Federal Reserve changes
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The Federal Reserve said Thursday that it is reviewing its policy on how senior executives can participate in the financial markets, thereafter. unrelated-interest questions was promoted because of the finances of two regional presidents.
Fed Chairman Jay Powell ordered a review last weekend following reports that Robert Kaplan, President of Dallas Fed, and Eric Rosengren of Boston traded and traded last year at a time when the central bank was pushing hard to find markets.
Kaplan revealed this month that he owns more than $ 1m in 27 publicly traded companies, stocks and other channels, which was first reported by The Wall Street Journal. Rosengren listed for $ 151,000 in four real estate businesses.
All Fed executives announced last week that they would sell their shares at the end of the month and keep their earnings in cash or book them in various colors to avoid “exposure” to conflicts of interest.
He also said that they should refrain from selling stocks as long as they stay in their place.
“Given the confidence of the American people and the need for the Federal Reserve to carry out our important work, President Powell at the end of last week called on the federal government to reconsider its financial management policy with top Fed officials,” a Fed spokesman said Thursday. to enforce the rules and regulations. “
The rules governing how money is managed by central banks are similar to other government agencies, the Fed said. There are also more “strict” rules than those used in Congress and other institutions.
“The board will change, if necessary, and any changes will be added to the Reserve Bank’s rules of procedure,” a Fed spokesman said.
U.S. Senator Elizabeth Warren of Massachusetts also lashed out at Thursday, urging 12 regional banks to adhere to stricter rules on stock trading.
“This debate over the sale of goods by high-level individuals in the Fed shows why it is necessary to restrict the sale and sale of all kinds of shares by officials who are supposed to help the people,” said the Democratic senator.
“Regional executives should restrict ownership and sale of shares with officials, and establish appropriate and unlawful laws on their interests so that they too can regain public trust.”