Richmond Fed President Lacker Resigns After Admitting He Leaked Confidential Fed Information

Tyler Durden's picture

We can now close the case on who leaked that confidential, market-moving data to Medley global back in 2012: it was Richmond Fed's Jeffrey Lacker, who previously was expected to retire in October, and  is resigning immediately.

In a statement, Lacker confirms he revealed confidential FOMC information to Medley Global and that he lied to the Fed's general counsel on at least two occasions. His full statement is below:

Statement Of Dr. Jeffrey Lacker


During the past 13 years it has been my privilege to serve as President of the Federal Reserve Bank of Richmond. It has also been an honor to contribute to the development of our nation's monetary policy as a member of the Federal Reserve's Federal Open Market Committee ("FOMC").


While transparency of the monetary policy process is important, equally important are the confidentiality policies that protect the internal deliberations of the FOMC and ensure the integrity of our financial markets. The Federal Reserve's confidentiality policies seek to guide participants in maintaining the balance between transparency and confidentiality. The FOMC has had in place for many years two specific policies relating to confidentiality. the FOMC Policy on External Communications of Committee Participants (the "External Communications Policy-) and the Program for Security of FOMC Information (the "Information Security Policy").


In 2012, my conduct was inconsistent with those important confidentiality policies. Specifically, on October 2, 2012, I spoke by phone with an analyst ("the Analyst") concerning the September 2012 meeting of the FOMC. The Analyst authors reports on Federal Reserve matters on behalf of Medley Global Advisors ("Medley'). Medley publishes macro-economic policy intelligence for institutions such as hedge funds and asset managers and is owned by the Financial Times Limited.


During that October 2, 2012 discussion, the Analyst introduced into the conversation an important non-public detail about one of the policy options considered by participants prior to the meeting. Due to the highly confidential and sensitive nature of this information, I should have declined to comment and perhaps have ended the phone call. Instead, I did not refuse or express my inability to comment and the interview continued. Additionally, after that phone call I did not, as required by the Information Security Policy, report to any FOMC personnel that the Analyst was in possession of confidential FOMC information. When Medley published a report by the Analyst the following day, October 3, 2012, it contained this important detail about one of the policy options and I realized that my failure to decline comment on the information could have been taken by the Analyst, in the context of the conversation, as an acknowledgment or confirmation of the information.


I deeply regret the role I may have played in confirming this confidential information and in its dissemination to Medley's subscribers. In this episode, as in all of my communications with analysts, journalists and the public, it was never my intention to reveal confidential information. I further acknowledge that through this and other conversations with the Analyst, I may have contravened the External Communications Policy, which prohibits providing any profit-making person or organization with a prestige advantage over its competitors.


Following these events, I was interviewed on December 10, 2012, as part of an internal review conducted by the General Counsel of the FOMC. In advance of that interview, on December 6, 2012, I provided written responses to a questionnaire issued by the General Counsel seeking, among other things, all relevant information regarding my communications with the Analyst. Althoug it was my intention to cooperate fully with the internal review, I regret that I did not disclose to the General Counsel, either in my December 6, 2012 questionnaire or the December 10, 2012 interview, that the Analyst was in possession of confidential information during my conversation with her on October 2,2012.


In 2015, I was interviewed again as part of a separate investigation conducted by the United States Attorney's Office for the Southern District of New York, the Office of the Inspector General of the Federal Reserve Board, the Federal Bureau of Investigation, and the U.S. Commodity Futures Trading Commission. In this subsequent 2015 interview with law enforcement officials, I did disclose that the Analyst was in possession of confidential information during my October 2. 2012 conversation with her.


I apologize to my colleagues and to the public I have been privileged to serve. I have always strived to maintain the appropriate balance between transparency and confidentiality, but I regret that in this instance I crossed the line to confirming information that should have remained confidential. I previously announced my intention to retire as President of the Federal Reserve Bank of Richmond in October 2017, and in light of these matters I have decided to make my departure from the Federal Reserve effective today.

The Richmond Fed made the following announcement moments ago, which suggests that Lacker did not leave voluntarily:

The Federal Reserve places a high priority on safeguarding information. We expect every employee to comply with all relevant policies and procedures, as well as our standards of conduct. Employees must review and acknowledge our policies annually. Once our Bank’s Board of Directors learned of the outcome of the government investigations, they took appropriate actions.


We are focused on moving forward within our organization—and were already underway with our presidential search, following Jeffrey Lacker’s announcement in January to retire in 2017. This search process will continue as scheduled. In the interim, First Vice President Mark Mullinix is serving as the Bank’s acting president.

