Richmond Fed chief resigns, admitting violation of confidentiality
Washington
JEFFREY Lacker, the president of the Federal Reserve Bank of Richmond in Virginia, resigned abruptly on Tuesday, saying that he had broken the Fed's rules in 2012 by speaking with a financial analyst about confidential deliberations.
Dr Lacker said he also failed to disclose the details of the conversation even when he was questioned directly in an internal investigation.
The confession and resignation shed light on a nearly five-year-old mystery. In October 2012, Medley Global Advisors, a firm that tracks policy developments for financial investors, sent a note to its clients describing previously undisclosed details of the Fed's plans for a new phase in its bond-buying campaign.
The information was potentially valuable to investors, who could have made money by anticipating the market's reaction when the Fed's plans were publicly disclos…
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