Financeethics News

"Watchdog Report Criticizes Ex-Fed Officials in Stock Trading Controversy"

A watchdog report from the Federal Reserve's Office of Inspector General criticizes former high-ranking officials Robert Kaplan and Eric Rosengren for engaging in stock trading that created conflicts of interest and raised questions about their impartiality. While the report did not find evidence of illegal activity, it faulted Rosengren for not disclosing multiple trades and noted discrepancies in his trading data, while faulting Kaplan for lack of specific disclosure. The controversy has led to the Fed revamping its trading rules to prohibit officials from owning stocks, bonds, and cryptocurrencies in order to maintain public confidence in the integrity of the Committee's work.