If you ranked all of government’s
financial regulators on how they handled Wall Street’s crime wave during
the Great Recession and its aftermath, most of them would wind up tied
for last place. But then just under them would be the New York Federal Reserve.
This is the agency Tim Geithner ran during the Bush Administration. It’s the one thatmissed the housing bubble, bailed out AIG, and made sure all of the mega-banks owed money on credit default swaps got paid out at 100 percent. This is the agency a former employee named Carmen Segarra secretly taped to show how officials there rolled over for Goldman Sachs after finding evidence of potential wrongdoing. It’s the one that learned about JPMorgan Chase’s risky practices in the office that made the catastrophic “London Whale” trade four years before that blew up, and did absolutely nothing to investigate or put a stop to them. It’s the one that got early reports of theLibor scandal , the largest rigging of interest rates in world history (literally, a trader at Barclays Bank told a New York Fed official, “We know that we’re not posting, um, an honest rate.”), and did nothing but write a letter to British regulators, telling them to deal with it.
This is the agency Tim Geithner ran during the Bush Administration. It’s the one thatmissed the housing bubble, bailed out AIG, and made sure all of the mega-banks owed money on credit default swaps got paid out at 100 percent. This is the agency a former employee named Carmen Segarra secretly taped to show how officials there rolled over for Goldman Sachs after finding evidence of potential wrongdoing. It’s the one that learned about JPMorgan Chase’s risky practices in the office that made the catastrophic “London Whale” trade four years before that blew up, and did absolutely nothing to investigate or put a stop to them. It’s the one that got early reports of theLibor scandal , the largest rigging of interest rates in world history (literally, a trader at Barclays Bank told a New York Fed official, “We know that we’re not posting, um, an honest rate.”), and did nothing but write a letter to British regulators, telling them to deal with it.
MORE:
http://www.vice.com/read/after-years-of-incompetence-new-york-bank-regulators-are-losing-power-to-washington-309
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