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Goldman Sachs Gained Inside Information From New York Fed

Apparently that recent study showing banking culture is corrupt in essence is not so far off the mark as it has now been revealed that Goldman Sachs received inside information from the New York Federal Reserve. It is not just the banksters or the regulators but a culture of corruption which has led to a seemingly endless series of corruption stories coming out of Wall Street and Washington.

In what is being called a “leak,” a former regulator with the New York Fed joined Goldman Sachs and used his contacts at the Fed to gain access to inside information for his new employer. Goldman Sachs has a long and intertwined relationship with the New York Federal Reserve with the current head, William Dudley, being a the former chief economist at Goldman Sachs.

The revolving door has quite a stench.

The previously unreported leak, recounted in interviews with the lawyers briefed on the matter who spoke anonymously because the episode is not public, illustrates the blurred lines between Wall Street and the government — and the potential conflicts of interest that can result. When Goldman hired the former New York Fed regulator, who is 29, it assigned him to advise the same type of banks that he once policed. And the banker obtained confidential information, along with several publicly available facts, in the course of assignments from his bosses at Goldman, the lawyers said.

The information provided Goldman a window into the New York Fed’s private insights, the lawyers said, including details about at least one of Goldman’s clients, a midsize bank regulated by the Fed. Although it is unclear how Goldman bankers used the information, if at all, the confidential details could have helped them advise the client.

What can one really say at this point? Friends, the game is rigged. In fact, the leak news comes just after it was revealed that Goldman is still benefiting from changes brought about by regulators during the financial crisis to bail out the banks – namely an expansion of an interpretation of something called the grandfather clause.

Why is America so unequal? Maybe because those at the top of government and banking have a mafia-style arrangement to facilitate the fleecing of the public. Crime pays, especially when the cops are in on it. But we can all rest assured that former Goldman Sachs partner now New York Fed head Dudley is going to get right on this.

Update: Goldman Sachs has now fired an employee and a supervisor over the leaking of confidential information from the Federal Reserve Bank of New York.

CommunityThe Bullpen

Goldman Sachs Gained Inside Information From New York Fed

Apparently that recent study showing banking culture is corrupt in essence is not so far off the mark as it has now been revealed that Goldman Sachs received inside information from the New York Federal Reserve. It is not just the banksters or the regulators but a culture of corruption which has led to a seemingly endless series of corruption stories coming out of Wall Street and Washington.

In what is being called a “leak,” a former regulator with the New York Fed joined Goldman Sachs and used his contacts at the Fed to gain access to inside information for his new employer. Goldman Sachs has a long and intertwined relationship with the New York Federal Reserve with the current head, William Dudley, being a the former chief economist at Goldman Sachs.

The revolving door has quite a stench.

The previously unreported leak, recounted in interviews with the lawyers briefed on the matter who spoke anonymously because the episode is not public, illustrates the blurred lines between Wall Street and the government — and the potential conflicts of interest that can result. When Goldman hired the former New York Fed regulator, who is 29, it assigned him to advise the same type of banks that he once policed. And the banker obtained confidential information, along with several publicly available facts, in the course of assignments from his bosses at Goldman, the lawyers said.

The information provided Goldman a window into the New York Fed’s private insights, the lawyers said, including details about at least one of Goldman’s clients, a midsize bank regulated by the Fed. Although it is unclear how Goldman bankers used the information, if at all, the confidential details could have helped them advise the client.

What can one really say at this point? Friends, the game is rigged. In fact, the leak news comes just after it was revealed that Goldman is still benefiting from changes brought about by regulators during the financial crisis to bail out the banks – namely an expansion of an interpretation of something called the grandfather clause.

Why is America so unequal? Maybe because those at the top of government and banking have a mafia-style arrangement to facilitate the fleecing of the public. Crime pays, especially when the cops are in on it. But we can all rest assured that former Goldman Sachs partner now New York Fed head Dudley is going to get right on this.

Update: Goldman Sachs has now fired an employee and a supervisor over the leaking of confidential information from the Federal Reserve Bank of New York.

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Dan Wright

Dan Wright

Daniel Wright is a longtime blogger and currently writes for Shadowproof. He lives in New Jersey, by choice.