Fed to ban policymakers from owning individual stocks, restrict trading following controversy
Source: CNBC
Responding to a growing controversy over investing practices, the Federal Reserve announced Thursday a wide-ranging ban on officials owning individual stocks and bonds and limits on other activities as well.
The ban includes top policymakers such as those who sit on the Federal Open Market Committee, along with senior staff. Future investments will have to be confined to diversified assets such as mutual funds.
Fed officials can no longer have holdings in shares of particular companies, nor can they invest in individual bonds, hold agency securities or derivative contracts. The new rules replace existing regulations that, while somewhat restrictive, still allowed officials such as regional presidents to buy and sell stocks.
These tough new rules raise the bar high in order to assure the public we serve that all of our senior officials maintain a single-minded focus on the public mission of the Federal Reserve, Fed Chair Jerome Powell said in a statement.
Read more: https://www.cnbc.com/2021/10/21/fed-to-ban-policymakers-from-owning-individual-stocks-restrict-trading-following-controversy.html
70sEraVet
(3,493 posts)Silly me.
riversedge
(70,187 posts)bucolic_frolic
(43,128 posts)They live in the financial world, they could be active traders. Their trading activities should be scrutinized for conflicts of interest. Also, they should be able to put their assets or their trades in a blind trust - hire professionals to do their business while they serve on the Fed. Limiting these people to mutual funds - code word, mostly, for index funds - is ridiculous. Furthermore, there are ETFs to take bets on anything you want. Not clear if mutual funds include ETFs. There are diversified ETFs, there are targeted ETF investments.
RainCaster
(10,866 posts)MichMan
(11,910 posts)RainCaster
(10,866 posts)So they need to have some rules before the world realizes how corrupt they have become.