Fed governor divesting stock bought by spouse in violation of trading rules
By Michael S. Derby
Oct 31 (Reuters) -Federal Reserve Governor Adriana Kugler, the newest of the U.S. central bank's seven board members, has run afoul of new ethics rules governing how officials and their families can trade and invest after her spouse bought stock in Apple and another company without her knowledge this summer.
In a government filing dated Oct. 24, Kugler reported the planned divestiture of Apple AAPL.O and Cava Group CAVA.N shares purchased by her spouse. Fed ethics rules sharply limit how the central bank's officials and senior staff can invest their personal funds and require trading to be pre-cleared by central bank ethics officials. Those rules also cover spouses and minor children of top Fed staff.
The purchases "were carried out by my spouse, without my knowledge, and I affirm that my spouse did not intend to violate any rules," Kugler said in the financial disclosure form. "Upon learning about the purchases, I immediately notified ethics officials, and at their direction, I initiated divestiture of these assets as soon as possible under (Federal Open Market Committee) ethics policies."
The four sets of stock purchases happened over the summer, and each purchase amount ranged between $1,001 and $15,000.
In a statement, a Fed spokesperson said "we can confirm that (Kugler) did alert the ethics office and acted at their direction, and in accordance with our policies."
The current Fed ethics rules were put in place in early 2022 after a series of controversies over the personal investing activities of some policymakers.
The first involved the investing activities of the heads of the Fed's regional banks in Boston and Dallas, and both left their posts in the fall of 2021. In a report early this year, the Fed's Office of Inspector General, its in-house watchdog, rapped the two regional Fed bank chiefs for creating the appearance of a conflict of interest.
Meanwhile, Fed Chair Jerome Powell and former Vice Chair Richard Clarida were cleared of wrongdoing by the watchdog.
Atlanta Fed President Raphael Bostic has also faced trouble over his personal investing. In September, the Fed watchdog said Bostic had broken rules then in place and had created the appearance that he acted on confidential information and the appearance of a conflict of interest.
Bostic had traded in periods that were off limits, but the watchdog also found no evidence he had used confidential Fed information to govern his investing. The finding on Bostic is widely believed to be the final report on Fed officials' trading.
The process of tightening up loose ends around the new ethics system and ensuring compliance is ongoing. At the start of this month, the OIG flagged a range of work the central bank is still engaged in, including ways to ensure the accuracy of disclosures.
Reporting by Michael S. Derby; Editing by Paul Simao
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
