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January 10, 2022

Vice Chairman Clarida’s Resignation Confirms There Is an Epidemic of Ethical and Legal Violations at the Highest Levels of the Federal Reserve

FOR IMMEDIATE RELEASE
Monday, January 10, 2022
Contact: Doug Walker at 202-618-6430 or dwalker@bettermarkets.com

WASHINGTON, D.C.— Dennis Kelleher, Co-founder, President, and Chief Executive Officer of Better Markets, issued the following statement in response to the announced resignation of Federal Reserve’s Vice Chair Clarida:

“Federal Reserve Vice Chair Richard Clarida’s conduct in seeking to personally profit during the pandemic and then apparently attempting to hide if not lie about it is shocking and made him unfit to hold office.  However, given that he is the third senior Fed official to resign due to possible insider trading during the pandemic, it is increasingly clear that there is an epidemic of ethical and legal violations at the highest levels of the Federal Reserve.

“Chairman Powell, who also traded his personal accounts during the pandemic, must stop the stonewalling and cover up of this widespread misconduct.  He must immediately publicly disclose all the information regarding anyone at the Fed who traded while in possession of material nonpublic information.  He must also publicly call for thorough investigations by the SEC and the Department of Justice. Resignations cannot serve as an excuse to forego investigations and hold those who violated policies and the law accountable.

“There is no reasonable dispute that this conduct violated the Fed’s many explicit anti-trading policies, which were clearly applicable throughout the pandemic as detailed here.  That’s why the Fed’s ethics officer warned the Fed’s senior officials in writing in March 2020 not to trade, as reported here.  Nevertheless, the Chairman has minimized if not exonerated the trading, inaccurately and misleadingly blaming outdated Fed policies.  Clarida’s resignation proves how grossly insufficient and empty his words really were.  The Chairman must take decisive action to restore – and deserve – the public trust because the Fed now risks permanent damage to its reputation.”

For further information, see:

Everything You Need to Know About the Federal Reserve Trading Scandal

Everything You Need to Know About the Fed’s Ongoing Cover Up

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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.org.

Richard Clarida
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