"This American Life" did a program on Friday on the information obtained by Carmen Segarra from her time as a New York Fed bank examiner in 2012, where she investigated Goldman Sachs and began to notice the Federal Reserve Bank of New York was unwilling to support her allegation that the bank was missing policies regarding conflicts of interest. Now, Democratic Senator Elizabeth Warren of Massachusetts is calling for a congressional hearing to discuss corruption in the Federal Reserve Bank. She has already received support from Democratic Senator Sherrod Brown of Ohio."These allegations deserve a full and thorough investigation, and American taxpayers deserve regulators who will fight each day on their behalf," Brown said in a statement.
Segarra was fired from her job as a bank examiner after expressing these allegations, and she secretly recorded hours of conversations between her and her bosses that show they were fighting her on the validity of her claims. She believes the Fed has been captured by the interests of Goldman Sachs and wants to see the Fed do its job as a bank regulator. The Fed claims they did not fire Segarra because of her allegations but because of poor work performance.
"Congress must hold oversight hearings on the disturbing issues raised by today's whistleblower report when it returns in November, because it's our job to make sure our financial regulators are doing their jobs," Warren said in a statement. She believes the Fed not properly regulating banks "threatens our entire economy."