Oct 4 (Businesshala) – Senator Elizabeth Warren called on Monday the US Securities and Exchange Commission to investigate trading by top US central bankers, including two Fed Bank presidents who resigned after public outcry over their transactions Was.
In a letter to SEC Chairman Gary Gensler, Warren cited trading by Fed Vice Chairman Richard Clarida in February 2020, shortly before Fed Chair Jerome Powell issued a warning about the risks from the coronavirus and the need for But the Fed had promised a response.
“The reporting of this financial activity by Fed officials raises serious questions about a potential conflict of interest and reveals a breach of public trust,” Warren wrote in a publicly released letter. “If these trades were based on Fed officials’ knowledge of non-public, market moving information, they could potentially represent illegal activity.”
An SEC spokesperson declined to comment.
The Fed began its review of ethics and trading rules last month after it was revealed that Boston Fed President Eric Rosengren traded real estate securities and Dallas Fed President Robert Kaplan sold millions of dollars worth of individual shares last year. traded while the Fed defended. The US economy and financial markets with heavy purchases of treasuries and housing-backed bonds.
Both said they followed the Fed’s trading rules.
Rosengren quit his job last week, citing a kidney condition. Kaplan is due to go on vacation on Friday.
Clarida’s trading, reported late Friday by Businesshala News, involved selling between $1 million and $5 million of the bond index and buying the same amount of the stock index on February 27, Powell said in a statement. Said “developed” the day before. The risks to the US economy from the pandemic. The stock index declined sharply in value after the statement.
The Fed told Businesshala that Clarida’s transaction was a “pre-planned” rebalancing and selection of funds approved by the board’s ethics officer.
Warren called Powell a “dangerous man” last week and said he would oppose his reappointment because of what he sees as the weakening of bank oversight during his tenure.