Better Markets, an independent nonprofit promoting the public interest in financial markets, said it would welcome any action by the SEC investigating insider trading at the Fed.
On Oct. 6, Dennis Kelleher, co-founder, and President of Better Markets stated that a thorough, independent investigation by the SEC is so important.
He declared that the organization welcomes the SEC’s de facto confirmation of its pandemic trade investigation by many Federal Reserve officials.
Fed Executives Moving Millions
Earlier this week, it was reported that Federal Reserve Vice Chair Richard Clarida traded millions in and out of securities and mutual funds on Feb. 27, 2020, just one day before Fed Chair Powell issued an emergency pandemic statement.
It was also reported that Dallas Fed Chairman Robert Kaplan and Boston Fed Chairman Eric Rosengren also actively traded stocks and real estate assets as the central bank embarked on a sweeping bailout. Both Fed executives resigned in late September.
Anti-banking and anti-crypto Senator Elizabeth Warren was particularly furious and sent a letter to SEC Chairman Gary Gensler earlier this week. As she has done with crypto recently, Warren pulled no punches:
“Reports of this financial activity by Fed officials raise serious questions about possible conflicts of interest and reveal a contempt for public trust. They also reflect atrocious judgment by these officials, and an attitude that personal profiteering is more important than the American people’s confidence in the Fed.”
The tip of the iceberg
Kelleher echoed the sentiment in his statement yesterday, adding “In addition to violating Fed policies, failing to demonstrate leadership and violating public trust by seeking to enrich themselves while their political actions have had an impact on the price of financial assets, and although apparently in possession of material non-public information, this trade may well have violated the law.
He added that people still have no idea if this trading by a handful of Fed leaders was just the tip of an iceberg of widespread insider trading.
Earlier this week, Gary Gensler said that “we, as an agency, are looking into the things that are brought to our attention,” but has neither confirmed nor denied any of the allegations.
Meanwhile, regulators and a number of hardline politicians still maintain that the crypto industry is the axis of evil when it comes to shady financial dealings.
