A former bank examiner with the Federal Reserve Bank of New York lost a lawsuit against her former employer after a federal judge ruled on Wednesday that she had not shown that she was fired over refusing to change certain findings about Goldman Sachs.
The New York Times reports that the judge, Ronnie Abrams, said in her ruling that the examiner, Carmen M. Segarra, failed to prove that her firing was directly related to her finding that the bank had exhibited certain questionable ethics practices, including a lack of internal conflict-of-interest policies.
'The law only protects those who adequately allege that they have suffered retaliation for providing information regarding a possible violation of a ‘law or regulation,’ as distinct from what the law treats as advisory guidance', the judge wrote. 'Plaintiff has not done so here'.
Ms. Segarra raised alarm bells at the Fed after discovering that Goldman lacked any firmwide conflict-of-interest policies, and that it had not conducted an anti-money laundering analysis on one deal on which the bank had advised, according to the lawsuit.