1 00:00:01,520 --> 00:00:05,120 Speaker 1: Jason Leopold starts every morning the same way. He wakes 2 00:00:05,240 --> 00:00:09,720 Speaker 1: up in his Los Angeles home early, sometimes too early, sadly, 3 00:00:10,920 --> 00:00:13,960 Speaker 1: at like four or four or thirty. The house is still, 4 00:00:14,880 --> 00:00:19,599 Speaker 1: his wife sleeping, his dog, Bella Lakosi also sleeping. The 5 00:00:19,680 --> 00:00:21,680 Speaker 1: room's pitch black, curtains closed. 6 00:00:21,840 --> 00:00:24,880 Speaker 2: And then I see the glow of my cell phone 7 00:00:25,239 --> 00:00:28,040 Speaker 2: calling to me. Pick me up, Jason, pick me up. 8 00:00:28,160 --> 00:00:29,800 Speaker 2: See what's going on? Open me. 9 00:00:31,080 --> 00:00:34,519 Speaker 1: As he reaches toward the nightstand for his phone, he's thinking. 10 00:00:34,200 --> 00:00:36,200 Speaker 2: Please, let there be a whole bunch of documents. Please, 11 00:00:36,240 --> 00:00:38,839 Speaker 2: Let there be a whole bunch of documents. Please. And 12 00:00:38,920 --> 00:00:41,040 Speaker 2: if there are documents, I'm not going to it first. 13 00:00:41,040 --> 00:00:42,879 Speaker 2: I want to save it till the very end. 14 00:00:43,159 --> 00:00:46,040 Speaker 1: In the meantime, he's checking his push notifications for news 15 00:00:46,080 --> 00:00:48,440 Speaker 1: that broke on the East Coast while he slept. 16 00:00:48,240 --> 00:00:52,360 Speaker 2: I'm thinking, okay, for your request. Interesting, We'll save it. 17 00:00:52,840 --> 00:00:56,720 Speaker 2: I wake up feeling like I constantly have to find 18 00:00:56,760 --> 00:01:00,240 Speaker 2: a new request. I don't like to fall behind. So 19 00:01:00,560 --> 00:01:04,000 Speaker 2: I've been building this pipeline for nearly twenty years. 20 00:01:05,160 --> 00:01:09,320 Speaker 1: April twenty seventh, twenty twenty three, was no different. That day, 21 00:01:09,480 --> 00:01:10,840 Speaker 1: he was scrolling Twitter. 22 00:01:10,680 --> 00:01:14,600 Speaker 2: It was called Twitter. Then he's scrolling, scrolling through. I'm scrolling, 23 00:01:14,760 --> 00:01:15,920 Speaker 2: scrolling through. 24 00:01:16,240 --> 00:01:19,600 Speaker 1: Until a tweet from his colleagues at Bloomberg caught his eye. 25 00:01:19,760 --> 00:01:23,399 Speaker 2: FED chair Jerown Powell held a call with Russian pranksters 26 00:01:23,440 --> 00:01:28,320 Speaker 2: who were posing as Ukrainian President Voladimir Zelenski, according to 27 00:01:28,480 --> 00:01:31,840 Speaker 2: video shown on Russian TV. I mean, I just laughed. 28 00:01:32,120 --> 00:01:35,119 Speaker 1: Jason couldn't click the article fast enough, But after reading it, 29 00:01:35,240 --> 00:01:39,199 Speaker 1: he had more questions than answers. The most obvious. 30 00:01:38,760 --> 00:01:42,200 Speaker 2: One, how the hell was he duped by Russian pranksters. 31 00:01:42,319 --> 00:01:44,520 Speaker 2: This is Jerome Powell. He's the chairman of the FED. 32 00:01:44,560 --> 00:01:48,559 Speaker 2: He said's interest rates? So, but how did that happen? 33 00:01:48,760 --> 00:01:51,400 Speaker 1: Jason left out of bed, giddy pacing. 34 00:01:51,880 --> 00:01:54,120 Speaker 2: I'm already imagining what the records look like. And I 35 00:01:54,200 --> 00:01:56,440 Speaker 2: know there's got to be records, and I'm playing out 36 00:01:56,440 --> 00:01:58,320 Speaker 2: the scenario of me getting the records. 37 00:01:58,520 --> 00:01:59,760 Speaker 1: Only one thing left to do. 38 00:02:00,400 --> 00:02:06,000 Speaker 2: I have to file a request right now, turn it up. 39 00:02:06,680 --> 00:02:09,880 Speaker 2: I'm investigative journalist Jason Leopold. I spend most of my 40 00:02:09,960 --> 00:02:11,680 Speaker 2: days getting documents from the government. 41 00:02:11,760 --> 00:02:13,880 Speaker 3: I'm attorney Matt Topic, and I fight them in court 42 00:02:13,919 --> 00:02:17,760 Speaker 3: to open their files. When they don't want to from Bloomberg. 43 00:02:17,240 --> 00:02:21,400 Speaker 2: And No Smile. This is Disclosure, a podcast about buying 44 00:02:21,480 --> 00:02:24,880 Speaker 2: loose government secrets, the Freedom of Information Act, and the 45 00:02:25,000 --> 00:02:31,359 Speaker 2: unexpected places that takes us. Hey, Matt, have you ever 46 00:02:31,400 --> 00:02:31,960 Speaker 2: been pranked? 47 00:02:33,600 --> 00:02:36,520 Speaker 3: Like tip fall for a scam? It was an email 48 00:02:36,560 --> 00:02:39,480 Speaker 3: from someone It was like, I need help buying Amazon 49 00:02:39,560 --> 00:02:41,959 Speaker 3: gift cards. I don't know, like I can't get into where. 