MNI: Fed Clamps Down on Senior Leaders' Stock Trading

The Federal Reserve on Thursday announced new rules prohibiting the purchase of individual securities, restricting active trading, and increasing the timeliness of public disclosures by policymakers and senior staff.

Senior officials will be limited to purchasing diversified investments like mutual funds, according to a statement from the Fed. The new restrictions also require 45 days advance notice for purchases and sales, prior approval for purchases and sales, and investments to be held for at least one year. Transactions will not be allowed during periods of heightened market stress.

Financial disclosures have shown former Dallas Fed President Robert Kaplan traded millions of dollars of individual stocks last year and ex-Boston Fed President Eric Rosengren bought and sold securities tied to real estate.