This shocking event comes just hours after Chairman of the House Financial Services Committee Jeb Hensarling demanded that "American Households Should Demand a More Reliable Governance Structure for the Fed."

As CNBC's Steve Liesman adds, Lacker's resignation was the result of negotiations with law enforcement officials.

While that does not make it clear if Lacker will now not face criminal prosecution for leaking material information - recall the FBI has been probing the Fed's 2012 leak to Medley since 2015 - this is great news for Janet Yellen, who was personally close with Medley's Regina Schleiger, ther person at the center of the Fed leak scandal, as the Fed Chair is now off the hook.

Or maybe not: while Lacker has taken blame for the Medley leak from October 3, 2012, recall that the Fed was also investigating a second leak, involving a September 28, 2012 article in the WSJ by Jon Hilsenrath titled "How Bernanke Pulled the Fed His Way" in which Bernanke's planning to launch QE3 was described in great detail.

As the Fed revealed in a FOIA seeking information on the internal probes, the WSJ leak is ongoing:

One article was published in the Wall Street Journal (WSJ) on September 28, 2012, and appeared to disclose information about discussions of Committee participants around the June, August and September, 2012, FOMC meetings in apparent violation of the FOMC’s policies regarding security of FOMC information. In particular, this first article included:

  • Descriptions of the non-public views of some participants that appeared to have been disclosed by other participants. (As described below, all participants are permitted to disclose their own views about monetary policy, but participants are not permitted under the FOMC’s policies to describe the views of another participant unless that participant has already expressed those views publicly.)
  • The number of policy alternatives considered by the Committee at its September meeting.
  • The roles of various participants in the policy development.

As for who will replace Lacker, Trump will surely have some thoughts on that, as Lacker's seat becomes a voting one in 2018.

* * *

Update: No charges will be brought against Lacker.

No further comment, although maybe Ben Bernanke can blog about it one day.

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souljaboy's picture

That's some fucked-up shit right there.

knukles's picture

Jesus H Fucking Christ.  Drain the swamp.  Quickly, please.

froze25's picture

Don't worry we can trust his replacement and all other people in positions like his. Clearly a "lone wolf" is you will.

knukles's picture

Second tell of problems.

Now they're (Richmond) looking for a new El Presidente.
I've never had faith in an organization that's not had a succsssion hierarchy already in place.
Means poor management

abyssinian's picture

Resign?  Go straight to jail!  All Fed officials are major criminals... all of them

froze25's picture

@Knuckles, yes poor management but really its a sign that they don't ever think they will not be in the position of power. We see it alot in local Gov't where the "old Guard" gets pretty damn old (think late 80's) refuses to get new blood in the mix, give up a little power for the good of the party and the opposition party capitalizes on it.

BaBaBouy's picture

DONALDO ... How About the Whole FED Resigns and We hold FREE ELECTIONS to the FED ???

BullyBearish's picture

Don't count on the fbi...the last time they did anything good Efrem Zimbalist Jr. was an agent...

PrayingMantis's picture

... Lacker the leaker lacked decency ... his life at the Richmond Fed is like toilet paper, he was on a roll until he took some shit for some asshole and had to be replaced ...  ;)


847328_3527's picture

It's ok. None of these Big Finanaical Thugs goes to jail anymore.


Only the little people are cuffed, arrested and thrown in jail.

glenlloyd's picture

Do we get to use a guillotine yet?

JRobby's picture

Fascism - Corporate Oligarchy - Corporate Fascism

mbutler101's picture

petition? LMAO. How about promotion to one of Goldman Sach's open positions...

Dorado's picture

Yes....approximately as effective as writing your congressman or woman which is to say not at all.  Damn it though, we won't have a turning point until one of these folks actually gets thrown in jail.  The application of the penalties under the law needs to go all the way up the foodchain.  One can hope.

Joe Davola's picture

So it took 1.5 years after fessing up to the DA for him to resign.  The fear of country club prison must have gotten to him, because the fear of government accountability certainly hadn't phased him since 20-freaking-12!

Fiberton's picture

The government would have a hard time as the statue of limitation limits on most things would be up already.  And in 6 months it will have been 5 years and that kills ANY possible charges of anything. It takes the government a year to do anything so doubtful anything happens.

TeethVillage88s's picture

Froze25, Knucks,... people live longer today... we know all people face struggles with corruption, Vice, Sinning in their hearts, sexual improprieties, blackmail-able situations...

