Fed Reviews Bank Supervision as Senate Begins Hearings

The transcript discusses the Federal Reserve's preemptive investigations into its own supervision of major banks, addressing criticism of being too close to the firms it regulates. Bill Dudley is set to testify before the Senate, acknowledging these criticisms and defending the Fed's actions. The transcript also covers recent leaks and disclosures, including a former Fed employee leaking information to Goldman Sachs and Carmen Segarra's audiotapes revealing internal Fed discussions. The Fed is conducting an internal review to assess its regulatory practices, with Dudley warning banks about the need to change their culture.

What action did the Federal Reserve take in response to criticism about its relationship with banks?

• Reduced its regulatory powers

• Increased interest rates

• Merged with another financial institution

• Launched two internal investigations

Who leaked internal information from the New York Fed to Goldman Sachs?

• Carmen Segarra

• Peter Cook

• Bill Dudley

• A former Fed employee

What did Carmen Segarra's audiotapes allegedly reveal about Fed officials?

• They were too aggressive with banks

• They were fearful of the banks they regulate

• They were planning to increase interest rates

• They were reducing bank regulations

What is the purpose of the Fed's sweeping review of its practices?

• To increase bank profits

• To ensure it is not too cozy with banks

• To merge with international banks

• To reduce the number of banks

What potential action did Bill Dudley suggest if bad behavior in banks persists?

• Breaking up large firms

• Increasing interest rates

• Merging banks

• Reducing bank regulations