According to 2012 reports, the Federal Open Market Committee (FOMC), which is made up of high-ranking Federal Reserve officials, held a meeting on monetary policy with Wall Street organizations.
The reports claim that at this meeting, confidential FOMC information was leaked to Medly Global Advisors, who then shared this information to clients.
Time and time again, the Federal Reserve has refused to comply with the House Financial Services’ Oversight Subcommittee, on which I sit, in regards to how this market-sensitive information was leaked.
This past month, the House Financial Services Committee issued a subpoena to the Federal Reserve. This subpoena will help bring accountability and transparency as it will require the Federal Reserve to submit vital documents to the Committee regarding the leak of market-sensitive inside information to Wall Street traders.
I have repeatedly expressed my concerns with our nation’s central bank as it is clearly resistant to turn over important documents to this oversight Committee. This information would help determine who and how confidential information was unlawfully released.
Such a breach could have given one group of investors an unfair and illegal advantage over the general public regarding their stock and bond investments.
This isn’t fair, and it isn’t right.
Hard-working Maine families saving and investing for their retirements and children’s education have zero tolerance for Washington insiders gaming the system for their own advantage and that of their cronies. It’s no wonder why honest Americans have lost trust in big government that looks out for itself at the expense of those who play by the rules.
Mainers deserve a government that works FOR them, not AGAINST them.
I will continue to monitor the status of the subpoena and make sure the Federal Reserve turns over key documents regarding this leak.
We must get to the bottom of this.