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Fed Sent Market-Moving Meeting Minutes A Day Early To Trade Groups And Staff

Wednesday, April 10, 2013 - 8:54 AM
From MarketWatch:
The Federal Reserve on Wednesday confessed to sending out market-moving minutes from the last interest-rate-setting meeting to Hill staffers and trade groups a day early. The Fed moved up the release of the minutes by five hours, to 9 a.m. Eastern.

“The reason is they were inadvertently sent early to a list of individuals who normally receive the minutes by email shortly after their usual release time,” a Fed spokesman said in a statement.

“The individuals on the distribution list -- primarily congressional employees and employees of trade organizations -- received the minutes shortly after 2 p.m. Tuesday.”

The release raises the specter of insider trading, though there is no obvious evidence of it. The minutes did signal a central bank that is waiting for better labor-market data before reducing the rate of bond purchases, with no clear indication of how much the current $85 billion per month of Treasury- and mortgage-backed securities would be reduced if jobs data were to improve.

 

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7
pearlbrownpearlbrown1,431 posts since
Nov 2, 2010
Rep Points: 6,248
1. Wednesday, April 10, 2013 - 9:11 AM
"inadvertently"?

Yeah, right. The Fed doesn't do anything inadvertently.
5
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,107
2. Wednesday, April 10, 2013 - 8:09 PM
The Dow keeps climbing. Today's 128-point gain puts the blue-chip index at a record-high 14,802, which is up almost 13 percent year to date. The S&P 500 is also at a record high. The big pullback that many investors have been waiting for is still going to happen - it has to happen - although some would argue that the Fed's infusion of capital has created an artificial exuberance that masks the real economy. From the WSJ:
"There's just no fear in this market," said Viren Chandrasoma, U.S. head of program trading at Credit Suisse Group AG. Caution had been creeping into the market in recent weeks, as sectors and indexes closely tied to economic growth lagged behind more defensive investments. But the advances come after the latest meeting minutes from the Federal Reserve did little to shake investor confidence in the central bank's support for the economy. Surprisingly strong economic data from China and Europe provided a base for the optimistic mood. "There was relief that [the Fed is] not going to be pulling back right away," said Chris Costanzo, investment officer with Tanglewood Wealth Management, which manages $725 million.
4
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,107
3. Friday, April 12, 2013 - 8:06 AM
A list of recipients obtained by CNBC reveals that at least 12 banks, a Wall Street law firm, a hedge fund and a private equity fund were on the distribution list that got the minutes early.

The banks included Fifth Third, Citigroup, UBS, Barclays, U.S. Bancorp, Goldman Sachs, Wells Fargo, HSBC, BNP Paribas, BB&T, JPMorgan Chase and PNC.
Sullivan & Cromwell, one of the most powerful Wall Street law firms, also got the email. 

The email was also sent to King Street Capital Management, a hedge fund with $20 billion under management, and private equity firms The Carlyle Group and The Cypress Group.
4
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,107
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