Federal Reserve Covers Up Banker Crimes

•Whistleblower punished for exposing truth about Federal Reserve perfidy.

By Keith Johnson

From The Pentagon Papers to the National Security Agency spying scandal, the past half-century has watched Americans cheer as several of their fellow countrymen have stepped forward to blow the lid off the rampant criminality and corruption that exists at the highest levels of government, industry and finance. Recently, former bank examiner Carmen M. Segarra was added to this list of courageous whistleblowers for exposing how the privately owned and controlled Federal Reserve covers up criminal practices of the world’s wealthiest elites.

In 2011, Ms. Segarra was hired by the Federal Reserve Bank of New York. As part of a new team of bank examiners, her job was to monitor one of several so-called too-big-to-fail banks and help oversee implementation of strict new regulations that came as the result of the Dodd-Frank Wall Street regulatory overhaul, which passed Congress and was signed into law in 2010.

Ms. Segarra was assigned to Goldman Sachs, the Wall Street giant once described as “a great vampire squid wrapped around the face of humanity” by Rolling Stone magazine writer Matt Taibbi.




 
 
 

Under the new rules, investment banking behemoths were expected to address conflicts of interest in how their dealmakers handled clients. The examiners concluded that Goldman’s policies fell far short of the new legal requirements. However, once Ms. Segarra’s revelations were brought to the attention of the New York Fed, rather than being rewarded she was taken aside and pressured to change her position.

“They wanted me to falsify my findings,” Ms. Segarra told the news website “ProPublica,” “and when I wouldn’t, they fired me.”

Ms. Segarra’s refusal to play the game according to the Fed’s rules brought her career to an abrupt end within seven short months. During that time, however, the tenacious bank examiner managed to secretly record 46 hours of conversations held inside the New York Fed, providing an unprecedented glimpse into the inner workings of one of the nation’s most unaccountable entities.




During a recent interview with “ProPublica Segarra said, “There are laws, rules and regulations already in the books that, if regulators enforced them properly, would go a long way toward fixing this problem.”

Of course, readers of AMERICAN FREE PRESS know that the only real way to fix this problem is to abolish the Federal Reserve altogether. Hopefully, Ms. Segarra will also come to this realization and learn that transparency will not improve a financial system that was never designed to work for the benefit of the American people.

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Keith Johnson is a writer based in Tennessee.