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Senator Elizabeth Warren (D-Mass.) Sent a letter to the Securities and Exchange Commission Monday calling on regulators to investigate “ethically questionable” transactions made by top Federal Reserve officials during the pandemic, resulting in the Pressure in a scandal that has already been carried out has increased up to two high-profile departures from the traditional financial institution.
The officials’ recently revealed trades “reflect a heinous judgment,” the senator said Monday.
Important facts
In the letter that was first from the. was reported Wall Street Journal, Warren said the SEC should determine whether Federal Reserve Vice Chairman Richard Clarida broke insider trading rules by switching up to $ 5 million into stocks and out of a bond fund in February 2020, just a day before the Fed chairman Jerome Powell announced that the central bank could intervene policies to support the economy.
She also said the regulator should investigate multi-million dollar stock trades made by Eric Rosengren and Robert Kaplan, former presidents of the Boston Federal Reserve Banks, respectively.
In the note, Warren alleged that the dealings violated Fed guidelines that officials should avoid doing business or other conduct that might “even give the appearance of a conflict” between personal interests and the public interest.
The senator, who pointed out that officials may have broken the law by acting on “non-public, market-moving information,” said the reported activity raises “serious questions about potential conflicts of interest” and “shows disregard.” “Up for public trust.”
Fed and SEC spokesmen did not respond immediately Forbes’ Request for comments.