Government agencies pandering to the people they regulate is business as usual and comes to light when someone blows the whistle.
In this case the Fed lays down to big banks; not because they are too big to fail but because these government employees look forward to retirement and a cushy deal working for the banks they regulate.
The Federal Reserve is among the most powerful institutions in the nation and also among the more private. But new audio tapes secretly recorded by a former employee provide a rare look into meetings involving officials from the Federal Reserve Bank of New York.
In them, you hear officials considering how to oversee Goldman Sachs, and specifically, they discuss a financial transaction that one official describes as "legal but shady."