People on Wall Street are buzzing about a new piece from ProPublica’s Jake Bernstein laying out alleged conflicts of interest between the New York Federal Reserve and the banks, Goldman Sachs in particular.
The report revolves around the secret recordings of Carmen Segarra, a bank examiner for the New York Fed who was fired after just seven months on the job.
“ProPublica and This American Life sent Goldman Sachs detailed questions about the bank’s conflict-of-interest policies, Segarra and events in the meetings she recorded,” Bernstein wrote.
Goldman’s response is understandably defensive. But it also reads a bit aggressive.
Here’s a response from Goldman’s David Wells according to Bernstein: “Goldman Sachs has long had a comprehensive approach for addressing potential conflicts … A quick Google search, however, shows publicly available Goldman Sachs documents outlining the management of conflicts … To get a balanced view of her claims, you should read what her supervisor wrote after discovering that what she had said about Goldman was just plain wrong.”
An interesting line from Wells’ response: “Ms. Segarra, who unsuccessfully interviewed for employment at Goldman in 2007, 2008 and 2009, told her supervisors at the Fed That the firm …”
While Wells doesn’t say it explicitly, this detail seems to be intended to characterise Segarra as someone who could be holding some resentment.
“Segarra said that she recalls interviewing with the bank four times, but that it shouldn’t be surprising,” Bernstein wrote. “She has applied for jobs at most of the top banks on Wall Street multiple times over the course of her career, she said.”
Here’s the email via Bernstein: