Federal Officials Will be Banned From Owning Individual Stocks
The ban includes top policymakers
Responding to a growing controversy over investing practices, the Federal Reserve on Thursday announced a ban on officials owning individual stocks and limits on other activities as well.
The ban includes top policymakers such as those who sit on the Federal Open Market Committee, along with senior staff. Future investments will have to be confined to diversified assets such as mutual funds.
Fed officials can no longer have holdings in shares of particular companies, nor can they invest in individual bonds, hold agency securities or derivative contracts. The new rules replace existing regulations that, while somewhat restrictive, still allowed members to buy and sell stocks.
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