Fed whistleblower and regulatory capture (Story in BoingBoing)

Summary

The story: Fed whistleblower secretly recorded 46 hours of regulatory capture inside Goldman Sachs

From the piece:

The Fed had vowed to reform this culture, and Segarra was supposed to be part of that mission. But once she reported for work at the Fed department at Goldman Sachs (Fed regulators actually work at desks inside the banks they’re regulating), she discovered a culture rotten with cowardice and capture, where her boss’s idea of a really stern rebuke for lying in official filings was to mildly mention that there appeared to be some irregularities in the compliance regime, then trailing off ineffectually.

We know this because of the recordings, which were edited into a documentary by This American Life that aired yesterday. It’s an absolutely riveting and essential hour of audio (MP3), and the accompanying package by Pro Publica is likewise essential reading.

Congress and/or President Obama could do something about this, not overnight, but given some prioritization. The problem of course is that they are bought as well. Some folks need to go to jail, but in any case we need electoral reform so that we can actually have a government willing to take on this sort of corruption.

The story: Fed whistleblower secretly recorded 46 hours of regulatory capture inside Goldman Sachs

From the piece:

The Fed had vowed to reform this culture, and Segarra was supposed to be part of that mission. But once she reported for work at the Fed department at Goldman Sachs (Fed regulators actually work at desks inside the banks they’re regulating), she discovered a culture rotten with cowardice and capture, where her boss’s idea of a really stern rebuke for lying in official filings was to mildly mention that there appeared to be some irregularities in the compliance regime, then trailing off ineffectually.

We know this because of the recordings, which were edited into a documentary by This American Life that aired yesterday. It’s an absolutely riveting and essential hour of audio (MP3), and the accompanying package by Pro Publica is likewise essential reading.

Congress and/or President Obama could do something about this, not overnight, but given some prioritization. The problem of course is that they are bought as well. Some folks need to go to jail, but in any case we need electoral reform so that we can actually have a government willing to take on this sort of corruption.

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