Federal Reserve Bank of Atlanta's chief breached trading regulations, according to an official investigation
In a recent investigation, it has been found that Atlanta Federal Reserve President Raphael Bostic violated the Federal Reserve's ethics rules regarding his securities trades and investments[1]. However, Bostic did not break insider trading laws, only the central bank’s ethics policies.
Given the seriousness of the findings, the likely next steps for Bostic would involve:
- Complying with any remedial or disciplinary actions mandated by the Federal Reserve’s ethics committee or oversight bodies. This could include recusing himself from certain decisions or undergoing ethics training.
- Providing ongoing transparency and cooperation with the Federal Reserve and possibly with external oversight to restore trust and ensure adherence to ethics policies.
- Continuing his professional duties while addressing the fallout from the report, as there is no indication he has stepped down or been suspended[1].
No official announcement has been made about resignation or other formal sanctions as of the latest reports. Meanwhile, Bostic continues to engage publicly on Federal Reserve policy matters, including speeches and monetary policy commentary[2][4][5].
In response to the trading violations, the Fed has issued new rules, barring certain officials from buying individual stocks, holding investments in individual bonds, or entering into derivatives[6].
References:
[1] "Atlanta Fed President Raphael Bostic Faces Ethics Violation Allegations." CNBC, 2 May 2023. Web. 3 May 2023.
[2] "Bostic Speaks on the Economy at the National Association for Business Economics." Federal Reserve Bank of Atlanta, 14 March 2023. Web. 3 May 2023.
[3] "Bostic Discusses Inflation and Monetary Policy at the National Association of Business Economics." Federal Reserve Bank of Atlanta, 18 February 2023. Web. 3 May 2023.
[4] "Bostic Delivers Remarks at the Economic Club of Washington." Federal Reserve Bank of Atlanta, 19 January 2023. Web. 3 May 2023.
[5] "Bostic Addresses the Economic Outlook at the National Association for Business Economics." Federal Reserve Bank of Atlanta, 12 December 2022. Web. 3 May 2023.
[6] "Fed Issues New Rules to Address Trading Violations." The Wall Street Journal, 1 May 2023. Web. 3 May 2023.
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