Fun

After Fed Members Disclose Million-Dollar Stock Trades Fed’s Powell Initiates Ethics Inquiry

News Feed - 2021-09-18 05:09:01

After Fed Members Disclose Million-Dollar Stock Trades Fed"s Powell Initiates Ethics Inquiry


The Federal Reserve chairman Jerome Powell has directed his staff to start an ethics inquiry into the financial activities of Fed members, as a number of senior central bank officials are being questioned for their investments. Reports indicated last week that the president of the Dallas Federal Reserve branch, Robert Kaplan, benefitted from “multiple million-dollar-plus stock trades” in 2020. Fed Presidents Profit From Multiple Million-Dollar Stock Deals


Members of the Federal Reserve seem to have a mess to deal with as politicians and the media have called out a few members of the Fed for benefitting from major stock deals. Bitcoin.com News has reported on critics looking directly at the Fed’s members and even accusations of Federal Reserve chairman Jerome Powell doing the same thing.


Last Tuesday, the Wall Street Journal (WSJ) published an article that revealed Dallas Fed president Robert Kaplan “made multiple million-dollar-plus stock trades in 2020, according to a financial disclosure form provided by his bank.” The New York Times followed as well with an article about Fed members and stock trading.


The media caught wind of the investments after Democrat senator Elizabeth Warren from Massachusetts sent letters to all of the Fed’s regional bank presidents. Warren also published a press release about the subject and scorns the “troubling reports.”


“Following troubling reports that two regional Federal Reserve Bank (Fed) Presidents made extensive stock trades in 2020 as the Fed took extraordinary actions to address the COVID-19 pandemic,” Warren’s press statement notes.


“This controversy over asset trading by high-level Fed personnel highlights why it is necessary to ban ownership and trading of individual stocks by senior officials who are supposed to serve the public interest,” Warren further declared in a statement. “Regional Fed leaders must ban the ownership and trading of individual stocks by senior officials, and impose strong and enforceable ethics and financial conflicts of interest rules for themselves and their staff to restore public trust.”


Now reports show Jerome Powell is getting involved and reports indicate the Fed chairman has ordered an ethics review. Discussing the subject with CNBC, an unnamed Fed spokesperson discussed the ethics inquiry into the stock trading activities conducted by senior officials.


The spokesperson said Powell has ordered a “fresh and comprehensive look at the ethics rules around permissible financial holdings and activities by senior Fed officials. Because the trust of the American people is essential for the Federal Reserve to effectively carry out our important mission.” The spokesperson further said: This review will assist in identifying ways to further tighten those rules and standards. The Board will make changes, as appropriate, and any changes will be added to the Reserve Bank Code of Conduct. Too Little, Too Late


Meanwhile, the well known wallstreetonparade.com journalists Pam Martens and Russ Martens published an article that highlights the “latest outrage over [the] Fed presidents’ trading stocks is just the tip of the iceberg.


The Martens detail that while Jerome Powell testified in Congress in 2020, and while Fed members knew “its every monetary move during the pandemic was on behalf of the average American, the Dallas Fed President is making million-dollar bets on big tech stocks the Justice Department is investigating for anti-trust activity.”


Moreover, the Martens also wrote that when two Fed presidents said they would sell their stocks, it was “too little, too late.” The scathing report on wallstreetonparade.com adds: Fed Presidents are privy to market-moving information that the general public is not privy to. That was especially true last year as the Fed took unprecedented measures to combat the economic impact of the pandemic. The Fed slashed the Fed Funds rate to zero, established a panoply of bailout programs for Wall Street, and began buying up $120 billion a month in Treasuries and mortgage-backed securities.


What do you think about Jerome Powell starting an ethics inquiry and the complaints aimed at the Fed’s senior officials making millions from stock trades? Let us know what you think about this subject in the comments section below. Nigerian Currency Plunges to New Low of 570 — 10% of Value Lost in Under 30 Days ECONOMICS | 14 hours ago Sources With Ties to Washington Say Joe Biden Will Renominate Fed Chair Jerome Powell ECONOMICS | 2 days ago Tags in this story anti-trust activity, Chairman, cnbc, code of conduct, Dallas Fed President, Democrat Senator, Elizabeth Warren, Ethics, Ethics Inquiry, Fed Chairman, Fed Presidents, Fed Spokesperson, Federal Reserve, jerome powell, justice department, Pam Martens, Robert Kaplan, Russ Martens, Stock Trades, wallstreetonparade


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Savannah Fortis13 hours agoSilk Road founder marks 10 years into his double life sentence in prisonRoss Ulbricht, the founder of the first “modern darknet market,” has reached the 10-year mark of his double life sent
Astar Network CEO: Webassembly Smart Contracts Are Going to ‘Pull a Lot of Talent From Web2 to Web3’
Astar Network CEO: Webassembly Smart Contracts Are Going to "Pull a Lot of Talent From Web2 to Web3" Ethereum is almost universally credited for kickstarting the Web3 revolution af
Regulatory Roundup: French Court Considers Bitcoin Money, Cryptocurrencies Legitimized in South Korea, Australia, India
Regulatory Roundup: French Court Considers Bitcoin Money, Cryptocurrencies Legitimized in South Korea, Australia, India The cryptocurrency sector worldwide saw several historic r
Polygon Deploys Fiat on-Ramps via Alchemy Pay, Enabling Direct Fiat Payments for DeFi
Polygon Deploys Fiat on-Ramps via Alchemy Pay, Enabling Direct Fiat Payments for DeFi sponsored Polygon, an Ethereum scaling platform onboarding millions to Web3, has announced the
US Government Has Seized Cryptocurrencies Worth $1.2 Billion So Far This Year
US Government Has Seized Cryptocurrencies Worth $1.2 Billion So Far This Year The U.S. government has seized cryptocurrencies worth $1.2 billion so far this year
Brayden Lindrea5 hours agoNew York finance regulator tightens crypto listing guidanceCrypto firms’ policies on coin listing and delisting must align with a list of standards set by the NYDFS.2087 Total views19 Total sh
US Law Enforcement Traces Bitcoin Transfers to Nab ‘Largest’ Child Porn Site
A U.S. federal grand jury indicted a South Korean citizen for operating the largest child porn site by volume, where visitors spent millions of dollars worth of bitcoin to pay for the illegal content.
Free-to-Mint NFT Collection Goblintown Is Now Worth Over $50 Million
Free-to-Mint NFT Collection Goblintown Is Now Worth Over $50 Million A non-fungible token (NFT) collection called Goblintown is capturing millions in sales, as the NFT project has
12 Defi Con Artists Exposed – Are Rug Pulling Incidents Threatening the Future of Defi ?  
12 Defi Con Artists Exposed – Are Rug Pulling Incidents Threatening the Future of Defi ?  The ongoing hype about the abnormally high returns from Defi tokens has naturally seen
CME’s Bitcoin Friday Futures launch with 31K contracts on day one
Ana Paula Pereira5 hours agoCME’s Bitcoin Friday Futures launch with 31K contracts on day oneCME’s new derivatives product allows market participants to hedge or speculate on Bitcoin price movements in the short term
Grayscale Buys 33% of All Bitcoin Mined in Last Three Months
Grayscale Buys 33% of All Bitcoin Mined in Last Three MonthsGrayscale Investments bought up to 33% of all newly minted bitcoin over the last three months, as the asset manager conti
Swiss State Secretariat Helps Blockchain Incubator Firm Set Up Base in South Africa
Swiss State Secretariat Helps Blockchain Incubator Firm Set Up Base in South Africa Switzerland’s State Secretariat for Economic Affairs (SECO) is reported