An unprecedented look inside one of the most powerful, secretive institutions in the country. The NY Federal Reserve is supposed to monitor big banks. But when Carmen Segarra was hired, what she witnessed inside the Fed was so alarming that she got a tiny recorder and started secretly taping.
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ProPublica's Jake Bernstein tells the story of Carmen's first months at the New York Fed, and how she came to start recording. And we hear the story of how the Fed examiners respond to an unusual, questionable deal that Goldman Sachs did — a deal that the top Fed guy stationed inside Goldman calls "legal but shady."
We hear what the New York Fed and Goldman Sachs say about all this. We hear a New York Fed supervisor tell Carmen Segarra how an examiner should talk and act to be successful at the Fed. And we hear what happens to Carmen when she does exactly what David Beim's confidential report told the Fed it needed to encourage its examiners to do in order to spot the next financial crisis.