Former Federal Reserve Employee Charged with Insider Trading

Robert Brian Thompson, a former senior supervisor at the Federal Reserve Bank of Richmond, has pleaded guilty to insider trading, admitting to making approximately $771,678 from 69 illegal trades involving confidential information from banks he regulated. Thompson, who worked at the Fed from 2004 until earlier this year, was charged with trading stocks in major banks, including Capital One and New York Community Bancorp, using material nonpublic information obtained through his position. The Securities and Exchange Commission has also filed a civil lawsuit against him for the same activities, accusing him of submitting false disclosure statements. His illegal trading activities reportedly took place from October 2020 to February 2024, and he is scheduled for sentencing on March 19. The case highlights significant concerns about regulatory oversight within financial institutions. Thompson's actions have raised alarms about the integrity of the financial regulatory system, given that he exploited his role for personal gain.