Jay Powell traded during blackout period; failed to disclose most trade dates
occupythefed.substack.com
occupythefed.substack.com
And I don’t know if this data is available and I’m certainly not an expert, but the statement of that meeting (which was a Dec 10-11, 2019 meeting) was to be released at 2pm EST.
Which still gives at least 2 hours for market close.
Considering he would have had blackout dates for 10 days prior, it’s completely natural for there to have been a string of transaction activity right after the meeting.
Now, the transaction calendar doesn’t give a time, so if the transactions were made at 9AM that might be bad (although if that’s the case why did he wait till the second day of the meeting).
In addition, the transactions were made by the Family Trust (it’s not clear if this is a blind trust or not, however).
I know CNN is pretty liberally biased, and blind trust in news organizations is a bad idea.
But I think it's disingenuous to say that "government documents and quotes from primary sources" on a tiny Substack hold the same weight as information that goes out on the nightly news.
NY Times (October 4, 2021) - https://www.nytimes.com/2021/10/04/business/elizabeth-warren...
NY Post (October 18, 2021) - https://nypost.com/2021/10/18/fed-chair-powell-sold-millions...
Bloomberg (October 19, 2021) - https://www.bloomberg.com/opinion/articles/2021-10-19/jerome...
Intelligencier (Jan 10, 2022) - https://nymag.com/intelligencer/2022/01/washington-d-c-has-a...
Lawmakers have asked to investigate Powell’s trades but there is no evidence that they were unethical.
It might be fishy that some of his trades were days before massive Wall Street swings. Hence the justifiable requests for investigations, but considering Powell makes several transactions a year, and there were many days with massive swings in the market over the past couple of years, some of those swings being uncomfortably close to trades are not all that suspicious by themselves.
Even the two that resigned over this were exonerated because the entity that approves the trades stated that they were done according to the rules in place at the time. They stepped down in an effort improve the image of the Fed and to quell the outrage brewing at the time.
> Despite his massive personal financial conflicts, Chair Powell has acted with impunity to advantage the Wall Street firms managing his investment fund holdings both before and after the pandemic. Indeed, in late 2019, prior to the COVID-19 pandemic, Powell directed the Fed to engage in an unprecedented emergency repo program that provided nearly $20 TRILLION in cumulative loans to Wall Street, including ~$3.7 trillion to Japan’s Nomura Securities and ~$1.4 trillion to Germany’s Deutsche Bank trading arms. Industry experts have opined that the program was in direct violation of the Dodd-Frank Act.24
> 24 https://wallstreetonparade.com/2022/01/a-nomura-document-may...
By Pam Martens and Russ Martens
> Mr. Martens’ career spans four decades in publishing and printing management, including magazine and music publishing and the non-profit sector. Mr. Martens has received numerous awards in publishing and graphic design.
> Ms. Martens worked on Wall Street for 21 years. The last decade of her career was spent as an outspoken critic of Wall Street’s corrupt practices, its private justice system and the repeal of the Glass-Steagall Act.
Except there's no listed institutions / non-profits / publishers of note. If this is their bombshell article, and this is the strongest source they can pull up, it's pretty weak. Wall Street On Parade is also banned on reddit for vote manipulation apparently.
Searching on Google for Wall Street on Parade leads to r/GMEJungle r/Superstonk etc etc. Which leads me to believe there's a 99% chance this article is a conspiracy theory written by QQQanon.
Point is, the apparent loan is greater than their entire assets and much greater than all their liabilities.
Unless this 1 publicly traded bank is carrying trillions in secret liabilities, why would they even borrow that much from the Fed.
For example, assume that I lend you $1000 for one day. The following day you pay me back $1000 plus interest, and I lend you $1000 for another day. We keep going for 1000 days, rolling over the debt. TFA would say I have lent you $1M. In reality, I have lent you $1000 for three years or so.
Why would you cumulate overnight repos…
Why do you think this?
First, TFA states as much: "repo program that provided nearly $20 TRILLION in cumulative loans to Wall Street".
Second, the Sep 2019 repo crisis is well-known, it lasted multiple weeks, and it was big enough that the Fed wrote a postmortem about it: https://www.federalreserve.gov/econres/notes/feds-notes/what... You can read the details, but the Fed offered very short-term loans in the range of tens of billions, rolled over for an unusually long time.
https://www.brookings.edu/blog/up-front/2020/01/28/what-is-t...
It’s a large numbers market. I guess that’s why TFA liked it. It gave them big scary numbers to use.
Chairs can't act, they can only be passively sat upon.
I think this has been going on for the last 100 years.
I don’t want anybody else on the job.