According to The Wall
Street Journal, a study sponsored by the Federal Reserve Bank of New York in
2009 uncovered “a culture of suppression that discouraged regulatory staffers
from voicing worries about the banks they supervised.”[1]
Whereas the report points to excessive risk aversion and group-think as the
underlying problems, a fuller explanation is possible—one with clear
implications for public policy.
The full essay is at The New York Fed.
1. Pedro N. Da Costa, “N.Y.
Fed Staff Afraid to Speak Up, Secret Review Found,” The Wall Street Journal, September 28, 2014.
