The Secret Goldman Sachs Tapes

An anonymous reader writes: The radio program "This American Life" has published an extraordinary investigative report on how the U.S. government regulators in charge of keeping an eye on the banks actually interact with powerful financial institutions (podcast here). Financial journalist Michael Lewis describes the report thus: "The Fed failed to regulate the banks because it did not encourage its employees to ask questions, to speak their minds or to point out problems. Just the opposite: The Fed encourages its employees to keep their heads down, to obey their managers and to appease the banks. That is, bank regulators failed to do their jobs properly not because they lacked the tools but because they were discouraged from using them. The report quotes Fed employees saying things like, 'until I know what my boss thinks I don't want to tell you,' and 'no one feels individually accountable for financial crisis mistakes because management is through consensus.'"

Comments

is anyone really surprised here

[ganjadude]

most people here anyone have known for a long time that the banks and government have a symbiotic relationship. I guess its nice to see some proof for once. I cant say I am shocked in the least however.

Re:is anyone really surprised here

[Charliemopps]

most people here anyone have known for a long time that the banks and government have a symbiotic relationship. I guess its nice to see some proof for once. I cant say I am shocked in the least however.

So why is it, that when presented with evidence of some horrible thing, people tend to use it as a tool to act arrogant? "I always knew that was going on. You're a fool if you didn't."

You didn't know, you suspected. We all did. This is evidence. Get mad. Apathy is your enemy.

Too big

[jhol13]

Isn't it nice ... if you destroy one persons life, you get penalty big enougf to ruin your life - if you ruin 100'000 you get a "golden parachute".
Number of prosecuted persons (from last bank breakdown - and one before that - and next) is just appalling.

Re:Goldman Sachs All Throughout the Obama Admin

[Herkum01]

Warren Buffet, a government employee and/or consultant? Please

Warren Buffet has probably one of the few people who has always gotten the best of Goldman Sach's because whenever they really fuck things over, he squeezed them for top of the line deals. Pretty much what Goldman Sach's did to anyone else given half the chance.

The wrong people are scared

[Morpeth]

Listened to segment on NPR this morning, what I got out of it was the Fed is afraid of the big investment banks, when it should be the other way around. I was honestly a bit shocked by how timid and afraid the Fed people were, it was embarrassing.