This is the best tl;dr I could make, original reduced by 50%. (I'm a bot)
> Federal Reserve Vice Chair Richard Clarida has become the third Fed official to resign after a trading scandal at the central bank.
> This was after new information was revealed regarding Clarida's trading in a stock fund in February 2020, when COVID threatened the global economy and the Fed was considering rescue measures.
> Clarida had initially only reported the purchases, which were made a day before Chair Jerome Powell said the Fed was ready to support markets and the economy.
> The presidents of two Fed regional banks, Eric Rosengren of the Boston Fed and Robert Kaplan of the Dallas Fed, resigned last year after information regarding their suspicious trading was released.
> Although the trades complied with Fed financial ethics rules, they raised the possibility of conflicts of interest because the officials could have profited from the actions the Fed was taking at the time.
> Clarida began his position in September 2018 after having taught at Columbia University and working for 12 years for the investment fund manager PIMCO. He received deferred bonuses and stock from his work at PIMCO. When he joined the Fed in 2018, Clarida's financial disclosures, which report assets in a range of values, estimated his wealth at between $9 million and $39 million.
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TL:dr Richard Clarida is the #2 at the Federal Reserve (yep you guessed it, he would take over in the absence of JPOW) and he is dirty asf.
AND THE DIRT HAS COME OUT THE SAME MONTH AS HIS TERM ENDS.
As a tax paying citizen I would like to know exactly what were this dishonorable man's trades in February 2020 when he had early access to non-public information as COVID came a knockin'
Calling all CREDIT SUISSE DD Apes, let's dig deeper into this cretin.
January 7th, 2022
Federal Reserve Vice Chairman Richard Clarida disclosed additional sales of shares in broad-based stock funds, drawing fresh scrutiny of financial transactions he conducted at the onset of the coronavirus pandemic.
Mr. Clarida last year said three financial investment transactions that he executed on Feb. 27, 2020, were part of a preplanned portfolio rebalancing that occurred before he had any conversations about coming Fed policy actions.
Those transactions included the sale of between $1 million and $5 million in each of two bond funds and the purchase of between $1 million and $5 million in an exchange-traded fund that invests in stocks, according to public financial disclosure forms. The forms provide only ranges, rather than exact amounts, for the values of the transactions.
Amended disclosures filed last month show that three days earlier, on Feb. 24, 2020, Mr. Clarida had sold shares in three stock funds, including the same one he would purchase shares of on Feb. 27 for a similar amount. Stocks fell during those three days amid news reports about the novel coronavirus’s global spread.
The new disclosures, earlier reported by the New York Times, raise fresh questions about Mr. Clarida’s explanation of the moves, said some observers.
“This latest disclosure does call into question the initial explanation of Mr. Clarida’s trades as a ‘rebalancing’ from bonds to equities. We now know that he made a rapid move out of and then back into stocks,” said Norman Eisen, who served as the chief ethics lawyer in the Obama White House. “Frankly, I don’t understand how selling out of a fund, failing to disclose that, then buying the same fund again, all while making a profit and having sensitive Fed information, constitutes a ‘rebalancing.’”
“In reviewing his materials, Vice Chair Clarida identified inadvertent
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