Fed: Medley Probe Would Be Jeopardized If It Fully Complied With Hensarling Subpoena

The Federal Reserve would jeopardize an ongoing criminal investigation if it were to hand over all records and information relating to a leak inquiry as requested in a subpoena, Chairwoman Janet Yellen told House Financial Services Chairman Jeb Hensarling in a letter. The criminal investigation into the leak of information in 2012 from the Fed to Medley Global Advisers is being conducted jointly by the Fed's Office of the Inspector General and the Department of Justice. Yellen told Hensarling that the concerns of both the inspector and the Justice Department will change once the investigation is complete, and that the "deferral" will ensure the central bank doesn't impede that probe.