Wall St. is still in control. And their excesses will once again lead to a collapse. The lunatics have taken over the lunatic asylum:
The tapes -- secretly recorded by then-bank examiner Carmen Segarra, whom the New York Fed employed for seven months in late 2011 and early 2012 to keep tabs on Goldman -- don't capture any craven wrongdoing by the bank. (Goldman Sachs responded with a short, dismissive statement last week when the tapes were made public.) Instead, it's the New York Fed that comes off looking terrible -- deferential and ineffectual, and apparently concerned above all with accommodating the banks it was supposed to regulate. It's a perfect picture of a culture structured by regulatory capture. For instance: ProPublica reporter Jake Bernstein describes a meeting where a senior Goldman compliance executive "mentioned that Goldman's view was that once clients were wealthy enough, certain consumer laws didn't apply to them."