By Ann Brown
The Federal Reserve has taken action against its top officials following a series of scandals involving possible insider trading by banning senior staff and policymakers from owning individual stocks and bonds and restricting trading.
The central bank pledged to also increase the frequency of reporting and public disclosures.
In September, two of the 12 regional Federal Reserve Bank presidents resigned following disclosures about their stock activity in 2020 that triggered concerns about insider trading. Eric Rosengren, president of the Boston Federal Reserve, retired early after 14 years in the post, citing health problems. Just hours after Rosengren’s announcement, Robert Kaplan, president of the Dallas Federal Reserve Bank, said his last day would be Oct. 8, Reuters reported.
Critics say that Fed policies helped elevate stock prices and benefited richer Americans, including Rosengren and Kaplan. They bought and sold stocks at a time when the central bank’s policies were designed to improve market functioning, particularly during the covid-19 crisis, CNBC reported.
Under the new rules, 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, CNBC reported.
“These tough new rules raise Click here to read entire article