A former senior bank examiner for the Federal Reserve Bank of New York sued her ex-employer, claiming she was fired because she refused to change her findings that Goldman Sachs lacked a firmwide conflict-of-interest policy.
Bloomberg reports that Carmen Segarra, 41, said in a lawsuit filed Thursday in Manhattan federal court that she examined the legal and compliance divisions of Goldman Sachs in late 2011 and early 2012 and found that they lacked a policy that conformed with federal banking regulations. She alleges she was fired because she refused to withdraw her findings.
'Defendants repeatedly obstructed and interfered with Carmen’s examination of Goldman over several months', according to the complaint. 'Finally, in May 2012, defendants directed Carmen to change the findings of her examination. Carmen refused. Because Carmen refused to change her findings, defendants terminated her three business days later, on May 23, 2012'.
Michael Silva, who is named as a defendant, was the New York Fed’s relationship manager for Goldman Sachs, according to Segarra. In a meeting, he said the Fed 'possessed information about Goldman that could cause Goldman to ‘explode'', Segarra said in her complaint.
In her complaint, Segarra cites e-mails with Silva in which she argues that Goldman Sachs doesn’t have a firmwide policy that met requirements while Silva accuses her of telling him the bank didn’t have a policy at all.
A Goldman spokesperson said: 'As we have described publicly in our business standards committee report, Goldman Sachs has a comprehensive approach to addressing conflicts through firmwide and divisional policies and infrastructure'.
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