50 00:02:41,960 --> 00:02:43,880 Speaker 3: Can you please buy me these gift cards? And I'll 51 00:02:43,880 --> 00:02:46,400 Speaker 3: pay you back. But if you ever met the person 52 00:02:46,800 --> 00:02:50,040 Speaker 3: that it was purporting to be from, one hundred percent 53 00:02:50,120 --> 00:02:52,520 Speaker 3: that person would have done that. Like whoever scammed it, 54 00:02:52,600 --> 00:02:56,440 Speaker 3: they just dumb locked into like the exact right person, 55 00:02:56,919 --> 00:02:58,480 Speaker 3: and so like I kind of felt for it, and 56 00:02:58,520 --> 00:03:01,160 Speaker 3: then I got a call from Amazon. It was like, hey, 57 00:03:01,200 --> 00:03:03,320 Speaker 3: it looks like somebody's trying to scam me for these 58 00:03:03,400 --> 00:03:06,119 Speaker 3: And then I felt like a real idiot at that point. 59 00:03:06,280 --> 00:03:09,720 Speaker 2: Yeah, that is an elder abuse scam. I got to 60 00:03:09,760 --> 00:03:11,000 Speaker 2: look up your. 61 00:03:10,840 --> 00:03:15,959 Speaker 3: Age and I'm not even half as old as you. 62 00:03:15,960 --> 00:03:18,280 Speaker 2: You know who else has been pranked? The Chairman of 63 00:03:18,280 --> 00:03:22,200 Speaker 2: the Federal Reserve, Jerome Powell. The thing is, Powell's a 64 00:03:22,200 --> 00:03:24,560 Speaker 2: guy who's walking in the shoes of Valan greens Band, 65 00:03:24,639 --> 00:03:28,280 Speaker 2: Ben Bernanki, and Janet Yellen. When a Fed chief coughs, 66 00:03:28,560 --> 00:03:32,600 Speaker 2: markets move. If there's a formula for job success, it's 67 00:03:32,639 --> 00:03:35,920 Speaker 2: that you run the central bank of the world's biggest 68 00:03:36,160 --> 00:03:40,560 Speaker 2: economic power while saying as little as humanly possible in 69 00:03:40,600 --> 00:03:44,160 Speaker 2: public about how you plan to do it. So back 70 00:03:44,200 --> 00:03:48,000 Speaker 2: in April twenty twenty three, Jerome Powell found himself in 71 00:03:48,040 --> 00:03:51,360 Speaker 2: a pickle. It turns out a meeting he thought he 72 00:03:51,560 --> 00:03:56,440 Speaker 2: had with Ukrainian President Vladimir Zelenski wasn't actually with Zelenzki 73 00:03:56,480 --> 00:03:59,720 Speaker 2: at all. It was with these two Russian pranksters. And 74 00:03:59,760 --> 00:04:02,520 Speaker 2: this all came to light in a video of their 75 00:04:02,520 --> 00:04:05,720 Speaker 2: meeting that went viral on social media. I see all 76 00:04:05,760 --> 00:04:11,360 Speaker 2: this and I am like, this is incredible Foyer material 77 00:04:11,440 --> 00:04:13,440 Speaker 2: like that. I knew there had to be a report. 78 00:04:13,880 --> 00:04:16,120 Speaker 2: I knew that there was probably, you know, a bunch 79 00:04:16,160 --> 00:04:19,560 Speaker 2: of emails behind the scenes. So I filed this request 80 00:04:19,600 --> 00:04:21,640 Speaker 2: with the Federal Reserve. What did you ask for it? 81 00:04:21,839 --> 00:04:24,920 Speaker 2: So whenever I file a request, I try to imagine, 82 00:04:24,960 --> 00:04:27,360 Speaker 2: like being a fly on the wall as everything's sort 83 00:04:27,360 --> 00:04:30,640 Speaker 2: of unfolding within a federal government agency. What does that 84 00:04:30,680 --> 00:04:35,599 Speaker 2: consist of? I'm imagining that while this was being planned, 85 00:04:35,839 --> 00:04:39,760 Speaker 2: that there's some email traffic, there's some discussions, and it 86 00:04:39,800 --> 00:04:43,320 Speaker 2: would be very clear that there'd be some kind of investigation, right. 87 00:04:43,560 --> 00:04:46,880 Speaker 2: I just know that from filing similar Foyer requests with 88 00:04:47,040 --> 00:04:51,520 Speaker 2: Agency Inspectors General. So I asked for final reports of 89 00:04:51,560 --> 00:04:55,279 Speaker 2: an investigation that may have taken place into how Powell 90 00:04:55,360 --> 00:04:58,320 Speaker 2: was duped, and so I kind of kept it pretty narrow. 91 00:04:58,520 --> 00:05:00,719 Speaker 2: I asked for a few days of records. 92 00:05:00,920 --> 00:05:03,479 Speaker 3: You first get an acknowledgement that says, yes, we have 93 00:05:03,600 --> 00:05:04,960 Speaker 3: records and are processing them. 94 00:05:05,320 --> 00:05:08,640 Speaker 2: So first just get an acknowledgment letter we got your request. 95 00:05:09,240 --> 00:05:11,920 Speaker 2: I check in with, you know, with the Federal Reserve. 96 00:05:12,000 --> 00:05:15,279 Speaker 2: They say they're processing the records. They send me a 97 00:05:15,320 --> 00:05:19,640 Speaker 2: few pages and withheld more than one hundred due to 98 00:05:19,680 --> 00:05:23,919 Speaker 2: an ongoing investigation. And the fighting begins with Federal Reserve 99 00:05:24,040 --> 00:05:26,760 Speaker 2: in terms of trying to probably lose these records. So 100 00:05:26,800 --> 00:05:30,839 Speaker 2: to quote the song Waiting Room by the great post 101 00:05:30,839 --> 00:05:36,000 Speaker 2: hardcore band Fugazi, I am a patient boy, Oh wait, 102 00:05:36,120 --> 00:05:40,920 Speaker 2: I wait, I wait, I wait. So I waited until 103 00:05:41,400 --> 00:05:44,160 Speaker 2: I got a nod from sources that the investigation was over, 104 00:05:44,480 --> 00:05:48,560 Speaker 2: and then in February twenty twenty four, I filed a 105 00:05:48,640 --> 00:05:52,160 Speaker 2: new request for some documents that I'd requested a year earlier, 106 00:05:52,480 --> 00:05:56,240 Speaker 2: and this time I hit paid dirt. I have to 107 00:05:56,279 --> 00:05:58,200 Speaker 2: hand it to the FED. They turn over a lot 108 00:05:58,240 --> 00:06:02,159 Speaker 2: of documents that really kind of lay out timeline, investigative reports, 109 00:06:02,240 --> 00:06:05,440 Speaker 2: staff emails with dates and timestamps, and I got to 110 00:06:05,480 --> 00:06:07,720 Speaker 2: tell you, the whole thing kind of played out like 111 00:06:07,760 --> 00:06:10,039 Speaker 2: a movie. So we're going to tell you parts of 112 00:06:10,080 --> 00:06:12,640 Speaker 2: it like it's a movie for your ears. We've even 113 00:06:12,640 --> 00:06:15,840 Speaker 2: invited a few comedians to read the emails. Oh yeah, 114 00:06:15,960 --> 00:06:20,080 Speaker 2: like who well, Matt, We've got Josh Gondleman, Katherine Blandford, 115 00:06:20,200 --> 00:06:21,160 Speaker 2: and Adam Gilbert. 116 00:06:21,320 --> 00:06:22,920 Speaker 3: Awesome, I'm so excited. 117 00:06:23,240 --> 00:06:28,599 Speaker 2: All right, here we go, Act one, Scene one. Just 118 00:06:28,680 --> 00:06:31,920 Speaker 2: after eight am on the morning of January tenth, twenty 119 00:06:32,040 --> 00:06:36,720 Speaker 2: twenty three, Powell's assistant received an email from Ukrainian email 120 00:06:36,720 --> 00:06:43,200 Speaker 2: address subject President of Ukraine Chairman Powell request it says 121 00:06:43,360 --> 00:06:46,000 Speaker 2: as read by Josh Gondleman, the way he would read 122 00:06:46,040 --> 00:06:49,000 Speaker 2: it if he was the one who wrote it, Dear redacted. 123 00:06:50,360 --> 00:06:52,200 Speaker 2: The employee's names were withheld. 124 00:06:52,360 --> 00:06:55,160 Speaker 4: President of Ukraine Vladimir Zelenski would like to have a 125 00:06:55,160 --> 00:07:00,560 Speaker 4: conversation with Chairman of the Federal Reserve System, Honorable Jarre Powell. 126 00:07:00,680 --> 00:07:03,919 Speaker 2: The email signature says it's from the Deputy Head of 127 00:07:03,960 --> 00:07:08,440 Speaker 2: the Office of President Selenski, a man named Kirilo Timoshenko. 128 00:07:08,680 --> 00:07:10,320 Speaker 2: He says Lensky wants to. 129 00:07:10,320 --> 00:07:13,680 Speaker 4: Personally congratulate him with recent holidays. 130 00:07:13,400 --> 00:07:16,280 Speaker 2: So wish him a happy New York Yes, and discuss 131 00:07:16,320 --> 00:07:18,560 Speaker 2: common issues and plans, such as. 132 00:07:18,960 --> 00:07:21,200 Speaker 4: The impact of war in Ukraine on the world economy 133 00:07:21,600 --> 00:07:24,960 Speaker 4: and forecast on the economic situation in the world. 134 00:07:25,240 --> 00:07:28,920 Speaker 3: Wait, waito, Well, a foreign government wants to know what 135 00:07:29,000 --> 00:07:33,680 Speaker 3: the FEDS forecast of the future, Like everybody wants to 136 00:07:33,720 --> 00:07:36,400 Speaker 3: know that, right, right, isn't that like the thing they 137 00:07:36,480 --> 00:07:39,240 Speaker 3: don't do or when they do, it's like very very 138 00:07:39,280 --> 00:07:40,480 Speaker 3: carefully crafted. 139 00:07:40,720 --> 00:07:43,720 Speaker 2: It's like, first of all, this is non public info. 140 00:07:43,800 --> 00:07:47,760 Speaker 2: I mean, yeah, totally, Howell probably does have a forecast 141 00:07:47,800 --> 00:07:50,400 Speaker 2: on the world economy based on you know, lots of 142 00:07:50,440 --> 00:07:53,920 Speaker 2: insider information, I hope. So, so the fact that they 143 00:07:53,920 --> 00:07:56,640 Speaker 2: even made that pitch, and you know, the assistant's like. 144 00:07:56,680 --> 00:07:59,800 Speaker 3: Right, so it's congratulations on the holidays. We want to 145 00:07:59,800 --> 00:08:02,280 Speaker 3: talk to you about the impact that the Ukrainian war 146 00:08:02,360 --> 00:08:04,320 Speaker 3: is having in the world economy, and we want to 147 00:08:04,360 --> 00:08:06,760 Speaker 3: know whether we should buy gold or what we should 148 00:08:06,760 --> 00:08:09,760 Speaker 3: do in the future before you make any public announceence. Okay, 149 00:08:09,840 --> 00:08:11,560 Speaker 3: all right, I'm with you, continued. 150 00:08:11,640 --> 00:08:14,520 Speaker 2: He's like Zelenski just had a productive chat with the 151 00:08:14,560 --> 00:08:19,000 Speaker 2: President of the European Central Bank, Christine Legard. It went 152 00:08:19,160 --> 00:08:21,440 Speaker 2: so well. We want to do it again with Powell. 