Biden admin official under investigation for alleged insider trading

The Daily Caller reports that a federal official is now being investigated for insider trading.  

The official is Raphael Bostic, the president of the Federal Reserve Bank of Atlanta.

The investigation is being led by the Federal Reserve Board’s Office of the Inspector General (OIG). This comes after the Atlanta Federal Reserve Bank, according to the Daily Caller, found numerous inaccuracies in financial disclosures made by Bostic.

Trading during the blackout period?

Among the inaccuracies were a series of trades that Bostic made during March and April of 2020. The problem is that these were “blackout periods,” periods during which federal officials are prohibited, by the U.S. central bank’s ethics rules, from trading.

When this was brought to Bostic’s attention, he responded by amending his financial disclosures. And, he didn’t just amend them for 2020, he amended them going back to 2017, when he became president of the Federal Reserve Bank of Atlanta.

In addition to the amendments, Bostic has put forth a 7-page statement explaining the situation.

Bostic explains

Bostic’s explanation is the same one that seemingly every government member uses when they are facing allegations of insider trading, namely, that he did not make the trades, but his financial advisors did.

He wrote:

Due to my reliance on a third-party manager, I was unaware of any specific trades or their timing, including a limited number that took place during Federal Open Market Committee … blackout periods or financial stress periods. Similarly, I was unaware of when my holdings of U.S. Treasury funds in 2021 exceeded the limits set forth by the FOMC’s trading and investing rules.

Bostic, in his statement, explicitly denies insider trading, saying, “at no time did I knowingly authorize or complete a financial transaction based on nonpublic information or with any intent to conceal or sidestep my obligations of transparent and accountable reporting.”

What now?

The Atlanta Fed’s board has accepted Bostic’s explanation. But, the U.S. Federal Reserve, nonetheless, is going to investigate the matter.

A spokesperson for the Inspector General has put out a statement, saying, “we are aware of the matter and will conduct an independent and comprehensive investigation. We have no further comment at this time.”

Don’t expect anyone to be held accountable here. No government member ever is for insider trading allegations.