Any lifetime appointee should be replaced with 15 year appointment max. And this would be a good start on the monopolies of US Congressmen & Senators... Max 15 years means 2 Senate Terms Maximum (6 Years X 2 = 12 Years).

greenskeeper carl's picture

Come on sessions, fullest extent of the law. Make an example, pour la encouragar le autres as Voltaire would say. It's long over due.

souljaboy's picture

Sessions is out personally busting people with less than one gram of pot. He don't have the time.

chunga's picture

I believe Sessions has recused himself from all matters involving law and law enforcement. With all the fake hoopla over the "drain the swamp" slogan he comes out swinging for private prisons and picking fights over state's rights.

So far out of all Trump's picks he's been the biggest dud. The second biggest dud is Koskinen at IRS. Trump didn't pick the guy he just didn't replace him.

garcam123's picture

It's coming clear that our political system has reached the total clown car state as everyone is out for thier own personal agenda and everyone else be damned.  We're down to rats scurring for scraps now..........implosion in 3 - 2- 1 months.  They are going to kill Trump and put Pudding Pence securely in the barrel asshole perfectly aligned and he will be smiling and completing the treasonious fucking the stupid American people are getting from our "ruling class".


Mr. Universe's picture

Your premise is not so unbelievable.

GUS100CORRINA's picture


Judges 21:25

25 In those days there was no king (in the nation); everyone did what was right in his own eyes.

Zorba's idea's picture

"Corruption has just become the new normal"???  With all due respect, Corruption has been normal for quite some's only recently that it has become "up to our eyeballs" thanks to the internet of things and independent journalism exposing much of what has been hidden in plain sight.  It will all end when the CIA run Msm's narrative is no longer able to alter the peoples reality. We are moving closer to this watershed event. IMO, The Truth deficit will be discharged long before our nation's debt bomb.

Blue Balls's picture

How do these bastards at the Fed get away without audit? 

1.  Audit the Fed.

2.  Hang everyone who is a partial owner.

3.  Donate all property and stolen wealth to the victims of Zionism.

The Wizard's picture

No need to audit. Just get rid of it. The question is where to we find responsible honest people to manage the monetary system. They are out there but they would not fit in well with most of the politicians. There are a few like Rand Paul, Tom Massie, Jordan, etc that I could trust.

sgt_doom's picture


That Mishkin, and Greenspan and Geithner (head of the NY Fed when $8.7 billion in Iraqi oil funds, supposed to have been kept on account there, went missing.  And the managing director from JP Morgan Chase who oversaw that contract?  Timmy's BFF from college, Daniel Zelikow.  My oh my, the world is a really small after all!), Bernanke and that one presently head of the Fed who sounds like Donald Duck, Yellen, are all of the highest caliber!

JRobby's picture

Mishkin had to "update a textbook", his excuse for quitting just before the SHTF. He can't even speak a coherent sentence much less write one.

On a technical economic concept? (Laugh Track Deafening !!!!)

francissba's picture

Hey Knuckles   Who are the fucktards that gave you 5 down votes?  There are 11 Fed governors.  Someone isn't doing their part.  LOL  

BTW  I plan to run for Lacker's vacated seat.  

They won't have to pay me because I make $7000 a month working from home.

But being a recovering banker who hates these demented cocksukers, should it be the decision of the governors to make me the president of the Richmond Fed I promise to royally, truly and totally fuck things up so bad that it would destroy the Fed. It would be my pleasure to do so.

Maybe I can even sneak in a really bitchin wedgie on Janet


Bay of Pigs's picture

Hey buddy, back in Maui again.

Thailand is looking better to live full time more and more. I'm burned out on the USA and these shitbirds who rule over us. This country has gone literally full retard.

TeethVillage88s's picture

Political Appointees:

The current members of the Board of Governors are as follows:[5]

Governor Entered office[6] Term expires
Janet Yellen
(Chair) February 3, 2014 (as Chair) February 3, 2018 (as Chair)
January 31, 2024 (as Governor)
Stanley Fischer
(Vice-Chair) June 16, 2014 (as Vice-Chair)[7] June 12, 2018 (as Vice Chair)
January 31, 2020 (as Governor)
Daniel Tarullo January 28, 2009 January 31, 2022
Jerome H. Powell May 25, 2012 January 31, 2028
Lael Brainard June 16, 2014 January 31, 2026


2017 Committee Members

Janet L. Yellen, Board of Governors, Chair
William C. Dudley, New York, Vice Chairman
Lael Brainard, Board of Governors
Charles L. Evans, Chicago
Stanley Fischer, Board of Governors
Patrick Harker, Philadelphia
Robert S. Kaplan, Dallas
Neel Kashkari, Minneapolis
Jerome H. Powell, Board of Governors
Daniel K. Tarullo, Board of Governors

Alternate Members

Marie Gooding, First Vice President, Atlanta
Jeffrey M. Lacker, Richmond
Loretta J. Mester, Cleveland
Michael Strine, First Vice President, New York
John C. Williams, San Francisco

Well... JEFFREY M. LACKER is an Alternate this year (2017).

