Bostic claimed that he structured his investments so neither he nor his financial advisors could directly influence trades. However, the OIG found that Bostic knew trades could occur during blackout periods and failed to prevent them, thus violating the blackout rule.
Atlanta Fed’s Bostic violated trading rules : Disclosure Omissions
The investigation, which began in October 2022 at the request of Federal Reserve Chair Jerome Powell, followed Bostic’s correction of financial disclosure forms dating back to the start of his tenure in 2017. The omissions involved trades in his managed accounts, including some made during restricted periods. The OIG report also found Bostic exceeded the Reserve Bank’s $50,000 cap on U.S. Treasury bonds and notes and twice violated a preclearance rule by not executing trades as described.
In one case, Bostic precleared the purchase of $2,370 worth of mutual fund shares but mistakenly bought 2,370 shares worth nearly $40,000.
Responses and Ongoing Review
A spokesperson for the Federal Reserve confirmed that the Board is reviewing the OIG’s findings. The Atlanta Fed has not yet commented on the report. Bostic has led the Federal Reserve Bank of Atlanta since 2017, overseeing the Sixth Federal Reserve District, which includes Alabama, Florida, Georgia, and parts of Louisiana, Mississippi, and Tennessee.
