The Latest Scandal: Goldman, Fed Employees Busted For Illegally Sharing Confidential Information

[FBD]

On the morning of Friday, September 26, in addition to the shocking news of Bill Gross' departure from Pimco, the world was just as shocked, or not as the case was for many, that a former NY Fed staffer, Carmen Segarra, who had been previously fired for suggesting that Goldman Sachs has an undue influence on the NY Fed and gets a preferential treatment (certainly as a result of NY Fed's president Bill Dudley being working previously at Goldman Sachs), had released nearly 50 hours of tapes confirming her allegations: that the NY Fed was nothing but a branch of the bank that controls every central bank. The full details were presented in "How Goldman Controls The New York Fed: 47.5 Hours Of "The Secret Goldman Sachs Tapes" Explain."

Ironically it was on that very day that another recent Goldman hire from the NY Fed - a classic case of, as the NY Times puts it, the "revolving door, the symbolic portal that connects financial regulators to Wall Street" - a 29-year-old former New York Fed regulator named Rohit Bansal, got into hot water after something "shocking" was revealed: he had an inside source at the NY Fed who was providing him with illegal, confidential information on a regular basis (http://www.zerohedge.com/news/2014-11-20/latest-scandal-goldman-ny-fed-employees-busted-colluding-illegally-sharing-confident).

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/11/dudaly.jpg
Here is William Dudley, formerly of Goldman Sachs and president
of the New York Fed, saying "I don’t think anyone should question
our motives." It may have been an order.


for the maybe 2 of you that are interested, story at the link. but its a textbook outline of the revolving door between government and ostensible lobbyist, the regulated regulating the regulator.

[FBD]

:lol:
http://www.newyorkfed.org/newsevents/statements/2014/1119_2014.html#.VG5JwfggriQ.twitter

Statement on New York Fed Supervision
November 19, 2014

As soon as we learned that Goldman Sachs suspected one of its employees may have inappropriately obtained confidential supervisory information, we alerted law enforcement authorities. We have been working with law enforcement authorities since then. Because any public statement about the investigation could be prejudicial to a potential future criminal case, we are unable to comment on the specific facts that are under investigation.

As a general matter, we have detailed rules and controls protecting confidential information. All employees with access to confidential supervisory information need to agree to safeguard that information appropriately, and not to disclose it without the necessary approval. Employees receive training relating to the handling and protection of confidential supervisory information and other information security matters. Employees are informed that a violation of these restrictions could lead to criminal prosecution.

Employees also receive ongoing ethics training and are required to do an annual certification that they understand and will adhere to the Bank’s Code of Conduct. In addition, we use off-boarding procedures to confirm with departing employees that no confidential information may be taken. With respect to all New York Fed staff, departing Officers may have no official contact with the Federal Reserve System for a period of one year. In addition, all departing New York Fed employees may not have substantive business contacts with the New York Fed relating to any particular matter that he or she had worked on when employed by the New York Fed. Further, with respect to employees departing from the financial institution supervision group, if the departing employee had served as a senior supervisory officer or central point of contact at a large and complex banking organization, that employee may not receive compensation from the supervised organization as an employee, officer, director or consultant for a period of one year. Finally, the New York Fed has in place technology to help identify and prevent the forwarding of confidential information in violation of our rules.

The New York Fed understands that it is entrusted with the most sensitive information relating to the financial sector. If such information is disclosed, it could be market moving or it might interfere with an important governmental program. For these reasons, we have many different controls to safeguard such information, and a record of zero tolerance for those who do not adhere to them. Of course, we also know that we are not perfect, that information today is more difficult to safeguard, and we are resolute to learn from our experiences.
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*guffaw*


Is the NY FED trying to say that Goldman Sachs does not own shares in the New York Federal Reserve Bank?

The 12 regional Federal Reserve Banks, which were established by the
Congress as the operating arms of the nation's central banking system,
are organized similarly to private corporations--possibly leading to
some confusion about "ownership." For example, the Reserve Banks issue
shares of stock to member banks. However, owning Reserve Bank stock is
quite different from owning stock in a private company. The Reserve
Banks are not operated for profit, and ownership of a certain amount of
stock is, by law, a condition of membership in the System. The stock may
not be sold, traded, or pledged as security for a loan; dividends are,
by law, 6 percent per year.



http://www.federalreserve.gov/faqs/about_14986.htm



Because...

Goldman Sachs Bank USA (“GS Bank”) is a New York State-chartered bank and a member of the Federal Reserve System.



http://www.goldmansachs.com/what-we-do/investing-and-lending/banking/



Which is why it is a complete farce and racket to have The NY Federal Reserve Bank be responsible for regulating the member banks that own it.

The Board of Governors of the Federal Reserve System has supervisory and regulatory authority over a wide range of financial institutions, including state-chartered banks that are members of the Federal Reserve System (state member banks), bank holding companies, thrift holding companies and foreign banking organizations that have a branch, agency, a commercial lending company subsidiary or a bank subsidiary in the United States...


http://www.ny.frb.org/banking/supervisionregulate.html


fox watching the henhouse, codified into the charter. and people wonder why the banks are stealing from everyone and buying politicians with all that money

[FBD]

The most recent information from observers says that just eight families, four of which reside in the US, own 80 percent of the NY Federal Reserve Bank. They are, according Dean Henderson of Global Research in 2011, Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome.This ownership information was provided by J.W. McCallister, an oil industry insider with House of Saud connections, writing in "The Grime Reaper," information he acquired from Saudi bankers.