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Lawmakers Call for Hearing on ProPublica Story on NY Fed

By MJ Lee, Politico

Democrats on the House Financial Services Committee are asking panel Republicans to hold a hearing into recent news reports concerning whether the Federal Reserve Bank of New York fired a bank examiner for refusing to back down from negative assessments of Goldman Sachs.

Rep. Maxine Waters and other Democrats wrote committee Chairman Jeb Hensarling and Oversight and Investigations Subcommittee Chairman Patrick McHenry today asking that a hearing be scheduled to examine the “culture and management practices” at the New York Fed.

The request was prompted by a story published last week by ProPublica and NPR, which detailed hours of secret recordings made by former Fed bank examiner Carmen Segarra. Segarra was hired by the New York Fed to oversee Goldman in 2011, and alleges that she was fired after just seven months on the job because of her critical views of the Wall Street bank.

“The article raises important questions about whether adequate changes in management and workplace culture have taken place at FRBNY following the financial crisis and suggest that additional scrutiny is needed to ensure that management practices and workplace culture at the FRBNY do not serve to undermine the effectiveness and integrity of the FRBNY’s supervision of the financial institutions under its purview,” Waters and her colleagues Al Green and Keith Ellison wrote in a letter today.

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