Free Trial

Fed official broke ethics rules but didn't violate insider trading laws, probe finds

In this image taken from video, Atlanta Federal Reserve Bank President Raphael Bostic speaks from Atlanta during a webinar sponsored by the 12 regional Fed banks to address the lack of racial disparity in the field of economics, April 13, 2021. (AP Photo/File)

WASHINGTON (AP) — A government investigation into Atlanta Federal Reserve President Raphael Bostic's securities trades and investments has found he violated several of the central bank's ethics policies.

The Fed rules violations “created the appearance” that Bostic acted on confidential Fed information and that he had a conflict of interest, but the Fed's Office of Inspector General concluded there were no violations of federal insider trading or conflict of interest laws, according to a report issued Wednesday.

The probe reviewed financial trades and investments in a roughly five-year period starting in 2017 made by several investment managers on Bostic's behalf — transactions that in October 2022 he said he had been initially unaware of.

Among the findings, investigators concluded that securities trades were made on Bostic's behalf multiple times during “blackout” periods around meetings of the central bank's policy-making Federal Open Market Committee. The investigation also found that Bostic at times did not report securities transactions and holdings, or failed to do so accurately, on annual disclosure forms.

Bostic also at one point was in breach of the Fed's policy against holding more than $50,000 in U.S. Treasury bonds or notes.

In 2022, Bostic acknowledged that many of his financial trades and investments inadvertently violated the Fed's ethics rules and said he took action to revise all his financial disclosures.

At the time, the board of the Atlanta Fed accepted Bostic’s explanations for the oversights and announced no further actions.

Still, Federal Reserve Chair Jerome Powell asked the Fed’s Office of Inspector General to review Bostic’s financial disclosures.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

A Beginner's Guide to Investing in Cannabis Cover

Unlock your free copy of MarketBeat's comprehensive guide to pot stock investing and discover which cannabis companies are poised for growth. Plus, you'll get exclusive access to our daily newsletter with expert stock recommendations from Wall Street's top analysts.

Get This Free Report
Like this article? Share it with a colleague.

Featured Articles and Offers

Recent Videos

7 Cybersecurity Stocks Outperforming the Market Right Now
Markets in Rally Mode: Will Earnings Keep It Going?
3 Tech Stocks to Buy Now—And 3 You’ll Regret Keeping

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines