Regulator Secretly Taped Federal Reserve

In 2008, when the New York Federal Reserve began hiring specialized examiners to reform failing financial institution, Carmen Segarra was assigned to Goldman Sachs. Over the next several months—before she was fired for allegedly “refusing to back down on negative findings”—Segarra recorded 46 hours of meetings and conversations. Published for the first time by Propublica on Friday, the recordings reveal the New York Fed was “reluctant to push hard against” Goldman and other financial institutions it is regulating. As Wall Street chronicler Michael Lewis puts it: "The Ray Rice video for the financial sector has arrived."