153 00:08:21,520 --> 00:08:24,280 Speaker 4: We are ready to organize a video or telephone conversation 154 00:08:24,480 --> 00:08:27,080 Speaker 4: at any time convenient for your side. I will wait 155 00:08:27,120 --> 00:08:31,840 Speaker 4: for your response with best regards. Kirillo Timshenko. 156 00:08:32,480 --> 00:08:35,320 Speaker 3: Is Timyshenko a real person? 157 00:08:35,840 --> 00:08:38,320 Speaker 2: Yes, that's the real name of an official for the 158 00:08:38,400 --> 00:08:43,199 Speaker 2: Ukrainian government. Four minutes later, Powell's assistant responded with this email, 159 00:08:43,320 --> 00:08:44,800 Speaker 2: as read by Catherine Blandford. 160 00:08:45,080 --> 00:08:47,400 Speaker 5: We are in receipt of the request and we will 161 00:08:47,440 --> 00:08:48,120 Speaker 5: revert back. 162 00:08:48,600 --> 00:08:50,280 Speaker 3: So do we have any idea how they got this 163 00:08:50,360 --> 00:08:51,079 Speaker 3: email address? 164 00:08:51,280 --> 00:08:55,360 Speaker 2: Yes, they got it from someone at the European Central Bank. 165 00:08:55,720 --> 00:08:58,800 Speaker 2: According to the rest of the email thread, if Leguard 166 00:08:58,880 --> 00:09:01,199 Speaker 2: took the meeting, Powell probably should too. 167 00:09:01,480 --> 00:09:05,080 Speaker 3: Do we know whether Powell has had other such calls 168 00:09:05,080 --> 00:09:06,400 Speaker 3: with other world leaders? 169 00:09:06,400 --> 00:09:06,520 Speaker 2: Like? 170 00:09:06,600 --> 00:09:09,400 Speaker 3: Is this a normal common thing for him to be doing? 171 00:09:09,679 --> 00:09:14,040 Speaker 2: Certainly other officials such as Christine Legard. I mean that 172 00:09:14,520 --> 00:09:17,960 Speaker 2: seems normal, but you know, speaking to the President of Ukraine. 173 00:09:18,040 --> 00:09:20,840 Speaker 2: I mean, yeah, it's I haven't seen any of it. 174 00:09:21,559 --> 00:09:25,000 Speaker 2: A few hours later, the assistant responded again, Powell had 175 00:09:25,000 --> 00:09:28,120 Speaker 2: agreed to the meeting. The assistant proposed dates and times. 176 00:09:28,280 --> 00:09:32,040 Speaker 2: They settled on January nineteenth, twenty twenty three, at nine 177 00:09:32,120 --> 00:09:33,640 Speaker 2: am Washington time. 178 00:09:34,360 --> 00:09:37,240 Speaker 3: All right, So they're trying to sell it by being like, hey, 179 00:09:37,800 --> 00:09:41,400 Speaker 3: we know Zelensky previously talked to the European Central Bank? 180 00:09:41,960 --> 00:09:45,160 Speaker 3: Did that actually happen? Was there actually such a meeting? 181 00:09:45,280 --> 00:09:48,719 Speaker 2: Well, we'll get into that. A lot happened in those 182 00:09:48,800 --> 00:09:49,319 Speaker 2: nine days. 183 00:09:49,440 --> 00:09:52,520 Speaker 6: Concern is mounting this morning over a new COVID sub 184 00:09:52,600 --> 00:09:55,400 Speaker 6: variant that is rapidly spreading across the country. 185 00:09:56,640 --> 00:09:58,599 Speaker 2: About an hour and a half before the call was 186 00:09:58,640 --> 00:10:01,600 Speaker 2: scheduled to begin, one at the FED wrote an email 187 00:10:01,760 --> 00:10:03,199 Speaker 2: with a change of plans. 188 00:10:03,760 --> 00:10:07,720 Speaker 5: Their Kiri low chair Palell has tested positive for COVID. 189 00:10:08,400 --> 00:10:11,439 Speaker 5: He is very much looking forward to talking with President Zelenski, 190 00:10:12,120 --> 00:10:15,600 Speaker 5: but we would appreciate if the call today could be postponed. 191 00:10:16,000 --> 00:10:18,600 Speaker 5: We will work to reschedule the call as soon as possible. 192 00:10:18,960 --> 00:10:22,640 Speaker 5: Thank you for your understanding, Sincerely redacted. 193 00:10:25,920 --> 00:10:28,200 Speaker 3: Wait, do the records tell us what this person is 194 00:10:28,240 --> 00:10:29,720 Speaker 3: doing when they're sending the emails? 195 00:10:30,080 --> 00:10:35,320 Speaker 2: No, Matt. Unfortunately these records do not include vibes. But 196 00:10:35,400 --> 00:10:39,400 Speaker 2: it's not hard to imagine the esteemed venues where important 197 00:10:39,440 --> 00:10:44,400 Speaker 2: government work takes place. So we've supplied some Less than 198 00:10:44,440 --> 00:10:46,520 Speaker 2: twenty minutes later, Dear. 199 00:10:46,480 --> 00:10:49,439 Speaker 4: Redacted, President Zelenski wish to share Powell. 200 00:10:49,160 --> 00:10:50,200 Speaker 3: A speedy recovery. 201 00:10:50,520 --> 00:10:54,840 Speaker 4: Of course, let's move this conversation to a more favorable time. Also, 202 00:10:55,200 --> 00:10:58,559 Speaker 4: I know that this conversation is very important for President Zelenski, 203 00:10:58,800 --> 00:11:00,960 Speaker 4: and we are ready to arrange it at a convenient 204 00:11:01,040 --> 00:11:03,400 Speaker 4: time for Jair Powell as soon as possible. 