Dudley Defends Leadership of New York Fed in Exchange With Senate’s Warren

By Ian Katz and Jeff Kearns Nov 21, 2014 1:19 PM ET

William C. Dudley defended his supervisory record in heated exchanges with U.S. senators, who accused the Federal Reserve Bank of New York president of being too cozy with the biggest Wall Street banks.

“I wouldn’t accept the premise that there’s been a long list of failures by the New York Fed since my tenure,” Dudley said in response to an assertion by Elizabeth Warren, a Massachusetts Democrat.

“Is there a cultural problem at the New York Fed? I think the evidence suggests that there is,” Warren said. “Either you need to fix it, Mr. Dudley, or we need to get someone who will.”

The hearing was prompted by allegations by a former New York Fed bank examiner, Carmen Segarra, who said her colleagues were too deferential to Goldman Sachs Group Inc., the Wall Street bank where Dudley once worked. Segarra, who attended today’s hearing, declined to speak with reporters.

Senators questioned Dudley, 61, on issues ranging from whether some banks are too big to regulate to the Fed’s role in overseeing their commodities businesses.

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http://www.bloomberg.com/news/2014-11-21/dudley-defends-new-york-fed-supervision-in-heated-senate-hearing.html