TL;DR: The Federal Reserve restricts trading by senior officials under new rules that look great on the surface, but will probably have virtually no effect in the long run, and is just yet another way for the elites to pull the wool over the eyes of the public whilst they carry on lining their own pockets forever.
The Fed says it will ban policy makers and other senior officials from buying individual stocks and bonds and will also restrict active trading after an ethics scandal led to the departure of two regional presidents and undermined confidence in the central bank.
Eric Rosengren, the president of the Federal Reserve Bank of Boston, and Robert Kaplan, the president of the Dallas Fed stepped down, with Kaplan saying he was doing it to ensure he didn’t become a “distraction” from the Fed’s broader mission. Which basically looks like he was pushed and encouraged to do a bit of face-saving before he went, probably with a massive golden handshake.
Though the investments by Rosengren and Kaplan were technically permitted under the Fed’s rules, they raised at least the appearance of conflicts of interest, which Fed policy (allegedly) discourages. But as we all know, the Fed is a very nice institution that would never do anything which is contrary to the needs and wishes of the general public at large. Nope. Never.
Sen. Elizabeth Warren criticized the trades and called for a ban on stock ownership by Fed officials, but she stopped short at saying that lawmakers (like herself, the 18th richest in the Senate) should also be barred from trading. If anyone is interested, here is a link to Open Secrets, which details Senator Warren’s declared finances.
Federal Reserve restricts trading by Senior Officials – but what about their families?
Senior Officials will be restricted primarily to only owning mutual funds, which will have to be held for at least 1 year, and will require permission to buy and sell, with 45 days prior notice.
The Federal Reserve announced Thursday a wide-ranging ban on officials owning individual stocks and bonds and imposed limits on other activities as well.
The ban includes top policymakers such as those who sit on the Federal Open Market Committee, along with senior staff. Future investments will have to be confined to diversified assets such as mutual funds.
Fed officials can no longer have holdings in shares of particular companies, nor can they invest in individual bonds, hold agency securities or derivative contracts. The new rules replace existing regulations that, while somewhat restrictive, still allowed officials such as regional presidents to buy and sell stocks.
But the ban doesn’t seem to include family members of the senior officials, but nobody would dream to suggest that these very same heads of monetary policy in the USA would simply let their spouses and children do the trading on their behalf would they? Nope. that’s never happened before and we are sure no senior person in authority would ever do dodgy things, like take bungs, using family members. Right?
These tough new rules raise the bar high in order to assure the public we serve that all of our senior officials maintain a single-minded focus on the public mission of the Federal Reserve,Jerome Powell, Federal Reserve Chairman
What about Nancy?
However, House Speaker Nancy Pelosi, who it appears must be one of the United States top investors at the moment, won’t be banned from trading, and has been repeatedly called out for the investments she and her husband are making, which many (but not of course, that would be wrong) are arguing look an awful lot like insider trading from people deeply connected at the highest level of government and finance.
And she’s not the only one. It seems a great many lawmakers, some of which who sit of financial committees, which aren’t remotely instrumental of course in shaping monetary policy, are all trading and doing very well, thank you very much. So much so that an outside ethics group filed complaints against a number of legislators in September under the STOCK act.
But just to give everyone a good idea of just how good a trader Nancy and her husband are, the graphic below tells all (didn’t she do well…. how could she possibly have known?):
This is not financial advice. Facts are irrelevant. This is news combined with satire. Isn’t all the news? Ken Griffin Lies makes no guarantees of the accuracy of anything on this site.