Something's Dangerously Wrong at NY Fed

In recent weeks, multiple allegations show that the New York Fed, the largest and most important of the regional Federal Reserve banks, would rather allow financial institutions to conduct their business unencumbered than break them up. Last month, former employee Carmen Segarra released secretly recorded tapes to public radio’s This American Life, showing that the New York Fed worked diligently to avoid confrontation with Goldman Sachs over the investment bank’s admittedly “shady” practices. This week, more embarrassment arrived in a Federal Reserve Inspector General’s report.