Richmond Fed President Jeffrey Lacker resigns, admits to leaking confidential information

And he certainly should have been charged…

Jeffery Lacker, the president and CEO of the Federal Reserve Bank of Richmondand a member of the Federal Open Market Committee, abruptly announced his resignation on Tuesday, revealing himself as the source of a leak of confidential information that spurred investigations by the Department of Justice, the Office of the Inspector General of the Federal Reserve Board, the Federal Bureau of Investigation, the Commodity Futures Trading Commission, and others.

Lacker was already set to retire from the Richmond Fed in October, but said Tuesday that he is resigning immediately due to his role in the leak scandal, which stemmed from confidential information about the Fed’s plans to help support the country’s economic recovery being leaked to Medley Global Advisors in 2012.

Here’s some background on the scandal from the Wall Street Journal:

The leak probe centers on a confidential Sept. 12-13, 2012, meeting of senior Fed officials, when the Fed voted to begin a new effort to spur the economy by buying $40 billion worth of mortgage-backed securities each month. The Fed announced the move after the meetings concluded. It left open the possibility of further stimulus.

The important details of the Fed’s internal deliberations at the September meetings were supposed to be disclosed by the Fed in early October.

Before that happened, The Wall Street Journal published a story reporting that Fed officials at the September meeting were considering further action to stimulate the economy. The Sept. 28 story said there was a “strong possibility” the Fed would begin purchasing large amounts of Treasury bonds.

The next week, Medley sent a research note to its clients saying with more certainty that the Fed was “likely to vote as early as its December meeting” to begin monthly purchases of $45 billion worth of Treasury bonds.

The Oct. 3 Medley note, which came the day before the Fed released the meeting minutes, included confidential details that indicated the information came from inside the Fed.

Read on.

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