Carmen Segarra's second (and this time almost certainly last) 15 minutes of fame, and 47.5 hours of humiliating "secret Goldman Sachs" recordings [6]proving the NY Fed is merely yet another tentacle of Goldman Sachs, have come and gone, and nobody cares. At least nobody in Congress. Oh yes, Elizabeth Warren will hold her traditional kangaroo circus in which she will complain, enunciate every syllable in that patented "stern teacher" way of hers, feign anger, and ... nothing will change.
But in the meantime, someone still remembered that the trading desk of the world's biggest hedge fund is merely a branch office of Goldman Sachs as we revealed in 2010 [7](and there are those who wonder why unlike JPM, BofA and Wells, Goldman has "no balance sheet"), and asked the head of the NY Fed, Bill Dudley whether there is any truth in Segarra's latest revelations, which one does not need an interpreter to comprehend: just listening to the public tapes is enough). This is what Dudley said [8]:
“I completely stand behind the integrity and work of our supervision staff,” he said after a speech today in New York. “They are operating completely in the public interest.”
Dudley said there has been a “significant reorganization” following a report commissioned by the regional Fed bank, and that “improving supervision has been and remains an ongoing priority for me.”
“I don’t think anyone should question our motives and what we are trying to accomplish,” Dudley said today in defense of his institution. “Examiner independence is completely paramount.”
Oh, we forgot to mention one thing [9]: "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."
Don't worry Bill: absolutely nobody is questioning your motives.
