Scandal at the FED: two presidents resign for “Ethical problems”, that is Trading

A scandal hits the Federal Reserve and forces two presidents, members of the FOAMC, to resign .

Dallas Fed Chairman Robert Kaplan resigns with effect in the near future, according to a central bank announcement that came hours after news that Boston Fed head Eric Rosengren would be stepping down soon "For Health Reasons" .

Both regional presidents were forced to step down after financial information showed intense trading activity last year, attracting strong criticism about the two senior officials' mingling of interests.

“It has been a great honor to serve as president and chief executive officer of the Federal Reserve Bank of Dallas for the past six years and to work with the bank's highly talented professionals who are helping build a stronger economy for all communities in the Eleventh District and our nation, ”Kaplan said in a statement accompanying the announcement of his departure on October 8.

He added: “During my tenure, I have adhered to all of the Federal Reserve's ethical standards and policies. My securities investment activities and disclosures have complied with the bank's compliance rules and standards. "

In announcing Rosengren's retirement earlier in the day, the Boston Fed said in a statement that “In a message to the Bank's staff, Dr. Rosengren first revealed that he qualified for the kidney transplant list in June 2020, during the pandemic. , after the worsening of a kidney condition he has had for many years ”, stating that“ the delay in needing dialysis could be improved if he now made lifestyle changes to reduce the risks of his condition ”. A very timely event ..

Rosengren was supposed to retire in nine months, but will now retire Thursday after 35 years at the Boston Fed. Kaplan was a senior associate dean at Harvard Business School before joining the Dallas Fed.

Although neither Kaplan nor Rosengren broke any of the rules that Federal Reserve officials must comply with, their operations attracted the attention of lawmakers, also because it is evident that, by manipulating monetary policy and knowing its evolution, they could anticipate the market. and reap strong profits. No FED rule forbade him, so much so that Jerome Powell, the governor, immediately recalled the need to change the legislation for the highest officials. Who, evidently, have strong personal interests ..

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The article Scandal at the FED: two presidents resign for "ethical problems", ie Trading comes from .

This is a machine translation of a post published on Scenari Economici at the URL on Tue, 28 Sep 2021 07:00:25 +0000.