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Two Fed Presidents Resign In Disgrace; Are Powell And Pelosi Next?

quoth the raven's Photo
by quoth the raven
Monday, Sep 27, 2021 - 22:44

(Submitted by Quoth the Raven at QTR's Fringe Finance)

No sooner did I ask this morning whether or not Dallas Fed President Robert Kaplan would be joining Boston Fed President Eric Rosengren in resigning, than Kaplan did exactly that.

wrote this morning:

Rosengren’s prompt departure for “health reasons” can’t help but leave me wondering whether or not we are going to see additional departures from the Fed in the coming days. Robert Kaplan, are you next?

Embroiled in the controversy surrounding what can only be described as frequent daytrading amongst Fed Presidents, Robert Kaplan announced after the bell today that he would also be resigning.

Remember, Kaplan was reported to be an “active buyer and seller of stocks” in 2020, per the Wall Street JournalHe is also to reported to have purchased and sold lots worth more than millions of dollars in S&P futures.

In a statement, Kaplan wrote:

“The Federal Reserve is approaching a critical point in our economic recovery as it deliberates the future path of monetary policy. Unfortunately, the recent focus on my financial disclosure risks becoming a distraction to the Federal Reserve’s execution of that vital work.”

And what would be a resignation in the face of total controversy without attesting to your innocence one last time. Kaplan wrote:

“During my tenure, I have adhered to all Federal Reserve ethical standards and policies. My securities investing activities and disclosures met Bank compliance rules and standards.”

Photo: Bloomberg

Fed Chair Eric Rosengren also announced today that he would be taking an early retirement from his post as Boston Federal Reserve President, just days after major conflict of interest questions were raised about Rosengren's trading record during the pandemic.

Rosengren “made frequent or substantial trades in 2020,” according to Reuters. Bloomberg expounded on Rosengren’s trading, noting that he dealt in REITs, not trading in a blind trust, that hold mortgage backed securities. CNBC also noted of Rosengren that he “held between $151,000 and $800,000 worth of real estate investment trusts that owned mortgage-backed securities. He made as many as 37 separate trades in the four REITS while the Fed purchased almost $700 billion in MBS.”

Photo: The Boston Globe

While Rosengren blamed his departure on kidney issues (despite being on a list for a kidney transplant since summer of 2020), Kaplan blamed his resignation on “distractions” about his financial disclosures.

Yes, how dare the public become “distracted” by Kaplan transacting in million dollar lots of S&P futures with his left hand, while using his right hand to send e-mails to Chairman Powell about his thoughts on monetary policy.

The boot of U.S. citizens and their “distractions” has been on your neck for too long, Bob. Congrats on finally “freeing” yourself by resigning.

Now, I think resignations of Jerome Powell and Nancy Pelosi could be forthcoming. While it seems like a longshot, I think...(READ FULL ARTICLE HERE)

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