The NY Fed's Attempt To Explain That It Is Not A Subsidiary Of Goldman Sachs

The most shocking, if already completely buried, news of the day was that - in yet another confirmation that Goldman Sachs is in charge of the New York Fed - a NY Fed staffer was colluding and leaking confidential, material information to a 29-year-old Goldman vice president, himself a former Federal Reserve employee. This only happened because on the day Carmen Segarra disclosed her 47 hours of "secret Goldman tapes" on This American Life, Goldman executives asked the former Fed staffer where he had gotten what appeared to be confidential information from. To nobody's surprise the answer was: The New York Fed.

So as the latter, also known as the biggest hedge fund of the western world with $2.7 trillion in AUM, is scrambling to once again prove it is shocked, shocked, that it has become merely the latest subsidiary of Goldman Sachs, Inc., it released the following statement explaining what "really" happened.

From the NY Fed:

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. 

So did this technology fail? Or is Goldman simply one of the exempted parties?

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.

And then the NY Fed released this:

The Federal Reserve Board on Thursday announced two separate reviews that are underway at the Federal Reserve System to ensure that the examinations of large banking organizations are consistent, sound, and supported by all relevant information.

At the request of the Board, its Inspector General is examining two aspects of the Federal Reserve System's examination program for large banking organizations:

• Whether there are adequate methods for decision-makers at the relevant Reserve Banks and at the Board to obtain all necessary information to make supervisory assessments and determinations;
• And whether channels exist for decision-makers to be aware of divergent views among an examination team regarding material issues.

Additionally, the Board is conducting its own review of the supervision of the largest, most systemically important financial institutions in the United States. This review will focus on:

• Whether the decision-makers at the Board receive the information needed to ensure consistent and sound supervisory decisions regarding the supervision of the largest, most complex banking organizations;
• And whether adequate methods are in place for those decision-makers to be aware of material matters that required reconciliation of divergent views related to supervision of those firms.

Attachment (PDF)

At this point one can only laugh as the entire corrupt system careens to its inevitable reset.

Comments

[devo]

This is like when Evel Knievel tried to jump the Snake River!

[hedgeless_horseman]

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

[linniepar]

Nice HH.

"  Finally, the New York Fed has in place technology to help identify and prevent the forwarding of confidential information in violation of our rules. "

Fancy way of saying the NSA, eh?

[Beam Me Up Scotty]

"That would be illegal, and we don't do that."

[Silky Johnson]

Nauseating.

[Richard Chesler]

I'm not a violent person but I would love beating the crap out of a Goldman bankster with a baseball bat.

[tired1]

There's no need for violence, perhaps you just lack some imagination.

How about: putting these guys (and gals, no reason to be sexist these days) under public toilets in kind of tiger pits. Folks could pay 25 cents for the privilege of urinating and defacating on these scumbags (not to insult scum, I'm sure it has a use somehow).

You see? No reason to resort to violence.

[drdolittle]

We are not a subsidiary of the squid. That's how they'll say it, just lie straight up.

[Bloppy]

Does the news cycle seem a bit more surreal every day?

[Berspankme]

I'm sure DOJ will be all over this. Fuck you Holder

[debtor of last ...]

I did not have sachs with that woman.

[WTFUD]

. . . my sachs may have brushed against her genitals but . . .

[Bell's 2 hearted]

wonder what timmay geithner (who when he was president of the new york federal reserve bank told a TBTF of pending interest rate move ... according to fellow FR president) would say?

[Kaiser Sousa]

(Reuters) - Some of the biggest price moves in gold since late October have, unusually, occurred in Asian hours and traders more accustomed to following the lead of their Western counterparts suspect a big increase in algorithmic trading may be to blame. Sensitivity to the dollar-yen exchange rate may also help explain the moves, although some traders speculated that the timing looked suspiciously like attempts to catch Chinese traders off-guard during their lunch break.

Liquidity in Asia tends to be thin until Europe wakes up but recent weeks have been different: COMEX gold futures, the busiest gold contract in the world, have suffered sharp sell-offs in Asia, sometimes sparked by the news flow or currency moves but often for no identifiable reason.
"It is unusual for Asia to be seeing these busy trading sessions," said David Govett, head of precious metals at broker Marex Spectron in London.

