold war have fostered a system of government opaqueness and lack of transparency that is antithetical to democracy.

I agree that lack of education on the topic contributes to the lack of understanding of how serious the issue is, however media contribute to this.
When the average Joe looks into politics, he's bombarded by retarded birth certificate hunts or similar idiocies, he'll never be able to understand what is actually going on.
It's not just lack of education, it's heavy and well organized manipulation of information that in the end translates to actual misinformation.

And this is not going away until the system can't sustain its corruption anymore and collapses by itself.

Apart from the isolated cries of Crony Capitalism! and even The Illuminati! in the USA, from what I've heard myself. In Europe its just people shouting about Brussels and Immigrants. Oh, and The Establishment.

Way to mix reality and conspiracy theories a bit too much.

[Napoleonic Bonapartism]

Way to mix reality and conspiracy theories a bit too much.

Not my terms, simply those I've noticed - they all have the same basic ring to them. But granted some are more grounded in the real world then others. Regardless it is the sentiment that I find interesting - not the way it is presented.

[Heathen Hammer]

The only thing that surprises me in this story is how blatantly Goldman Sachs (and the Federal Reserve) conducted the whole thing - I would have imagined more subtlety. Or perhaps that's just too many movies talking...

That's the thing, they are not even trying to hide what they are doing, all while public is just too dumb to pay attention.

[Napoleonic Bonapartism]

That's the thing, they are not even trying to hide what they are doing, all while public is just too dumb to pay attention.

Apart from the isolated cries of Crony Capitalism! and even The Illuminati! in the USA, from what I've heard myself. In Europe its just people shouting about Brussels and Immigrants. Oh, and The Establishment.

[Heathen Hammer]

'dumb' is pompous as pompous as the ass hats at Goldman. Do have three 3 kids and 2 jobs how much time do suppose you have to even care. Just curious even if person cares about anything ever tried to be in voluntary organization w/o pay to change or do anything - simple fact is most people don't have the time or desire or energy to be zealots

If people do not concern themselves with how wrong is the current situation and why it is wrong, then they kinda deserve it. They should be asking why do they need 2 jobs (often for each spouse) to maintain a family with more then one kid.

Apart from the isolated cries of Crony Capitalism! and even The Illuminati! in the USA, from what I've heard myself. In Europe its just people shouting about Brussels and Immigrants. Oh, and The Establishment.

But the financial elites are the root of the problem. All those international corporations have been run by same families for centuries now. Dismissing that as "conspiracy theory" just shows one's inability to accept the quite obvious reality: most of "western' governments are in corporate pocket and act in the interests of these corporations, rather that of their own nations. That goes for countries like Russia as well.

[Caligula's_Horse]

Not a surprising news story, sadly.
That's what happens when the political system is set up in a way that getting elected requires massive private sector funding, and politicians and public servants more concerned with cushy private sector positions to retire to then doing their jobs. Branches of government go up for sale.

Worse still, the system is so well entrenched and bogged down with conservatism (and not the political kind either) and bureaucratic inertia that this incident is quite unlikely to change anything in the long run, other then perhaps causing all those involved to be more careful they aren't recorded.
The only way to fix it involves taking an axe to the whole system and building it up from scratch. Problem is, the people responsible for doing it are held captive by that same system...

[Condottiere 40K]

If true, they'll pay a couple of billions in fines, since Washington categorizes these institutions as having too much influence on the economy and therefore, too big to fail.