Richmond Fed's Lacker resigns, saying he was source in 2012 leak

|By:, SA News Editor

Richmond Fed President Jeffrey Lacker is resigning effective immediately, saying he was the source of the Medley leak, a 2012 incident that led to Fed Open Market Committee deliberations circulating among traders.

A report from Medley Global Advisors was released on Oct. 3, 2012, a day before the Fed released meeting minutes from the month prior -- leading to potential profits for those who acted on the information, from a drop in Treasury security prices.

"Once our Bank’s Board of Directors learned of the outcome of the government investigations, they took appropriate actions," a statement from Richmond Fed reads. "We are focused on moving forward within our organization -- and were already underway with our presidential search, following Jeffrey Lacker’s announcement in January to retire in 2017."

Lacker says he spoke with a Medley analyst by phone Oct. 2, 2012, and in a subsequent investigation interview failed to disclose that the analyst possessed confidential info.

First Vice President Mark Mullinix will serve as acting president in the meantime.

Currently, TBT +0.9%; TLT -0.5%.