A recent government investigation has revealed that Atlanta Federal Reserve President Raphael Bostic violated several ethics policies of the central bank in relation to his securities trades and investments. While the investigation found no breaches of federal insider trading or conflict of interest laws, it did highlight actions that raised concerns about the potential misuse of confidential information and conflicts of interest.
The probe, which covered a period of approximately five years starting in 2017, focused on financial transactions made on Bostic's behalf by investment managers. It was discovered that some of these trades occurred during 'blackout' periods surrounding meetings of the Federal Open Market Committee, the central bank's policy-making body. Additionally, there were instances where Bostic failed to accurately report securities transactions and holdings on required disclosure forms.
One specific violation noted was Bostic's breach of the Fed's policy limiting holdings of U.S. Treasury bonds or notes to $50,000. In response to the investigation's findings, Bostic admitted that many of his financial activities inadvertently contravened the Fed's ethics rules. He took corrective measures by revising all his financial disclosures to address the oversights.
Following Bostic's acknowledgment and actions, the board of the Atlanta Fed accepted his explanations and opted not to take further disciplinary measures. However, Federal Reserve Chair Jerome Powell requested a review of Bostic's financial disclosures by the Fed's Office of Inspector General to ensure compliance with ethical standards moving forward.