“I have spoken to a lot of people about it and the general consensus seems to be that there is a big increase in algorithmic and high-frequency trading in this time zone nowadays as it can be quite easy to push about," he said. The trend began on Oct. 31, when U.S. gold futures fell through a major technical level of $1,180 an ounce at around 3 p.m. Singapore time (0700 GMT).

They fell $11 in a minute and nearly 9,000 lots were traded in five minutes, compared with just 535 lots in the five minutes preceding the drop.
Some of the dips in price have tracked dollar-yen movements, including that one on Oct. 31, when the Bank of Japan announced a surprise increase in monetary stimulus and the yen tumbled. The breach of $1,180 - the lowest level hit by gold during last year's 28 percent slide - sparked a huge sell-off in the precious metal over the next two weeks.

In the days following the first dip, gold tumbled 1 percent or hit new lows almost every other day around the same time, between 12:45 p.m. and 1:45 p.m. Singapore time. The slide took gold all the way down to $1,130.40 an ounce, its lowest since March 2010, reached in Asian hours on Nov. 7, when nearly 4,000 lots changed hands in just one minute. “Someone is utilising these thin trading volumes to get a turbo steroid move," said a precious metals trader in Hong Kong. Traders in Tokyo have also noticed that the falls tend to happen a few minutes before their markets are set to close.”

[insanelysane]

It takes two to tango.  Goldman wacked a couple of employees but the FED has kept all of theirs.  Apparently law enforcement led by Mr. Holder are undertaking another extensive "investigation."  Either that or they are waiting for a memo from Goldman detailing what their "investigation" found.

[NotApplicable]

All about putting the "limited" in "limited hangout."

[Bay of Pigs]

They don't need to explain anything. The William Dudley's bio....

"Prior to joining the Bank in 2007, Mr. Dudley was a partner and managing director at Goldman, Sachs & Company and was the firm's chief U.S. economist for a decade."

http://www.newyorkfed.org/aboutthefed/orgchart/dudley.html

[whisperin]

Official contact or not did they have contact and what did they discuss? The longer this goes on the less credibility anyone can have.

[Bell's 2 hearted]

i wouldn't worry ... i'm sure goldman sachs general counsel is busy writing up the press releases for DOJ/SEC/OCC/FDIC/FR

[Bell's 2 hearted]

thoroughly enjoyed the hank paulson (ex-CEO of goldman sachs) two step while Sec of Treas ... allowed arch rival lehman go down ... THEN the discount window of Federal Reserve open to investment banks

[Bunga Bunga]

There is a tunnel for a reason.

[Kaiser Sousa]

BREAKING NEWS ON CNBC...
the S&P and the Dow have just hit all time record highs!
again!
in the last 30 minutes of trading!
on no volume!

[insanelysane]

Happy Days are here again!!!

[Kaiser Sousa]

"We're in the money,
We're in the money;
We've got a lot of what it takes to get along!
We're in the money,
The sky is sunny;
Old Man Depression, you are through,
You done us wrong!

We never see a headline
'Bout breadline, today,
And when we see the landlord,
We can look that guy right in the eye .

We're in the money
Come on, my honey
Let's spend it, lend it,
Send it rolling around!"

[madbraz]

If this was a just country, by now the FBI would have an undercover operation, bug Dudley and KHenry and obtain irrefutable evidence that would be enough to end the NY FED and put them behind bars.

As we don't, and Goldman owns the FBI, we watch and cringe at these masters of arrogance and corruption.

[limacon]

Naughty , naughty ! The sheeple are coming for you .

You are about 3 times richer than you think .

See

https://www.academia.edu/9405720/The_Economics_of_Disrespect_Update_I

or

http://andreswhy.blogspot.com/2014/11/the-economics-of-disrespect-update...

[Bastiat]

I love that Aldrich Plan graphic.

[ted41776]

does a bear shit in the woods?

