The Federal Reserve Bank of New York is a privately held bank acting as financial agent of the United States since the passage of the Federal Reserve Act of 1913. But recently, the Federal Reserve is facing a controversial probe for alleged corruption issues requested by Democratic Senator Elizabeth Warren.
One of the twelve Federal Reserve banks of the United States, the Federal Reserve Bank of New York was called for an investigation soon after the weekly public radio program "This American Life" released the record that includes citations from certain conversations.
United Press International reported that based on the information from a former New York Fed bank examiner that was fired from the office in 2012, Carmen Segarra, who noted that her superiors weren't eager to stand by her claims that the business didn't have any conflict of interest guidelines. According to the record, Miss Segarra expressed her sentiments that her Fed colleagues were scared of Goldman Sachs Group, Incorporated. She said, "What I was sort of seeing and experiencing was this level of deference to the banks, this level of fear."
When the controversial record was publicly revealed, The Federal Reserve Bank of New York straightaway said that it firmly castoffs the allegations that Carmen Segarra have made. Considered as by far the largest by assets, most active by volume and the most influential of the 12 regional Federal Reserve banks, the New York fed posted a statement on their official website stating, "The New York Fed works diligently to execute its supervisory authority in a manner that is most effective in promoting the safety and soundness of the financial institutions it is charged with supervising."
Meanwhile, consistent with the reports by United Press International, US Senator Elizabeth Warren said through a statement, "Congress must hold oversight hearings on the disturbing issues raised by today's whistleblower report when it returns in November because it's our job to make sure our financial regulators are doing their jobs."
Fortunately, Senator Warren is not alone on her investigation call for The Federal Reserve Bank of New York. She was joined by her colleague and fellow Democratic Senator Sherrod Brown. Senator Brown expressed, "These allegations deserve a full and thorough investigation, and American taxpayers deserve regulators who will fight each day on their behalf."
While the controversial investigation is ongoing, The Federal Reserve Bank of New York cleared that Miss Carmen Segarra was not dismissed for her accusations but because of her poor labor performance.
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