Financials Matter

"It's Not Just About Finance"

Frontrunning is Alive and Well at the FED

Rules for Thee but not for Me is alive and well at the Fed.

And the name of the game is called “Frontrunning.”

In Plain English, the term “frontrunning” is when an individual OR organization takes action – buy or sell – on information that causes stocks to move up OR down Before the announcement.

In other words, it’s illegal…especially for individual investors like us.

In fact, if you’re caught frontrunning you’ll likely go to jail.

But…and this is a Very Big Butt… Frontrunning doesn’t apply to the Elite.

And such is the case with Dallas FED president Robert Kaplan.


Alive and well at the FED

From the publication “Wall Street on Parade” Sept. 18, 2021:


A transaction that has been missed by major news outlets on the financial disclosure form for Dallas Fed President, Robert Kaplan, is a line item showing that Kaplan made “multiple” trades of more than $1 million in S&P 500 futures.

This is a stunning revelation for a multitude of reasons. First, Kaplan’s financial disclosure form shows that he already had exposure to the S&P 500 through more than $1 million in an S&P 500 Exchange Traded Fund (ETF), which trades during regular stock market hours.

Using S&P 500 futures gave Kaplan access to making directional bets on where the market would go after the stock market closed, which is typically when the Fed makes market-moving announcements.

Bottom line is Kaplan was “Frontrunning the markets” KNOWING what announcements would be made after the markets closed.

This is probably one of the most arrogant and brazen trading scandals in the history of the Fed.

And Kaplans trading appears to be expressly prohibited by the Code of Conduct of the Dallas Fed under “Disqualifying Interests.”

But what do you think will happen to him?

If you guessed “a slap on the wrist,” you’re probably right.

It’s really sad how these criminals get away with this crap year after year.

But that’s because they own the circuit court judges.

And even if they’re prosecuted, they won’t be convicted.

So don’t expect anything to change in the near future.

Instead learn how to recognize the signals that the boyz might be frontrunning the markets (HERE).

Hint:  It’s already happening in the bond markets.

Share this with a friend…especially if they own bonds.

And tell them:  We’re Not Just About Finance.