Apparently, the dog that didn't bark is beginning to bite, if New York Federal Reserve Bank President William Dudley's recent comments at a New York University event are any indication.
Dudley pushed back against allegations that the Fed is "weak and deferential' in its dealings with big banks.
"We are going to keep striving to improve, but I don't think any one should question our motives or what we're trying to accomplish."
Some of the allegations surfaced after a recent report that a 2009 internal study at the bank suggested a culture where regulators were discouraged "from voicing worries about the banks they supervised," according to the Wall Street Journal.
Dudley noted that the Fed in recent years has implemented several changes that, in his view, reduced risk in the financial system.
"I completely stand behind the integrity and work of our supervision staff at the New York Fed. These people are completely dedicated to the goal of the safety and soundness of the financial system and that's it. They are operating completely in the public interest," he concluded.
One of the issues in the 2009 report centered on a secret tape made by a former New York Fed bank examiner who taped meeting with her supervisors and bank executives. Some of tape apparently referenced an "examiner unwilling to challenge a big
Wall Street bank," the Wall Street Journal reported.
Someone needs to point out to Mr. Dudley it's fairly common business practice to be "weak and deferential" to your owners. So why is he getting so upset?
t. man hatter
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