- Serves them to switch members and keep us confused

who might be responsible and held accountable?

Office of the Comptroller of the Currency, John C. Dugan, John D. Hawke
Treasury Secretary, Jack Lew, Timothy Geithner, Henry Paulson, John Snow, Larry Summers, Robert Rubin
FDIC Chairman, Martin J. Gruenberg, Sheila Bair, Donald E. Powell, Donna Tanoue
SEC Director, Mary Jo White, Elisse Walter, Mary Schapiro, Christopher Cox, William Donaldson, Harvey Pitt, Arthur Levitt
FINRA Directors, Mary Schapiro,
DOJ Director, Eric Holder
FBI Director, Robert Swan Mueller III, James B. Comey
President of the US, Barack Obama
Obama National Security Advisor >>>>Susan RICA<<<<
FOMC Members >>>Above<<<
Federal Reserve Board of Governors >>>Above<<<
All Sitting CONgress Members except those that prove voting record<<<
Previous Presidential Cabinets and their Agency Political Appointees >>>>But NO ONE EVER HOLDS POLITICAL APPOINTEES RESPONSIBLE FOR THE ECONOMY, JOBS, MIDDLE CLASS WEALTH, PENSIONS Health, NOR War Actions OR Covert Military Actions of our Agencies<<<<

1971, Nixon Shock, President Nixon consulted chairman Arthur Burns, John Connally, Paul Volcker.

QQQBall's picture

Oh come on. That should be at least a $5 fine!




UBS, Jr.

Fisherman Blue's picture

It's fucked up if he does not go to prision.

Hal n back's picture

how dumb can he be--he should have just lied like Rice, Obama, Hillary Bubba


tinfoilhat's picture

He's probably falling on his sword to protect Yellen. For what little legal slap on the wrist he will have to endure, he will be rewarded richly.

Dorado's picture

"Slap" aka retirement? Speculating but I suspect there is a dandy pension for these folks.

hannah's picture

lacker didnt have 'intent' so he is innocent.....

ImReady's picture

You caught that too did ya? Please ignore as he didn't intend to say he didn't intend to do it.... 

yogibear's picture

The Federal Reserve is beyond being scared of a real audit. They will try everything.

Banker Buster's picture

JAIL not resigned, JAIL.  Everyone who was involved needs to be charged with insider trading SEC and FBI.

Blankenstein's picture

THIS ^^^.  The whole network of conmen and thieves need to go to pound-me-in-the-ass prison.  If .gov doesn't start enforcing the laws with these 1%er crooks, when the SHTF there will be hell to pay for all involved.  

First, a reminder of just who Medley Global is:

MGA is the leading global provider of macro policy intelligence for the world's top hedge funds, institutional investors, and asset managers. Our services and global network cover G20 plus Emerging Markets, Central Banks & Geopolitics, Global Oil and Energy Markets.

In short: an "expert network" (remember those? that's how Stevie Cohen made his billions paying insiders for material, nonpublic information right under the nose of regulators and enforcers) that leaks Fed decisions and thoughts to its  top-paying clients, such as the report in question leaking the start of QE tapering in December 2012.


MFL5591's picture

This group should never have been trusted!  Disgusting man!

halcyon's picture

Standard practice. He knew the pension from this stint at Fed would not cover his lifestyle.

Medley global brown envolope deal to the rescue.

I'm sure he's laughing all the way to his Cayman Island bank.

Will never be prosecuted, gets slap on the wrist.

Sailing his Royal Huisman boat into the sunset while sipping on a glass of '28 Krug.

And the world keeps on turning. Another day, same shit. Tomorrow nobody remembers anymore, nobody cares.

Swamp just grows deeper, day by day.


SloMoe's picture

Claw-back and banned from taking a job at Goldman-Sachs?


Hahaha! Just kidding!

knukles's picture

He'll likely have serious penalty like having to write a letter to Travon's mom apologizing for Flint's water problem
Penance done, time to make partner at Goldilocks

moman's picture

Somebody get a rope.

Arnold's picture

Must've been on Rice's unmasking list.....

Old Muppet 1's picture

Nooooooo! My faith in this institution was previously unshakeable! What is left to beleive in!?