205 00:11:04,160 --> 00:11:07,560 Speaker 2: January twenty fourth, twenty twenty three was the new date 206 00:11:07,600 --> 00:11:10,920 Speaker 2: of the call. So January twenty fourth comes and Powell 207 00:11:11,000 --> 00:11:13,600 Speaker 2: is still recovering from COVID at home, but he's well 208 00:11:13,720 --> 00:11:16,160 Speaker 2: enough to put on a black sport jacket over a 209 00:11:16,200 --> 00:11:19,400 Speaker 2: white collared shirt and gold tie to hop on the 210 00:11:19,480 --> 00:11:20,720 Speaker 2: video call, and. 211 00:11:20,840 --> 00:11:22,600 Speaker 6: We just say, it's a great honor to speak to you. 212 00:11:22,920 --> 00:11:25,600 Speaker 2: Now, we don't know what Powell is actually staring at 213 00:11:25,679 --> 00:11:28,559 Speaker 2: right here, because the recording doesn't show us a Lensky 214 00:11:28,640 --> 00:11:31,960 Speaker 2: side of the video call, but we can see Powell. 215 00:11:32,200 --> 00:11:34,880 Speaker 2: He's thin with a full head of gray white hair. 216 00:11:35,280 --> 00:11:38,160 Speaker 2: His virtual background appears to place him in a tranquil 217 00:11:38,240 --> 00:11:42,040 Speaker 2: reading nook with white walls, a yuppie white couch, and 218 00:11:42,120 --> 00:11:46,120 Speaker 2: a dainty white tea set overlooking us accluded forest. 219 00:11:46,240 --> 00:11:48,439 Speaker 3: It's like, I know you're living in a war zone, 220 00:11:48,440 --> 00:11:50,720 Speaker 3: but look at this great environment that I get to 221 00:11:50,760 --> 00:11:51,120 Speaker 3: live in. 222 00:11:51,400 --> 00:11:54,560 Speaker 6: I'm aware that Ukraine's suffering. People like me just want 223 00:11:54,559 --> 00:11:56,480 Speaker 6: to support you in any way we can, but I 224 00:11:56,520 --> 00:11:59,560 Speaker 6: have limited ways to do that in my professional job. 225 00:12:00,120 --> 00:12:02,160 Speaker 2: All is clear from the jump that if this call 226 00:12:02,280 --> 00:12:06,120 Speaker 2: is about money for the war, there isn't much to discuss, 227 00:12:06,120 --> 00:12:06,680 Speaker 2: no matter. 228 00:12:07,000 --> 00:12:09,520 Speaker 7: I think that you are a wise person, one of 229 00:12:09,559 --> 00:12:13,360 Speaker 7: the wisest person in the world. 230 00:12:13,440 --> 00:12:15,720 Speaker 2: He asks about whether Russian sanctions are working. 231 00:12:16,080 --> 00:12:19,040 Speaker 6: It seems like the Russians have been able to avoid 232 00:12:19,440 --> 00:12:21,520 Speaker 6: the harshest application of the sanctions. 233 00:12:21,679 --> 00:12:24,560 Speaker 2: He debriefed Powell on his call with Christine Legard, who 234 00:12:24,600 --> 00:12:27,120 Speaker 2: he claims, said the United States can win any war 235 00:12:27,200 --> 00:12:28,160 Speaker 2: at any costs. 236 00:12:28,280 --> 00:12:31,959 Speaker 7: There will be only one winner who has a big gun. 237 00:12:32,200 --> 00:12:33,520 Speaker 7: She told me that I like that. 238 00:12:33,840 --> 00:12:37,600 Speaker 2: He even solicited Powell's opinion on his counterpart, Russian Central 239 00:12:37,640 --> 00:12:41,160 Speaker 2: bankhead Alvira Nebulina. She's quite good at her job. 240 00:12:41,240 --> 00:12:42,680 Speaker 6: She's extraordinarily capable. 241 00:12:42,840 --> 00:12:45,520 Speaker 2: At one point, the discussion veered into one of the 242 00:12:45,640 --> 00:12:49,640 Speaker 2: touchiest subjects pertaining to the US economy, interest rates. 243 00:12:49,880 --> 00:12:53,640 Speaker 7: If the rate is raised further, the standards of living 244 00:12:53,760 --> 00:12:56,520 Speaker 7: of the population will fall. So how much should it 245 00:12:56,679 --> 00:13:00,080 Speaker 7: fall in order for the FETE to stop raising. 246 00:12:59,800 --> 00:13:04,840 Speaker 2: The Powell sort of grimaced and looked off screen, perhaps 247 00:13:04,840 --> 00:13:05,920 Speaker 2: surprised by the question. 248 00:13:06,080 --> 00:13:09,600 Speaker 3: Why on earth would Zelensky be asking these questions? Isn't 249 00:13:09,600 --> 00:13:12,000 Speaker 3: Powell like, what the hell does this have to do 250 00:13:12,160 --> 00:13:15,000 Speaker 3: with Ukraine? He should have been very suspicious at this point. 