Senator Warren Wants SEC to Investigate Fed Reserve Execs on Stock Trades
Posted on 10/04/2021
On October 4, 2021, U.S. Senator Elizabeth Warren prodded the U.S. Securities and Exchange Commission (SEC) to investigate whether three Federal Reserve executives violated insider trading rules. Warren requested on SEC Chair Gary Gensler to look into “ethically questionable transactions” made by Federal Reserve Vice Chair Richard Clarida and regional Presidents Robert Kaplan and Eric Rosengren. Clarida is a key deputy to Federal Reserve Chairman Jerome Powell.
“I am writing to ask that the SEC investigate trading in securities by high-level Federal Reserve officials and determine if any of these ethically questionable transactions may have violated insider trading rules,” Senator Warren wrote in the letter.
A Federal Reserve spokesman disclosed that Clarida’s 2020 trades were made public in May 2021 and in accordance with a “preplanned rebalancing” of his accounts.
Keywords: Federal Reserve System.