A Vivid Glimpse of the Fed's Cozy Relationship With Goldman

“The Ray Rice video for the financial sector has arrived,” Michael Lewis declared in a column on Bloomberg View this morning. He’s referring to new recordings reported by ProPublica’s Jake Bernstein that look at how bank supervisors soft-pedaled their oversight of Goldman Sachs. The audio recordings were made by Carmen Segarra, a former examiner with the New York Fed who was detailed to the team supervising Goldman in 2011 and 2012. The story, which is also the subject of a full episode of This American Life that airs today, provides an unprecedented look into how bank examiners—the front lines in ensuring the safety and soundness of the financial system—at times defer to the banks they are supposed to oversee.

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