251 00:13:15,200 --> 00:13:18,680 Speaker 6: The market is already pricing in two more quarter percentage 252 00:13:18,679 --> 00:13:21,480 Speaker 6: point rate hikes. We'll look around after we make those 253 00:13:21,520 --> 00:13:24,040 Speaker 6: two and we'll say, you know, should we do any more? 254 00:13:24,200 --> 00:13:25,840 Speaker 6: And then the question will be how long do we 255 00:13:25,920 --> 00:13:27,880 Speaker 6: keep rates at this level? I think we'll keep him 256 00:13:27,920 --> 00:13:28,959 Speaker 6: there for quite some time. 257 00:13:29,600 --> 00:13:31,160 Speaker 3: Is this all things he's already said? 258 00:13:31,200 --> 00:13:31,320 Speaker 6: Like? 259 00:13:31,440 --> 00:13:34,000 Speaker 3: Is he just telling him what he's already publicly said? 260 00:13:34,520 --> 00:13:37,080 Speaker 2: Well, that's the question. Well, let's come back to that. 261 00:13:38,160 --> 00:13:41,199 Speaker 2: And then comes the weird asks. 262 00:13:41,080 --> 00:13:42,800 Speaker 3: We haven't gotten to the weird part yet. 263 00:13:43,040 --> 00:13:44,640 Speaker 2: No, there yet. 264 00:13:44,720 --> 00:13:46,760 Speaker 3: Okay, all right, I'm so excited. Let's have it. 265 00:13:47,080 --> 00:13:50,440 Speaker 7: If you could present me a printing press, I would 266 00:13:50,480 --> 00:13:52,760 Speaker 7: be really happy. 267 00:13:53,480 --> 00:13:56,360 Speaker 6: We have one of those, but but we keep it 268 00:13:56,400 --> 00:13:56,960 Speaker 6: in the basement. 269 00:13:57,320 --> 00:14:01,199 Speaker 7: Oh okay, you could also build a fourteenth for bank 270 00:14:01,400 --> 00:14:04,800 Speaker 7: or the Fed on our territory. 271 00:14:04,880 --> 00:14:05,440 Speaker 5: We could do that. 272 00:14:06,320 --> 00:14:07,280 Speaker 3: Let me come back to you on that. 273 00:14:07,400 --> 00:14:09,480 Speaker 6: Well, maybe we'll have a reserve bank and keep. 274 00:14:10,960 --> 00:14:15,360 Speaker 3: He wants a pretty much. Wait, he's asking Powell if 275 00:14:15,360 --> 00:14:18,200 Speaker 3: he can have a printing press to print money. Is 276 00:14:18,240 --> 00:14:18,680 Speaker 3: that right? 277 00:14:19,160 --> 00:14:26,000 Speaker 2: Yes, Diet, it's hilarious. The thirty minute call was zesty 278 00:14:26,560 --> 00:14:29,560 Speaker 2: to say, all thirty minute. 279 00:14:29,320 --> 00:14:32,280 Speaker 3: Call man, that's who should be running the US government, 280 00:14:32,360 --> 00:14:34,480 Speaker 3: is these pranksters? Because it's pretty good. 281 00:14:35,840 --> 00:14:37,520 Speaker 7: I was really happy to talk to you. 282 00:14:38,000 --> 00:14:40,720 Speaker 2: And that was it. And mind you that this was 283 00:14:41,160 --> 00:14:45,080 Speaker 2: a two week ordeal of setting this up. According to 284 00:14:45,120 --> 00:14:48,240 Speaker 2: the documents the federal least, there was never once a 285 00:14:48,280 --> 00:14:54,000 Speaker 2: moment where anyone said, you know, hey, let's check out 286 00:14:54,680 --> 00:14:59,880 Speaker 2: the email addresses or or you know, have our security team, 287 00:15:00,240 --> 00:15:02,960 Speaker 2: you know, confirm any of this. It was just through 288 00:15:03,120 --> 00:15:06,160 Speaker 2: email setting it up. It was pretty easy. 289 00:15:06,480 --> 00:15:09,240 Speaker 3: So no one on Powell's staff has ever seen the 290 00:15:09,280 --> 00:15:10,040 Speaker 3: movie Borat? 291 00:15:10,200 --> 00:15:12,440 Speaker 2: Come on that this is a fan. You think they're 292 00:15:12,480 --> 00:15:14,040 Speaker 2: sitting around watching Borat? 293 00:15:14,240 --> 00:15:15,560 Speaker 3: I mean somebody should. 294 00:15:18,480 --> 00:15:22,240 Speaker 2: Then three days after the meeting, that's when the unraveling began, 295 00:15:22,680 --> 00:15:30,920 Speaker 2: which you'll hear all about after the break. It's six 296 00:15:31,040 --> 00:15:34,360 Speaker 2: fifty nine am on January twenty seventh, twenty twenty three. 297 00:15:34,960 --> 00:15:39,479 Speaker 2: That's when a message lights up deer predacted. 298 00:15:40,520 --> 00:15:43,800 Speaker 4: President Zelenski would like to thank Chair Powell once again 299 00:15:43,920 --> 00:15:47,880 Speaker 4: for this important conversation for us and express gratitude for 300 00:15:47,960 --> 00:15:48,960 Speaker 4: his professionalism. 301 00:15:49,320 --> 00:15:51,120 Speaker 2: He has a small request. 302 00:15:51,480 --> 00:15:55,800 Speaker 4: Could you connect us with Secretary of the Treasury Janet 303 00:15:55,840 --> 00:15:59,400 Speaker 4: Yellen so that President Zelenski could discuss the economic situation 304 00:15:59,480 --> 00:16:04,800 Speaker 4: with hurt. President Zelenski would like to hold this conversation informally, 305 00:16:05,360 --> 00:16:08,880 Speaker 4: without the attention of the press. Therefore, we thought that 306 00:16:09,000 --> 00:16:12,040 Speaker 4: through you it would be fast and confidential. 307 00:16:13,280 --> 00:16:17,360 Speaker 2: The assistant did as requested and shared Yellen's contact information. 