The most incredible thing you realize from Carmen Segarra’s account of her brief stint at the Fed, is that when push came to shove and non-compliance issues were revealed, her bosses had no backbone whatsoever and in fact scrambled to protect the banks and coverup their malfeasance.
Incredibly, this was still business as usual just a couple of years after the banks destroyed the global economy, ripped apart the rule of law, and demanded and received trillions in taxpayer backstops and bailouts.
So were Carmen’s efforts all for naught? Thanks to her secretly recording over 46 hours worth of conversations, it’s possible that her whistleblowing may ultimately bear some real fruit.
In the near-term, the most interesting angle is whether or not it will affect the fate of the “Audit the Fed” bill in the U.S. Senate.
Elizabeth Warren has called for congressional hearings into allegations that the Federal Reserve Bank of New York has been too deferential to the firms it regulates in light of the Segarra revelations.