Breaking: Ex-Fed Governor Kugler Busted for Rule-Breaking Trades Before Resignation
Another day, another regulator caught with their hand in the cookie jar.
Former Federal Reserve Governor Kugler violated trading ethics rules in the lead-up to their abrupt resignation—because apparently even oversight officials can't resist gaming the system.
Active trading ahead of policy decisions? Check. Failure to disclose positions? Check. Textbook conflict of interest? Triple-check.
The Fed's latest black eye comes as no surprise to crypto natives, who've long watched traditional finance players lecture others about 'risk management' while breaking their own rules.
Memo to regulators: maybe clean up your own house before coming after decentralized protocols with transparent ledgers.
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Kugler’s issues began in 2024 when her spouse purchased individual stocks, including Apple (AAPL) and Cava (CAVA). Fed officials and their family members are prohibited from trading individual stocks.
Trades from Kugler’s Spouse Led to Ethics Violation
Kugler said that the individual stock purchases were made by her spouse without her knowledge and that her spouse did not intend to violate any ethics rules.
“Upon learning about the purchases, I immediately notified ethics officials, and at their direction, I initiated divestiture of these assets as soon as possible under FOMC ethics policies,” she said.
The Fed banned officials from trading individual stocks, bonds, and cryptocurrencies in 2022 after former Fed regional presidents Eric Rosengren and Robert Kaplan executed trades before the Fed implemented emergency measures to support the economy during the early stages of the Covid-19 pandemic.
