Fed to overhaul standards for large bank examiners

It will not be easier...

The Federal Reserve said it is setting tougher standards for examiners of the largest US banks. The tougher standards are as a result of criticism by lawmakers that the examiners had been "captured" by the lenders it supervises.

The Fed supervision was questioned when Carmen Segarra - a former NY Fed bank examiner - said that her colleagues were "too deferential to Goldman Sachs" and that they ignored her complaints.

The Fed wants a more balanced approach to examiners findings and wants to "encourage the exchange of divergent views".

You can read more about it on the Fed's website

http://www.federalreserve.gov/newsevents/press/bcreg/20151124b.htm

This reminds me of the times in my past, when outside auditors would come in the bank and question me and others about what we were doing. Quite frankly - not that there was anything being done wrong - but I tended to feel they simply were not as knowledgeable about the products or what we did.

I can imagine how Goldman would be able to push examiners around a bit. And if there was something amiss or if they did not quite understand, how an examiner might not be so anxious to become too vocal. After all, it is Goldman - and who knows, maybe there was a future job opportunity. Just saying....