“Money is the barometer of a society’s virtue. When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed.” – Francisco’s Money Speech, “Atlas Shrugged”
The Rule of Law no longer applies to the political and corporate elitists. Recall that three regional Fed Presidents were caught making millions in their personal stock accounts executing trades during “blackout” periods when they are legally forbidden to trade. All three individuals were pressured to resign. However, they did not suffer any consequences as a result of their illegal trading activities – “your laws don’t protect you against, but protect them against you…”
Apparently the Fed’s El Hefe, Jerome Powell, also decided that he is above the law and executed trades in his personal account during blackout periods. Occupy the Fed Movement scrutinized public filings and determined that Powell on more than one occasion traded stocks in his personal account during legal blackout periods, failed to disclose most trade dates and “apparently” lied about muni bond conflicts.
“While the Fed has touted new forthcoming trading rules that are more restrictive, one of the few existing restraints on Fed officials is the financial trading blackout around FOMC meetings. Powell could not even abide by that.”
Keep in mind that Powell directed the massive bailout of Wall Street banks. He knew ahead of time that the trillions printed and transferred to the financial system would send stocks and bonds of all “flavors” soaring. He directly benefited from that by implementing trades that took advantage of his inside knowledge during periods of time when it was unequivocally illegal for him to trade in his personal brokerage account.
“Fed Chair Powell — who is supposed to serve in the public interest and avoid even the appearance of conflicts — traded millions in personal stocks and bonds while obstructing required public disclosures about those trades for years.”
When the reports surfaced about the regional Fed Presidents conducting illegal trades, I knew that Jerome Powell was doing the same thing. Those who live in areas in which cockroaches are prevalent know that when you see one, there’s an entire nest hiding behind the walls. The officials at the Federal Reserves are like cockroaches.
I would bet good money that these Fed officials privately discussed and boasted about their trading activity. After all, they knew that there would be little to consequences. And, trust me, the Fed officials who resigned are not capable of feeling shame. Needless to say the message is clear that public servants are above the law and illegal activities in which they engage will not be subjected to law enforcement.
“Powell is guided in all his actions not only by his fealty to Wall Street cronies, but also by truly outrageous personal financial conflicts and violations. Powell has tried very hard to cover this up before his confirmation hearing. Sadly, there’s no Woodward and Bernstein of the day to shed light on the truth.”
Here is the entire report by Occupy the Fed Movement: Fed Scandal Bigger Than Watergate?