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Fed has new rules: leading US central bankers are no longer allowed to buy shares

2021-10-21T22:35:02.611Z

Top employees of the US Federal Reserve will no longer be allowed to purchase shares in individual companies. The Fed had previously come under fire for the financial conduct of two managers.



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Fed Chairman Jerome Powell (archive image)

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Susan Walsh / AP

Top US central bankers will no longer be allowed to buy shares in individual companies.

The Federal Reserve enacted new rules for the financial market operations of its senior members on Thursday.

Accordingly, bonds from individual companies are also taboo.

For transactions that are still permitted, the Fed members must obtain prior approval and generally hold their investments for at least one year.

"These tough new rules are setting new standards to reassure the public we serve that all of our senior officials are focused solely on the Federal Reserve's public mandate," said Federal Reserve Chairman Jerome Powell.

Even the appearance of a conflict of interest should be avoided when it comes to the timing of investment decisions.

About six weeks ago reports on the financial market activities of senior Fed members caused outrage.

Two of the twelve presidents of regional Fed branches resigned in this context.

It was about their investments in 2020, when the Fed tried to mitigate the effects of the corona pandemic with massive economic aid.

sol / dpa / Reuters

Source: spiegel

All business articles on 2021-10-21

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