Carmen Segarra
Carmen Segarra | |
|---|---|
| Alma mater | Harvard College, Columbia University, Cornell Law School |
| Occupation | Federal Reserve regulator |
| Known for | Oversight of Goldman Sachs; whistleblower on conflict of interest policies |
Carmen Segarra served as a regulator appointed by the New York Federal Reserve to oversee Goldman Sachs for a period of seven months starting in October 2011. During her tenure, she identified that Goldman Sachs did not have a clear policy addressing conflict of interest when advising El Paso Corporation on its acquisition by Kinder Morgan. Notably, Goldman Sachs maintained a $4 billion investment in the deal and included former Goldman employees on the El Paso advisory team. Despite pressure from her Federal Reserve supervisors to modify her findings, Segarra declined and was subsequently terminated.
Segarra initiated legal action against the Federal Reserve in the United States District Court for the Southern District of New York, asserting that her dismissal was retaliation for exposing Goldman Sachs' absence of a comprehensive conflict-of-interest policy. She argued this violated whistleblower protections under the Federal Deposit Insurance Act. However, the court dismissed her case, ruling that she did not prove her firing was directly linked to reporting breaches beyond SR 08-08, an advisory guideline lacking binding legal authority and therefore not covered by whistleblower statutes. Claims based on state law were also rejected.
In May 2014, Segarra appealed to the United States Court of Appeals for the Second Circuit, submitting legal briefs by December of that year.
Following her dismissal, Segarra made public audio recordings in September 2014 that highlighted additional shortcomings in Federal Reserve oversight of Goldman Sachs. For instance, after the European Banking Authority mandated European banks to bolster capital reserves, Santander orchestrated a transaction allowing Goldman Sachs to acquire shares in its Brazilian subsidiary for roughly $40 million—a maneuver described by Fed officials as "legal but shady." Segarra pointed out that Goldman Sachs neglected to secure necessary Federal Reserve authorization. These disclosures sparked debate over regulatory effectiveness and were featured on This American Life.
Segarra earned academic credentials from Harvard College, Columbia University, and Cornell Law School.