Who Is Carmen Segarra?

Federal Reserve Bank of NY, 33 Liberty Street
Federal Reserve Bank of NY, 33 Liberty Street (Photo credit: Wikipedia)

Posted October 20, 2013

by Jerry Alatalo

For those who have tried to do what they can to expose the historic criminality on Wall Street, Carmen Segarra is, as they say in law enforcement circles, “a person of interest”. Not in the sense that she has come to be seen as a suspect in some sort of crime, but that her case is one that can help the citizens of America and the world learn how the Wall Street operators “operate”.

As the story of Ms. Segarra is relatively new and developing, so far I have not a great deal to say about it. However the most important aspect of her story has to do with regulation of the financial sector-or should I say the lack of regulation. Carmen Segarra was a bank examiner for the New York Federal Reserve and worked on compliance issues as they related to Dodd-Frank laws as well as other financial regulation rules according to laws passed by Congress.

Firstly, we find that in effect the Federal Reserve is a self-regulating institution. This situation is a major league problem for many people, including Bill Black, who was heavily involved in investigations of savings and loan banks in the mid-eighties, which led to hundreds of convictions of high-level managers, as opposed to zero convictions of those responsible for the 2008 financial crisis.

In the short video of Bill Black on The Real News, he comments on Ms. Segarra’s situation, as she discovered some problems at Goldman Sachs with regard to laws on conflict-of-interest specified in Dodd-Frank legislation. As a bank examiner in the area of government law compliance, she submitted a report that was in effect the truth-her honest observations. Evidently she was encouraged by her superiors to change her report, declined to falsify her findings, and was terminated very shortly afterwards.

Thus far details about what Ms. Segarra found at Goldman Sachs relate to problems of conflict-of-interest. One may surmise that she discovered information which proved sales of so-called toxic assets to customers, while being fully aware of the worthlessness of them-placing bets against the complex financial products while claiming to customers that they are “great investments”.

Ms. Segarra received training as a lawyer and filed a wrongful termination suit against the New York Branch of the Federal Reserve. She claims in effect that she was fired for doing her job. Since she filed her lawsuit the New York Fed has attempted to “seal” certain documents she has in her possession, including internal emails, as the Fed claims she was in the wrong for taking documents which are the property of her former employer. I have seen only one interview of Ms. Segarra on the Spanish TV channel Univision Noticias. Unfortunately at this point no English interviews of her are available.

It would seem that the story of Carmen Segarra is one that journalists say, “has legs”, and may become a very large story the likes of Bradley Manning and Edward Snowden. As her story unfolds and becomes learned about by the American people and men and women around the Earth, what is uncovered may lead to very significant levels of concern and demands for a variety of reforms. As deregulation is widely accepted as the major cause leading to fraud, corruption and impunity in the years leading up to 2008’s worldwide financial catastrophe, Carmen Segarra may soon become a household name.

(After posting this-Special thanks to Ian @ Ace News Services for providing the following link to an absolutely astounding article @ ProPublica regarding Carmen Segarra)

http://www.propublica.org/article/ny-fed-fired-examiner-who-took-on-goldman

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(Update September 28, 2014: The following link will take you to a radio broadcast about Carmen Segarra’s explosive “Secret Tapes” at This American Life.

http://m.thisamericanlife.org/radio-archives/episode/536/the-secret-recordings-of-carmen-segarra

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To any readers who have thoughts to add surrounding the true importance of Carmen Segarra’s story, her situation, and her lawsuit against the Federal Reserve, please do not hesitate to share them in the comments section below.

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15 thoughts on “Who Is Carmen Segarra?

    1. Shelby,
      How neat. We were simultaneously commenting on each other’s post. Carmen Sebarra, I predict, will become as well-known as Manning and Snowden-would that surprise you? If her name doesn’t get mentioned big-time on mass media, we will know that media corporation censorship is even more pervasive than we imagined. Her story is huge.
      Thank you,
      Jerry

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      1. With Manning in prison and Snowden in exile and since we are talking about Wall Street here, I don’t think anything will be done about it. Because after all, it is a known fact that those who brought the financial institutions to the brink of ruin by engaging in fraud and other nefarious activities never saw the inside of a prison cell and were in fact, considered ‘too big to fail’ and then turned around and rewarded themselves multi-million dollar bonuses for their bad behavior and this was allowed. Even though, they were bailed out by taxpayers who in turn were promptly foreclosed on and denied credit by these fraudsters, but the fraudsters never suffered, only the drudging taxpayers did.

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        1. Shelby,
          One senses that the Sebarra story opens a “can of worms” which, because of the American people’s justified indignation (as you state), the Wall Street crowd will not be able to close. There are too many journalists who will follow this story to the end. This Goldman Sachs outfit is like an octopus that covers the Earth. We shall see.
          Thanks,
          Jerry

          Like

    1. Robert,
      Important truths have a way of making their way to the surface and the “light of day”, as you said. Ms. Segarra’s experience is one which provides evidence of the “insider trading” aspect of doing business on Wall Street. The latest article from propublica.org reports that the woman judge in the case ruled the internal documents will not be sealed, so will see the light of day. We can keep our fingers crossed that this situation will lead to a breakthrough of sorts.
      Thank you,
      Jerry

      Like

  1. Geeezzz, Jerry. You just keep tossing posts (like an All-Star pitching newspaper boy) not just straight onto my porch, but ‘smashing’ my front door *wink* until the hinges are about to break-off then CRASH! Headline reads… and I’m hooked! lol

    Excellent stuff my blogging friend! Thank you.

    Like

    1. Professor,
      Came across Ms. Segarra in my typical bumbling, stumbling way. A fellow blogger kindly supplied the link to ProPublica’s (propublica.org) most in-depth article(s). Bill Black is one smart man when it comes to criminality in the financial sector. A real go-to fellow who is a straight, straight shooter.
      Thank you,
      Jerry

      Like

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