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00:00:01
>> 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.
00:00:23
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.
00:00:42
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.
00:01:02
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.
00:01:21
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.