308 00:16:17,920 --> 00:16:19,520 Speaker 3: I can't wait to hear how that went over. 309 00:16:20,840 --> 00:16:25,360 Speaker 2: Then, a couple of weeks later, on February tenth, something 310 00:16:25,400 --> 00:16:29,640 Speaker 2: appeared to have spooked Powell's assistant. They emailed a person 311 00:16:29,680 --> 00:16:32,920 Speaker 2: in Leguard's office at the European Central Bank to ask 312 00:16:32,960 --> 00:16:35,040 Speaker 2: about Timyshenko's initial outreach. 313 00:16:35,480 --> 00:16:39,240 Speaker 8: Dear redacted, I just want to confirm that the email 314 00:16:39,280 --> 00:16:43,200 Speaker 8: below Sea Trail is a legitimate email from you, and 315 00:16:43,200 --> 00:16:46,640 Speaker 8: that a phone call with President Zelensky did occur from 316 00:16:46,760 --> 00:16:47,560 Speaker 8: your office. 317 00:16:47,960 --> 00:16:49,840 Speaker 3: Best regards, redacted. 318 00:16:50,880 --> 00:16:54,880 Speaker 2: Then fifteen minutes later, Leguard's office responded, as read by 319 00:16:54,920 --> 00:16:59,520 Speaker 2: Adam Gilbert de redacted, and it sure didn't quell anyone's anxiety. 320 00:17:00,120 --> 00:17:01,160 Speaker 3: She was a bit harry. 321 00:17:01,840 --> 00:17:05,159 Speaker 9: We were in touch with mister Timoshenko and a video 322 00:17:05,200 --> 00:17:08,520 Speaker 9: call between President Zelenski and Madame mcguard took place on 323 00:17:08,680 --> 00:17:09,879 Speaker 9: sixth January. 324 00:17:10,160 --> 00:17:13,480 Speaker 2: But in the meantime they explained that they'd recently learned 325 00:17:13,480 --> 00:17:16,560 Speaker 2: that Timoshenko had resigned from this position and shared a 326 00:17:16,600 --> 00:17:20,199 Speaker 2: Wikipedia link to prove it. Apparently he left office on 327 00:17:20,320 --> 00:17:24,239 Speaker 2: January twenty third, the day before the Powell meeting. They 328 00:17:24,280 --> 00:17:27,480 Speaker 2: had since heard from Timoshenko or someone claiming to be him, 329 00:17:27,920 --> 00:17:29,320 Speaker 2: which raised some alarm bells. 330 00:17:29,440 --> 00:17:33,560 Speaker 9: So I assume this is not true, seeing that mister 331 00:17:33,600 --> 00:17:36,880 Speaker 9: Timoshenko now left the office of President Zelensky. In all 332 00:17:36,920 --> 00:17:42,000 Speaker 9: the above, I would be extra cautious when handling his request. 333 00:17:42,320 --> 00:17:43,880 Speaker 2: Kind regards, redacted. 334 00:17:44,280 --> 00:17:47,280 Speaker 3: Oh, so in other words, Leguard's office isn't sure if 335 00:17:47,280 --> 00:17:50,000 Speaker 3: they spoke to the real Timoshenko correct. 336 00:17:50,400 --> 00:17:53,440 Speaker 2: Seven minutes later, Powell's assistant wrote back. 337 00:17:54,240 --> 00:17:58,320 Speaker 3: Thanks redacted. This is helpful. 338 00:18:00,840 --> 00:18:03,840 Speaker 2: You can almost feel the panic beginning to set in. 339 00:18:04,200 --> 00:18:07,560 Speaker 3: What is it that raised suspicions? Do we know? And 340 00:18:07,640 --> 00:18:10,800 Speaker 3: it wasn't for example, could you please send us a 341 00:18:10,880 --> 00:18:13,480 Speaker 3: printing press so we could print it balance. 342 00:18:13,400 --> 00:18:16,360 Speaker 2: Or build a Federal Reserve bank in Ukraine. 343 00:18:16,680 --> 00:18:19,200 Speaker 3: That wasn't what tipped it off, because they already gave 344 00:18:19,240 --> 00:18:22,680 Speaker 3: over Yellen's contact information after that, so it must have 345 00:18:22,760 --> 00:18:23,880 Speaker 3: been something after that. 346 00:18:24,200 --> 00:18:27,520 Speaker 2: Have you ever had that moment where suddenly, like an 347 00:18:27,520 --> 00:18:30,239 Speaker 2: antenna just goes up, It just suddenly hits you like, 348 00:18:30,480 --> 00:18:33,399 Speaker 2: was this all a ruse? And that's how I imagine this 349 00:18:33,440 --> 00:18:36,520 Speaker 2: assistant was feeling, just I've been duped. 350 00:18:36,680 --> 00:18:39,040 Speaker 3: Maybe that really wasn't a Nigerian prince? 351 00:18:39,440 --> 00:18:43,479 Speaker 2: Yeah, exactly exactly. On the same day as the email 352 00:18:43,520 --> 00:18:47,040 Speaker 2: exchange to the European Central Bank, the Federal Reserve Board 353 00:18:47,080 --> 00:18:50,479 Speaker 2: of Governors lodged a complaint with the agency's Office of 354 00:18:50,480 --> 00:18:56,000 Speaker 2: Inspector General. Four days later, on February fourteenth, they launched 355 00:18:56,040 --> 00:19:00,720 Speaker 2: an investigation in part to sniff out an imposter. That 356 00:19:00,840 --> 00:19:03,240 Speaker 2: question would answer itself. 357 00:19:03,040 --> 00:19:04,760 Speaker 6: I'm glad you've made time to speak to me. 358 00:19:05,880 --> 00:19:09,760 Speaker 2: On April twenty six, the video appeared on Rootube. 359 00:19:10,160 --> 00:19:13,920 Speaker 3: Is it Russian YouTube? I mean that's what it sounds like, exactly. 