Asleep at the Switch: New York Fed Faces Questions Over Policing Wall Street

From the New York Times’ Dealbook: As the Federal Reserve Bank of New York faced criticism for missing a multibillion-dollar trading loss at JPMorgan Chase, the regulator convened a town hall meeting in May to bolster employee morale.  Two months later, the New York Fed staff huddled again, after lawmakers questioned why the regulator had failed to rein in banks that manipulated key interest rates.

"We were told to keep our heads down and stay focused," said one person present at the July meeting who requested anonymity because the gathering was not public.

The New York Fed, whose weaknesses were first exposed when the financial crisis hit, is undergoing a new trial by fire as it grapples with how to police Wall Street. While the regulator has revamped its approach to overseeing the nation's biggest banks since the crisis, recent black eyes suggest that fundamental problems persist….

Read all about it at http://dealbook.nytimes.com/2012/07/24/new-york-fed-faces-questions-over-policing-wall-street/?ref=global

P.S. That's a shot of the Captain of the Titannic catching some zzs.  Really.