Elected Officials Insider Trading
Government Insider Trading
Bryce: Hey, what's up guys? Bryce Gonser and Jesse Taff Buying the 208. Has there been insider trading going on with the Fed?
Jesse: So recently, the US government and specifically the Federal Reserve Bank have been kind of under fire lately, due to people within positions or in political positions buying and trading the same assets that the US government has been buying or trading. What do you think about that?
Bryce: Absolutely insane. So, I mean, you know, just they've been under mass was currently I would not want to be I would never want to be dropped out of it, especially when this thing came out. So it was important to understand guys is the Federal Reserve Bank has been buying billions of dollars every single month to keep rates low. That's why interest rates I've been below, you know, 3% and up until right about now is that they've been buying these assets every single month, and their balance sheet has continued to grow and grow. Why are they touching scrutiny is because there have been members that have actually been day trading. Buying and selling the very assets that the bank has been purchasing and or selling. For example, Boston Fed Chair president, former Boston Fed Chair president Eric Rosengren made over 37 different trades this year alone into the very same assets that there were REITs, of which the government was purchasing that doesn't look good, does not look good. So granted, the Fed came out very, very quickly and basically has said from now on, they're no longer allowed to basically trade stocks or bonds, they can only have mutual funds. They have to hold for over a year and then once they do want to buy or sell they actually have to get permission to do so which I think is what should have been done a long, long time ago. But pretty crazy that you know, Boston Fed Chair president Eric he got caught there was another one that got caught how many other officials got away with potentially millions of dollars on insider trading.
Jesse: Yep. So yeah, let us know your thoughts on that obviously. I mean, it's pretty clear to us that should have been a rule a long time ago. But it is recent now and it is in place so hopefully going forward there are fewer people in power making money off of the decisions that they're essentially pushing through the government.
Bryce: Absolutely, guys, we're not getting political here. But if you guys have any questions you have and you know, is it right? Is it wrong? Do you agree? Go ahead and drop them below haunt you guys next time.