THE BURNED OVER DISTRICT

How about the response of Sens. Warren of MA and Brown of OH to the revelations by former Fed bank examiner Carmen Segarra of the cozy relationships between the Fed and the banks they are supposed to regulate.

U.S. Senator Elizabeth Warren called for a congressional investigation into allegations that the Federal Reserve Bank of New York had been too deferential to the institutions it regulated.

“Congress must hold oversight hearings on the disturbing issues raised by today’s whistle-blower report when it returns in November -- because it’s our job to make sure our financial regulators are doing their jobs,” Warren, a Massachusetts Democrat and member of the Senate Banking Committee, said in a statement today.

The radio program “This American Life” today released the transcript of a broadcast that includes excerpts of conversations it said were secretly recorded by Carmen Segarra, a former New York Fed bank examiner who was fired in 2012, with some of her colleagues and her supervisor.

In the transcript, Segarra described how she felt that her Fed colleagues were afraid of Goldman Sachs Group Inc. and handled it with kid gloves.

“What I was sort of seeing and experiencing was this level of deference to the banks, this level of fear,” she said.

The New York Fed said it “categorically rejects” Segarra’s allegations.

“The New York Fed works diligently to execute its supervisory authority in a manner that is most effective in promoting the safety and soundness of the financial institutions it is charged with supervising,” it said in a statement posted on its website today.

Senator Sherrod Brown, an Ohio Democrat who’s also on the banking committee, backed Warren’s call for a probe.

“These allegations deserve a full and thorough investigation, and American taxpayers deserve regulators who will fight each day on their behalf,” he said in a statement.

And why vote Democratic you ask? Because if the Republican/Teabaggers win control of the Senate for their corporate masters, this issue will be buried so deep, some poor Chinese will wonder who dug a whole in their backyard.