America's distrust of the banking system has moved from a general weariness to downright worry since the Great Recession hit. But though the Occupy movement did a good job shifting public opinion (or did it?), the lack of concrete details about what goes on behind the gilded doors of the One Percent, and how much The Federal Reserve is doing to curb their more wanton impulses, remains hazy. To put it simply: Most people (myself included) have very little fucking idea how the financial system is regulated.
Today, however, This American Life could change all that. In a fantastic exposé by journalist Jake Bernstein, we are treated to an inside look (or should I say, listen) at the machinations inside both the Fed and banking megalith Goldman Sachs. The takeaways, to put it simply, are damning. Federal Reserve employee Carmen Segarra recorded 46 hours of audio after noticing a shocking level of deference (also known as "capture") to the banks. What we learn is that the Fed suppresses instances when an employee wants to go after the banks for misconduct. Over and over, questionable practices are ignored, laws are allowed to be bent, and pressure is (successfully) exerted to alter documents in Goldman's favor. It's truly a journalistic tour de force that affirms many of our greatest fears about the banking industry.
Michael Lewis said it best over at BloombergView: "The Ray Rice video for the financial sector has arrived."
