Saturday, September 27, 2014
Time For Caution! Close Relationship Between Feds and Banks
(Yahoo.com -By Jonathan Spicer and Emily Stephenson, September 27, 2014 ). "When regulators care more about protecting big banks from accountability than they do about protecting the American people from risky and illegal behavior on Wall Street, it threatens our whole economy," Warren (Elizabeth Warren - Democrat on the Senate Banking Committee) said in an emailed statement. "Congress must hold oversight hearings on the disturbing issues raised by today's whistleblower report when it returns in November."
Brown, in an email, said: "For too long, too many financial regulators have been too cozy towards the very industry that they are meant to police."
Carmen Segarra, a former New York Fed bank examiner who brought a wrongful termination lawsuit against her former employer, recorded the conversations and provided them to the investigative news outlet ProPublica and the public radio show "This American Life" to illustrate what she saw as an inappropriately close relationship between regulator and bank.
Segarra was fired after nearly seven months at the New York Fed as a so-called embedded supervisor at Goldman. She later sued the branch of the U.S. central bank for $7 million but the suit was dismissed in April for failing to state a claim that merited whistleblower protection, a decision she is appealing.
"The New York Fed categorically rejects the allegations being made about the integrity of its supervision of financial institutions," it said in a statement on its website.
On Friday, Goldman tightened rules on investments its bankers can make in individual stocks and bonds, a company spokesman told Reuters.
A source familiar with the situation said the bank's new conflict-of-interest rules on Friday were in the works for some time and were unrelated to the Segarra case.
Asked about the possibility of hearings, both the New York Fed and Goldman Sachs declined to comment.
In one conversation said to be among Fed examiners following a meeting with Goldman officials, one participant appeared concerned about pushing the bank too hard for details on the Santander deal.
(Yahoo.com). London (AFP) - Six banks may face record fines in Britain as they begin talks about a settlement following an investigation into allegations of rigging currency markets, the Financial Times reported on Friday. Barclays, Citigroup, HSBC, JPMorgan Chase, the Royal Bank of Scotland and UBS have begun meetings with the Financial Conduct Authority (FCA) to agree a settlement, and fines may amount to over one billion pounds ($1.6 billion, 1.3 billion euros), the FT reported, citing sources close to the situation.