The head of one of the 12 banks that form the basis of Federal reserve, Jeffrey Lacker announced the resignation from the post of President of the Federal reserve Bank (FRB) of Richmond in connection with the involvement in the leak of confidential information about the plans of the us Central Bank, according to Bloomberg.
“I’m sorry I broke the rules and confirmed information which had to remain confidential. My behavior did not meet these important rules of confidentiality” — the statement says Lacker.
The resignation of the head of the Richmond fed was the result of the investigation conducted by the Federal reserve with the participation of the Ministry of justice and the Federal Bureau of investigation, which revealed that in October 2012, household spending has violated the rules of communication with analysts and then not provided the leadership the fed’s full report about this conversation.
The survey acknowledged that when in a telephone conversation with him, analyst at Medley Global Advisors mentioned the details of the discussion, members of the Federal open market Committee, the fed plans to expand the quantitative easing program, he had to abandon the review immediately or terminate the conversation.
“Instead, I don’t deny it, not that it was not possible to comment on these details and continued the conversation,” — said the banker, noting that only later realized that his silence was perceived as confirmation of the announced information.
Representing the interests of the Overall partner of the law firm McGuireWoods Richard Gallen told the New York Times that his client helped the Ministry of justice to clarify the circumstances of the case and on completion of investigation, was informed that charges against him will not be pushed.
The day before, April 4, on the website of the U.S. Federal reserve released a statement thanked the US authorities for assistance in the investigation of leaks from the Federal open market Committee. In turn, the press service of the Federal reserve Bank of Richmond reported that prior to the appointment of a new President the duties of the head Bank will execute its first Vice-President mark Mullinix.
“The Federal reserve gave priority to the protection of information. We expect each of our employees will comply with all accepted rules and standards of behavior”, — reads the statement of the FRB.
At the same time surveyed by Bloomberg experts say that the resignation of Lacker gives no answer to the question of who was the culprit of the leaks from the bowels of the fed.
“History is not over. A number of different parts indicates that industrial production was not the main source of information”, — said the Agency former adviser of the Federal reserve Board Andrew Levin.
Former chief economist of the Committee on banking, housing and urban development U.S. Senate Aaron Klein also noted that the resignation of the industrial production still raises more questions than it answers.