Carmen Segarra Files Wrongful Termination Lawsuit Against New York Fed Over Alleged Goldman Sachs-Related Firing

| by

A former senior examiner with the Federal Reserve Bank of New York claims she was terminated after her refusal to change her critical examination of Goldman Sachs. She has now filed a wrongful termination lawsuit.

Carmen Segarra said that in her seven months of examining Goldman's legal and compliance divisions, she found the bank did not have policies to prevent conflicts of interest as required by regulation, a conclusion that might have caused a downgrade of the Wall Street bank's regulatory rating, according to Reuters.

Before she could formalize her findings, Segarra said, the senior New York Fed official who oversees Goldman pressured her to change her view, according to The Washington Post. When she refused, Segarra said she was called to a meeting where bosses told her they no longer trusted her judgment and security officers escorted her out of the Fed’s building in New York City.

“They wanted me to falsify my findings,” Segarra reportedly said in a recent interview, “and when I wouldn’t, they fired me.”

In the wrongful termination lawsuit against the New York Fed that was filed in federal court in Manhattan, Segarra is reportedly seeking reinstatement and damages.

Per a statement, New York Fed spokesman Jack Gutt said the regulator cannot speak about individual employees or about supervised institutions because the information is private, according to Reuters.

"The New York Fed provides multiple venues and layers of recourse for its employees to freely express concerns about the institutions it supervises," said Gutt. "Such concerns are treated seriously and investigated appropriately with a high degree of independence. Personnel decisions at the New York Fed are based exclusively on individual job performance and are subject to thorough review. We categorically reject any suggestions to the contrary."

Sources: Reuters, The Washington Post