The ex-employee, Carmen Segarra, said after examining Goldman's
legal and compliance divisions for seven months, she found the bank
did not have policies to prevent conflicts of interest as required
In a 30-page court document, lawyers for the New York Fed said some
of Segarra's claims were "implausible owing to numerous
contradictions within her pleading."
"Most glaringly, the allegation that Goldman Sachs did not have any
conflict of interest policy is belied by plaintiff's own exhibits,
which show that the 'nonexistent' policies were, in fact, available
on Goldman Sachs's public website," the document said.
Attorneys who filed the motion in federal court in the Southern
District of New York and Segarra's lawyer, Linda Stengle, did not
immediately respond to a request for comment. A Goldman Sachs
spokesperson declined to comment.
According to Segarra's lawsuit, the New York Fed's Legal Compliance
and Risk team voted to downgrade Goldman's annual rating pertaining
to policies and procedures as a result of findings. She alleges that
two New York Fed officials overseeing the Wall Street bank, Michael
Silva and his deputy Michael Koh, were concerned a downgrade would
hurt the Goldman's business.
[to top of second column]
Both Koh and Silva are named as defendants in Segarra's lawsuit, as
well as her former supervisor, Johnathon Kim.
Segarra was assigned to Goldman's legal and compliance divisions
from October 2011 until May 2012, and looked into three
controversial transactions related to Solyndra, Capmark and the
merger of El Paso and Kinder Morgan Inc <KMI.N>. At that point, Kim,
Silva and Koh fired her and had her escorted from the building by
security guards after weeks of disputes and pressure to change her
examination findings, the lawsuit said.
The case is Segarra v. The Federal Reserve Bank of New York et al in
the U.S. District Court for the Southern District Of New York, No.
(Reporting by Mica Rosenberg; editing by
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