...

Fed Official Who Warned on Real Estate Was Active REIT Trader




  • In Business
  • 2021-09-08 14:28:35Z
  • By Bloomberg
 

(Bloomberg) -- One of the Federal Reserve's largest internal critics of the risks in U.S. real estate was an active investor in the sector last year, financial disclosures show.

Boston Fed President Eric Rosengren listed stakes in four separate real estate investment trusts and disclosed multiple purchases and sales in those and other securities, the documents show.

Boston Fed spokeswoman Lucy Warsh confirmed that Rosengren's trades were not conducted via a blind trust but "his investment decisions are consistent with the system's strong ethics rules and time frames."

Separate filings for Dallas Fed chief Robert Kaplan, a former Goldman Sachs Group Inc. executive, showed multiple $1 million-plus transactions last year as the U.S economy was convulsed by Covid-19. He also disclosed a $1 million-plus stake in the Kansas City Royals baseball team.

The U.S. central bank slashed interest rates to zero in March as the pandemic spread and began buying hundreds of billions of dollars-worth of Treasuries and mortgage-backed securities to calm financial markets.

Rosengren, who has discussed his concerns in commercial real estate in public speeches, has also advocated for the Fed to consider scaling back its MBS purchases faster than Treasuries to avoid overheating the housing market.

The Wall Street Journal first reported Kaplan's trading activity, which included transactions of over $1 million in more than a dozen companies including Delta Airlines Inc., Alphabet Inc.'s Google and Verizon Communications Inc.

"All transactions were reviewed by the Dallas Fed's general counsel, who confirmed the transactions were in compliance with the bank's code of conduct. No trades were made during the Federal Reserve's blackout period, during which trading activity is prohibited," the Dallas Fed said in a statement.

All 12 regional fed have provided 2020 financial disclosures for their presidents. Most showed nothing unusual, with little or no trading reported last year.

More stories like this are available on bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

COMMENTS

More Related News

U.S. Mortgage Rates Dip Slightly to Lowest in Almost a Month
U.S. Mortgage Rates Dip Slightly to Lowest in Almost a Month

(Bloomberg) -- Mortgage rates in the U.S. slipped to the lowest level in almost a month. The average for a 30-year loan was 2.86%, down from 2.88% last week ...

Swedish IPO Rush Intensifies With Storskogen
Swedish IPO Rush Intensifies With Storskogen's Listing Plan

(Bloomberg) -- Serial acquirer Storskogen Group AB plans to raise at least 6 billion kronor ($700 million) in an initial public offering to provide funds for...

U.K. Faces Winter Blackouts Risk After Fire Knocks Out Cable
U.K. Faces Winter Blackouts Risk After Fire Knocks Out Cable

(Bloomberg) -- Winter blackouts are now a real possibility after a fire took out a key cable that ships electricity to the U.K. from France. Electricity is...

Defaulter Zimbabwe Courts Investors With $200 Million Bond Sale
Defaulter Zimbabwe Courts Investors With $200 Million Bond Sale

(Bloomberg) -- Zimbabwe will seek to raise $200 million in a debut domestic U.S. dollar bond sale on its stock exchange in Victoria Falls that trades...

Solana Promises
Solana Promises 'Detailed Post-Mortem' After 17-Hour Outage

(Bloomberg) -- The Solana blockchain linked to one of this year's fastest-rising cryptocurrencies is trying to bolster the network after a major outage and...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business