Collaboration 🔍

Table of Contents

Collaboration

The Federal Reserve said it is collaborating with the Office of Inspector General on an investigation of trades made last year by central bank employees to see if they were ethical and legal.

After a series of financial reports revealed that Vice Chair Richard Clarida, Dallas Fed President Robert Kaplan, and Boston Fed President Eric Rosengren all made sizable trades in 2020, the inclusion of the Inspector General’s office adds to the developing debacle at the Fed.

The trades, some of which were worth millions of dollars, attracted attention from Congress and raised concerns that central bank employees were trading on insider information as the Fed took unprecedented steps to help the US economy recover from the pandemic.

The public outcry and heightened scrutiny of Fed trading began in early September when it was revealed that many Fed employees had purchased and sold financial assets while working on emergency liquidity measures to help preserve the US economy.

According to the documents, Kaplan made numerous trades valued at $1 million or more in 2020. Rosengren traded real estate while working to acquire mortgage-backed securities with other Fed officials. Both Kaplan and Rosengren quit last week in the wake of the public outcry, but Rosengren claimed health problems as the reason for his early departure.

Are you for or against more regulations to prevent Fed officials from trading? Do you think Fed officials should be allowed to trade securities?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Higher Rate Households 📈

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.