[JR]

To understand Goldman’s ticket to monopoly, the key is the Fed’s chain of command.

Since the days of Alexander Hamilton the investment banks have made their home and impact in the Empire State.  There, the concentration of big banks has made the NY Federal Reserve Bank powerful enough to outmaneuver, outvote and override all other regional interests. Its Fed ownership position, extensive size, holdings, insiders operating in the Fed and its New York contacts guarantees Goldman Sachs the leverage when needed to direct the Federal Reserve System. 

It boils down to this: when you have the kind of leverage Goldman and the TBTFs have, this Wall Street money trust can make the critical decisions.  One consortium, Goldman Sachs, tells the NY Fed what to do; it tells the FOMC and it relays its decision to Janet Yellen, representing 90 percent of the banking power. It means the government of the United States is under the direction of the Wall Street money trust.

The Federal Reserve Bank of New York is the feature of how centralized, incestuous and tyrannical America’s financial system has become. It is the New York Fed that literally gives the first and last word on who gets what and when in financial America. In other words, when the money trust picks its winners and losers, it’s here’s where the decisions are made....

Because of the extensive holdings and connections of New York based investment banks, what influence could a St. Louis or Dallas banker possible make on Fed policy? And since the domination of the Fed by Ben Strong of J.P. Morgan Trust and Governor of the New York Fed from 1914 until his death in 1928, no Fed decision is made without the New York stamp.

The president of the New York Fed is a permanent voting member of the FOMC and traditionally is selected as its vice chairman. The other presidents serve one-year terms on a rotating basis. All of the presidents participate in FOMC discussions, but only the five who are members of the Committee vote on policy decisions.

The Federal Reserve Bank of New York has several unique responsibilities associated with its presence in the financial capital of the United States.

At the direction of the Federal Open Market Committee (FOMC), the Federal Reserve's top monetary policy-making group, the New York Fed executes domestic open market operations on behalf of the System.

Open market operations—the buying and selling of U.S. government securities in the secondary market—are the principal means through which the System implements monetary policy. Although the FOMC decides what policy to follow, the System's portfolio is directed, on a daily basis, by the Manager of the System Open Market Account at the New York Fed. The Manager, along with the rest of the Open Market Department, constantly monitors bank reserves and acts to ensure that the FOMC's directive is being fulfilled.

In addition to its domestic trading desk responsibilities, the New York Fed, at the direction of the FOMC and U.S. Treasury, conducts all foreign exchange trading for the Treasury and the Federal Reserve System. In this role, the New York Fed intervenes in foreign exchange markets to achieve dollar exchange rate policy objectives and to counter disorderly conditions in foreign exchange markets.

The New York Fed also is responsible for maintaining relations with, and providing financial services for, foreign central banks and international organizations. One of these services is the New York Reserve Bank's unique custodial responsibility for the gold reserves of about five dozens countries, central banks, and international organizations. The New York Fed's gold vault stores approximately one-quarter of the world's official gold supply—the largest concentration of monetary gold in the world.

Foreign official gold reserves have been held at the New York Fed since 1924 for numerous reasons, including the stability of the U.S. political system, the concentration of international trade and finance in New York City, and the convenience of centralizing gold holdings in a place where international payments can be made quickly.

The truth is, Goldman Sachs is one of the Fed owners, but it is so big, it is pushing everybody else around, at the moment.

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.

http://www.globalresearch.ca/the-federal-reserve-cartel-the-eight-families/25080

[Ruffmuff]

 no Fed decision is made without the New York stamp.

 The stamp must look have the same look as my imprint of used toilet paper.  From the bankers ass, to the governments lips, nice, but stinky.

So what does congresscritters charge for a standard rim shot these days???

[GIABO]

"Nailgun meet banker, banker meet nailgun"

[insanelysane]

Tylers,

The CITI guy was suicided

http://www.cnbc.com/id/102205336?trknav=homestack:topnews:8

[vyeung]

wake me up when people finally catch on! yawn......

[rodocostarica]

  In addition, we use water off -boarding procedures to confirm with departing employees that no confidential information may be taken

[moneybots]

"The NY Fed's Attempt To Explain That It Is Not A Subsidiary Of Goldman Sachs"

Is the FED spokes persons name Gruber?

