Now if they would just apply it to members of Congress. From CNBC News:
Fed to ban policymakers from owning individual stocks, restrict trading following controversy
Responding to a growing controversy over investing practices, the Federal Reserve announced Thursday a wide-ranging ban on officials owning individual stocks and bonds and limits on other activities as well.
The ban includes top policymakers such as those who sit on the Federal Open Market Committee, along with senior staff. Future investments will have to be confined to diversified assets such as mutual funds.
Fed officials can no longer have holdings in shares of particular companies, nor can they invest in individual bonds, hold agency securities or derivative contracts. The new rules replace existing regulations that, while somewhat restrictive, still allowed officials such as regional presidents to buy and sell stocks.
Good - they should not be able to benefit by knowledge they have ahead of the average citizen.
Same goes for members of Congress - people have made a lot of money buying stocks ahead of passing a new law.
Leave a comment