September 16, 2021

Wall Street Journal: Elizabeth Warren Calls On Fed Banks to Bar Leaders From Stock Trading

Sen. Elizabeth Warren (D., Mass.) is calling on regional Federal Reserve Banks to set rules that would prevent their leaders from trading individual stocks, following recent disclosures that the chiefs of the Boston and Dallas banks actively traded stocks and other investments last year.

“The controversy over asset trading by high-level Fed personnel highlights why it is necessary to ban ownership and trading of individual stocks by senior officials who are supposed to serve the public interest,” Ms. Warren wrote in letters addressed to the leaders of the 12 regional Fed banks.

“I am therefore asking that, within 60 days, you impose a ban on the ownership and trading of individual stocks by senior officials at the Federal Reserve Bank of Dallas,” she wrote to the leader of that bank. “I am also asking that you impose strong and enforceable ethics and financial conflicts of interest rules for yourself and those that work for you at the Dallas Fed.” The other 11 letters, including the one to the Boston Fed, had similar language.


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By:  Michael S. Derby
Source: Wall Street Journal