WASHINGTON Federal Reserve Bank of New York President William Dudley will testify before a Senate panel next week on questions about whether the bank is too cozy with the industry.
The hearing scheduled for Nov. 21 before the Senate Banking Committee's financial institutions subcommittee first announced last month stems from an investigative report by ProPublica and the radio show "This American Life" that portrayed the New York Fed showing deference to major firms under its watch, including Goldman Sachs.
The September report, which was strongly disputed by the regulatory agency, was based on discussions among supervisory officials that had been taped by former Fed examiner Carmen Segarra. She later sued the agency over her firing.
The hearing witness list, which was released Friday, also includes Columbia University professor David Beim. In 2009, Beim conducted a now-well-known study commissioned by the New York Fed of the regulator's supervision procedures in which he recommended changes to the agency's culture. Also testifying will be Cornell University law professor Robert Hockett and Norbert Michel, a fellow at the Heritage Foundation.