Atlanta Fed President Discloses Trades ‘Inadvertently’ Made During Blackout Periods—Prompting Latest Fed Investigation

In a statement Friday afternoon, the Atlanta Fed said its board of directors was “made aware” of inaccuracies in Bostic’s financial disclosure forms, transactions that took place during blackout periods and holdings he owned that violated guidelines set by the Fed’s market-governing committee; it announced the Fed’s Office of Inspector General is investigating the matter.

As part of the announcement, Bostic released a seven-page statement explaining the incidents, saying his accounts have been directed by “third parties” and that he was unaware when his account managers made a “limited number” of transactions during blackout periods coinciding with Fed announcements and periods of financial stress.

He further outlined a series of dozens of transactions from each year between 2017 and 2021, and said he worked with the Fed to provide corrected information “as soon as” he became aware of the discrepancies “in recent months.”

Additionally, Bostic says he “inadvertently” miscalculated income for some assets in retirement accounts and that he has divested in assets barred by new trading rules that went into effect in May.

The Atlanta Fed said Bostic “thoroughly corrected” the forms dating back to when he first took the position as president in 2017 and that its board has “confidence” in Bostic’s explanation that he did not seek to profit from any nonpublic Fed knowledge.

The disclosure comes a year after the Fed announced “tough new rules” governing the investments and trades made by central bank officials—including a ban on the purchase of individual securities and cryptocurrencies—following the high-profile resignations of two regional Fed presidents who faced scrutiny over their trading activity during the pandemic.