|
|
Pimco, the bond fund manager, announced last week that it hired a former Federal Reserve official who came under fire after moving a significant amount of money from bonds to stocks just days before the Fed moved to prop up the financial markets during COVID-19.
Richard Clarida was hired by the California-based company as the bond market struggles with the rise of inflation, the Financial Times reported. (See “FED WINDING DOWN BOND PURCHASE PROGRAM: JOKERS WILD,” “FED ETHICS? FU!” “BANKSTER BANDITS GET RICHER PLAYING THE INSIDE TRACK,” and “THE FEDERAL RESERVE MOB: GANGSTERS, INC.”)
The paper noted that Clarida, who stepped down from his post earlier this year, was cleared of wrongdoing after moving $1 million to $5 million from a bond fund to a stock fund just days before Chair Jerome Powell announced that the Fed will “use our tools” to support growth.
Clarida admitted that he had failed to fully disclose financial transactions at the time and was the third high-ranking official at the central bank to resign over a trading scandal.
Dennis Kelleher, the CEO of Better Markets, a watchdog group, said the Fed’s inspector general’s report into the matter did not go far enough and noted that the Fed’s policy requires senior officials to avoid “even an appearance” of conflict interests.
Powell was also criticized over stock purchases after his family trust made five trades in December 2019, when there was a policymaking meeting, The Associated Press reported.
The report said the inspector general found that the trades were done by a financial adviser and Powell was unaware.
Wall Street on Parade noted that the inspector general at the Fed is appointed by the “head” of the Federal Reserve Board of Governors; he reports to that same Board of Governors; and he can be terminated by them with a two-thirds vote.
Gerald Celente has long quoted the late George Carlin who said, “It’s one big club, and you ain’t in it.”
Unusual Whales, a popular economic Twitter handle, tweeted, “Pimco has hired former Federal Reserve vice-chair Richard Clarida, after being cleared for insider trading. Unusual Whales showed that Clarida traded millions a day before Powell made an emergency pandemic statement. He literally traded on non-public information.”
Clarida will serve as global economic adviser for Pimco.
TRENDPOST: As we have continually noted, the Fed is nothing more than a Bankster Gang and the revolving door from government to private companies will continue to spin wildly. (See “REVOLVING DOOR: IT’S ONE BIG CLUB AND YOU AIN’T IN IT.”)
We noted last week that Matt Holman, a top Food and Drug Administration official whose focus at the agency was on products aimed at suppressing smoking, took a job with Philip Morris, the multinational tobacco company.
Gregory Conley, the president of the American Vaping Association, took to Twitter after reports emerged of Holman’s new job and he mentioned how small business vape manufacturers on Reddit took issue with the appointment.
“The man who signed a letter last year telling me that my products were not appropriate for the protection of public health is now working for one of the largest tobacco manufacturers in the world. Let that sink in,” one person posted.
One Twitter user took issue with Clarida’s new job.
“Clarida swapped between $1 million and $5 million from a bond fund to stock funds ONE DAY before Jerome Powell made a statement,” the tweet read. “He is leaving the Fed after this came to light. Now he returns to PIMCO. When is enough… enough?”