>> A sprawling probe into the leak of confidential Federal Reserve information culminating Tuesday when a top Fed official suddenly quit. Richmond Fed President Jeffrey Lacker stepping down effective immediately after admitting he may have disclosed confidential information to a Wall Street analyst. Lacker had a conversation in 2012 with an analyst from Medley Global Advisors.
A firm which provides research to hedge funds and asset managers. The next day, Medley unveiled details of a Fed policy meeting a day before the bank published its own record of those discussions. That meeting was particularly consequential. Fed officials laid the groundwork for a massive bond buying program they would roll out later that year.
Reuters US Economics editor, Dan Burns.>> It doesn't look like anybody got rich off this. It was information that came out that added color to a lot of expectation that was already baked into the market about where the Fed was going next. So really, the bigger hit to the Fed is reputation.
The Fed has actually been a pretty airtight institution. This was really, what caught so many people by surprise here, is that this came out.>> Lacker in a statement saying he may have broken a policy which prohibits providing any profit-making person or organization with a prestige advantage over its competitors.
Lacker also said, he initially failed to disclose his role in the matter during a review of the leak by the Fed's General Council, which began investigating shortly after Medley's report in 2012. The leaks sparking outrage in the US Congress and a criminal probe.