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View Full Version : Top Fed Investigator Hid Probe Of Improper Leak From Congress And Public




NACBA
03-10-2015, 02:11 PM
WASHINGTON -- The independent investigator charged with policing the Federal Reserve conducted a secret inquiry into the 2012 leak of a sensitive central bank decision, according to a person who was interviewed in the probe. It wasn't disclosed to Congress.

The existence of the at least yearlong investigation has not previously been made public, according to government records.

The leaked information, revealed to a select group of investors in October 2012, would have allowed traders to make massive gains ahead of the Fed's public announcement in December 2012 of an open-ended stimulus program that, for the first time, tied the central bank’s future actions on short-term interest rates to specific economic conditions.

The disclosure itself -- a potential criminal violation -- was first reported in December 2014 by nonprofit news outlet ProPublica. Bloomberg News also reported on the incident. At the time, both outlets said that then-Fed Chairman Ben Bernanke had asked William English, secretary of the Federal Open Market Committee, and Scott Alvarez, the Fed’s powerful general counsel who is sometimes referred to as the “8th Governor” on the Fed’s seven-person board, to investigate the leak.

http://www.huffingtonpost.com/2015/03/10/top-fed-investigator-with_n_6836294.html?ncid=txtlnkusaolp00000592