[Fuku Ben]

My wife came home early one day and caught one of our sons in bed with his girlfriend. Their clothes were on and he claimed he never touched her.

We quickly contacted local law enforcement and her family and our media spokesperson released the following statement to the press:

"We are are diligently working with local law enforcement and the other parties involved to ascertain the extent of any interaction. We do not wish to prematurely ejaculate or speculate and falsely jump to any conclusions. Therefore, we will wait until a comprehensive investigation has taken place by the proper authorities. We have thoroughly documented procedures regarding any third party interactions of our progeny. They were required to sign vows of chastity and follow strict guidelines adhering to corporate policy. We discourage all interactions with members of the opposite sex when they are unaccompanied and provide all of our minor employees complete sex education training. Due to the fact that this is an ongoing investigation we will make no further comment until that investigation is complete. Thank you for your patience and understanding during these trying times. Our hearts and minds go out to the troops in combat around the globe, the victims of any recent false flag shooting drills and anyone suffering from any form of cancer or other terminal illness."

[Cetyc]

As I am not a big fan of weeping, I shall laugh...

[MrBoompi]

Buried in the NY Fed statement is the sentence "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."

And there is the rub.  Does anyone believe these leaks of confidential information are not approved at the highest levels of the Fed?  The Fed and its member banks are colluding in every way possible to extract as much wealth as possible from everyone, including US citizens, using every means legal and otherwise.  It's as if since 2008 or even earlier it became government/Wall St policy to steal as much as possible as quickly as possible.

[Joebloinvestor]

"inappropriately obtained confidential supervisory information"

as opposed to:

appropriately obtained confidential supervisory information.

HAHAHAHA

[Badabing]

Only gold coin will be used as money in the USA
We the people.
Along with the 90 day gold bond.
We are so fucked

[Jstanley011]

Carmen Segarra has recorded the regulatory capture of the Federal Reserve's bank examiner bureaucrats by the Vampire Squid in real time, out in the wild. She is also a drop dead fox, but I digress...

The Secret Recordings of Carmen Segurra

[Goldmans-fucker]

LOOOL

Why does the Federal Reserve lend money to banks?

The Federal Reserve lends to banks and other depository institutions--so-called "discount window lending"--to address temporary problems they may have in obtaining funding. Those problems can range from "garden variety" issues, such as funding pressures associated with unexpected changes in a bank's loans and deposits, to extraordinary events, such as those that occurred after the September 11, 2001, terrorist attacks or during the financial crisis in 2008 and 2009. In all of these cases, the Federal Reserve provides loans when normal market funding cannot meet banks' funding needs; while the discount window is not intended for ongoing use in normal market conditions, it is available to cover unexpected developments.

To encourage banks to first seek funding from market sources, the Federal Reserve lends at a rate that is higher, and thus more expensive, than the short-term rates that banks could obtain in the market under usual circumstances. To minimize the risk that the Federal Reserve will incur losses from lending, borrowers must pledge collateral, such as loans and securities. Since 1913 when the Federal Reserve was established, it has never lost a cent on its discount window loans to banks.

http://www.federalreserve.gov/faqs/banking_12841.htm

[Questan1913]

No one noticed that stock shareholders receive a 6% annual dividend!!??

Do commenters even read these articles?

Apparently not.

[Tic tock]

The Supreme Court is deeply compromised, Congress directs Government spending And is allowed to peform insider-trades (Democratic values?), the Police and the courts are Gung-ho and legally stealing from the citizens (!?),...in what way is this not a Failed State? -- Western Banking is the Temple of Theft, Murder and Lies -- the Four Estates have been so degenerate for so long (since Bismarck), no-one equates them with 'a moral compass pointing north'. ..The SEC? the most useless agency on the face of the planet, this you're going to get yer knickers in a twist about? So the Government and the banks broke a Law, the Law doesn't apply to the Government and its friends/owners - that's why there is a 'government', so it can break the Law for the good of the people, just ask the Supreme Court.