WASHINGTON, D.C.— Dennis Kelleher, Co-founder, President and Chief Executive Officer of Better Markets, released the following statement in connection with a letter Better Markets sent to the Chairman of the Federal Reserve, Jay Powell, regarding the trading by senior Fed officials during the pandemic:
“Better Markets sent a letter to Fed Chair Jay Powell insisting that the Fed immediately disclose (1) all officials and staff who had access to material nonpublic information and who traded during the pandemic, and (2) all documents related to any review, approval and/or denial of any such trading. The public has a right to know if the few who have already been publicly identified are just the tip of the iceberg or the entire universe of those who engaged in pandemic profiteering trading. In addition, the Chair must request that the Department of Justice, the Securities and Exchange Commission and the Fed Inspector General conduct investigations into whether any such trading violated the laws relating to conflicts of interest, insider trading or otherwise.
To seek to profit from such trading while hundreds of thousands of Americans were dying and tens of millions were being thrown out of work is a shocking violation of the public trust. For Fed officials to do that while the Fed was flooding the financial system with trillions of dollars and engaging in unprecedented, historic actions to prop up virtually all financial markets and profits presents at least the appearance of a conflict of interest if not an actual conflict and/or trading based on inside information.
“No internal Fed investigation will have any credibility, particularly in light of the Fed’s failed internal investigation of former Richmond Fed President Lacker’s leak of confidential information and because numerous Fed officials have already prejudged the pandemic trading here, exonerating everyone before any investigation. No internal investigation whitewash or coverup will be acceptable. The public deserves a thorough, independent investigation, the details and results of which must be publicly disclosed.”
Better Markets is a non-profit, non-partisan, and independent organization founded to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.