Fresh Fed financial disclosures omit the officials who ignited ethics scandal.

The Federal Reserve reveals the latest financial information from two former regional bank governors whose transactions caused a scandal at the central bank, despite playing an important monetary policy role for most of 2021. did not do it. ..

Robert S. Kaplan, the former governor of the Federal Reserve Bank of Dallas, and Eric Rosengren, the former governor of the Federal Reserve Bank of Boston, resigned in September after the talk of a trade scandal unfolded. Kaplan said the focus on trade was interfering with the Fed’s work, and Rosengren cited health issues.

The Fed played a policy role most of the time last year, but when the Fed was discussing market-critical topics such as how to deal with the onset of rapid inflation and when to withdraw financial support, either The Reserve Bank is also at the end of their tenure. Instead, the bank announced disclosures for the interim president who succeeded Kaplan and Rosengren.

“The rules that came into force when President Kaplan resigned did not require us to submit the latest financial disclosure at the time of his resignation,” wrote James Horde, head of the Federal Reserve Bank of Dallas, in an email.

The representative of the Boston Federation did not immediately respond to requests for details and comments.

Kaplan traded individual stocks and complex financial products in 2020, and Rosengren traded mortgage-backed securities that may have been influenced by Fed policies. Richard H. Clarida, a Washington-based board colleague of the Federal Reserve, took his money out of stock the night before the release of a major Federal Reserve that could push up stock prices. Immediately returned to them. The central bank has significantly revised its ethical framework after public protests erupted in response to the transactions of three civil servants.

But the fact that the world may never know what the two presidents traded in the last few months of their term can limit the Fed’s structural peculiarities and how it is accountable. I will make it stand out.Clarida I had to submit a financial disclosure When he resigned, he was appointed president and as a publicly accountable member of the board.

However, these federal rules do not apply to the regional Federal Reserve Bank.

12 reserve banks Configured as a private institution, And are not subject to transparency rules for government officials such as the Information Disclosure Act (although many say they comply with the Information Disclosure Act). Until the Fed’s ethical reforms are adopted earlier this year Mandated the president to conduct financial transactions Within 30 days, they had more loose scrutiny than many other influential government officials.

Even the Federal Reserve Board has some limitations in its ability to crack down on regional presidents.

“We don’t have that information on the Board, and I asked the Inspector General to investigate, and it’s out of my control,” said Federal Reserve Board Jerome Powell.・ Chair Powell Said earlier this year When asked for more information about Mr. Kaplan’s 2020 transaction and its timing. “I play no role in it, and I’m not trying to play any role in it.”

The investigation into the Fed’s transactions in 2020, mentioned by Powell, is being conducted by the Fed’s independent oversight body and is currently underway.