360 00:19:14,000 --> 00:19:14,399 Speaker 2: I got it. 361 00:19:14,440 --> 00:19:16,720 Speaker 3: I got it right to see. They'd never fool me. 362 00:19:17,080 --> 00:19:19,800 Speaker 7: Your opinion is really important for me, So I would 363 00:19:19,840 --> 00:19:22,640 Speaker 7: like to ask you, what does your. 364 00:19:22,600 --> 00:19:26,520 Speaker 2: Use turns out? The impostors were two well known pranksters 365 00:19:26,600 --> 00:19:30,280 Speaker 2: nicknamed Vivan and Lexis. They've been pulling stunts to embarrass 366 00:19:30,280 --> 00:19:31,960 Speaker 2: world leaders for years. 367 00:19:32,119 --> 00:19:32,640 Speaker 3: I love it. 368 00:19:32,760 --> 00:19:37,000 Speaker 2: In twenty seventeen, they impersonated another Ukrainian official on a 369 00:19:37,040 --> 00:19:40,960 Speaker 2: call with then Congressman Adam Schiff Okay, what's the nature 370 00:19:40,960 --> 00:19:43,760 Speaker 2: of the com from and convinced him that Putin was 371 00:19:43,800 --> 00:19:46,600 Speaker 2: blackmailing Trump to cancel Russian sanctions. 372 00:19:46,640 --> 00:19:48,960 Speaker 7: Well, there were pictures of naked Trump. 373 00:19:49,440 --> 00:19:53,639 Speaker 2: Okay shifts. People who said they thought the call was 374 00:19:53,680 --> 00:19:56,680 Speaker 2: bogus told the number of news outlets that they reported 375 00:19:56,680 --> 00:20:00,119 Speaker 2: the call to law enforcement. The prankster struck again in 376 00:20:00,119 --> 00:20:01,040 Speaker 2: twenty twenty. 377 00:20:01,280 --> 00:20:05,560 Speaker 7: My friend as singer Billie Eilish and rapper Kenny West 378 00:20:05,760 --> 00:20:07,119 Speaker 7: are also fans of you. 379 00:20:07,600 --> 00:20:11,360 Speaker 2: They got Bernie Sanders by posing as Greta Thunberg and 380 00:20:11,400 --> 00:20:15,159 Speaker 2: her father, saying they had some creative ways to endorse 381 00:20:15,160 --> 00:20:15,840 Speaker 2: his campaign. 382 00:20:16,040 --> 00:20:18,920 Speaker 3: They would like to do a cool rap. Rap music 383 00:20:19,040 --> 00:20:20,040 Speaker 3: is popular now. 384 00:20:20,320 --> 00:20:22,040 Speaker 7: Rap music is very popular. 385 00:20:22,080 --> 00:20:25,560 Speaker 2: It's really very Sanders saying that is. The Sanders campaign 386 00:20:25,640 --> 00:20:29,080 Speaker 2: didn't comment on the authenticity of the call, but Vavana 387 00:20:29,080 --> 00:20:32,280 Speaker 2: and Lexis had a hot streak of posing as Zelenski. 388 00:20:31,960 --> 00:20:34,320 Speaker 7: As your fun is Dumbledore Gay. 389 00:20:34,320 --> 00:20:37,440 Speaker 2: In twenty twenty two, they called JK Rowling. 390 00:20:37,240 --> 00:20:45,879 Speaker 7: I ordered that our fighters right avocada afradavra. Yeah, yeah, 391 00:20:46,240 --> 00:20:48,840 Speaker 7: on the on the missiles that we will launch it. 392 00:20:48,960 --> 00:20:50,480 Speaker 3: So how do you like this joke? 393 00:20:50,800 --> 00:20:52,760 Speaker 6: I love the joke. I love the joke. 394 00:20:52,920 --> 00:20:57,240 Speaker 2: A spokesperson said, Rolling was a victim of a distasteful hoax. 395 00:20:58,080 --> 00:21:01,040 Speaker 3: Can we put in some audio of with Zile actually 396 00:21:01,119 --> 00:21:05,840 Speaker 3: sounds like am I crazy? The guy doesn't sound anything 397 00:21:05,960 --> 00:21:06,640 Speaker 3: like him at all? 398 00:21:06,920 --> 00:21:10,119 Speaker 2: Okay, well, here's the real Zolensky. 399 00:21:09,680 --> 00:21:13,080 Speaker 3: That's said the biggest donata of support and of peace. 400 00:21:13,240 --> 00:21:15,560 Speaker 3: We have to be very open to understand how to 401 00:21:15,640 --> 00:21:16,400 Speaker 3: stop the war. 402 00:21:16,560 --> 00:21:20,600 Speaker 2: Does not sound like Zelenski. I haven't seen anything like this, 403 00:21:20,960 --> 00:21:25,400 Speaker 2: And the reality is we were never supposed to see this, right, 404 00:21:25,560 --> 00:21:27,760 Speaker 2: you know, this was supposed to be a private conversation 405 00:21:28,119 --> 00:21:31,160 Speaker 2: with who Powell fought was Zolensky. So what these pranctures 406 00:21:31,160 --> 00:21:35,080 Speaker 2: throw out there publicly was something we were not supposed 407 00:21:35,080 --> 00:21:39,719 Speaker 2: to get any insight to. The video went viral, and 408 00:21:39,760 --> 00:21:42,719 Speaker 2: when the news made it to the US, other journalists 409 00:21:42,760 --> 00:21:46,879 Speaker 2: inundated the FED spokesperson with questions, I wanted to verify 410 00:21:46,880 --> 00:21:48,800 Speaker 2: a Bloomberg report and see if you had a statement 411 00:21:48,840 --> 00:21:55,040 Speaker 2: about January with Russian plans. For the most part, the 412 00:21:55,080 --> 00:21:58,919 Speaker 2: spokesperson brushed the incident off. She told one Fox reporter 413 00:21:59,119 --> 00:22:02,800 Speaker 2: that this happened to number of officials, including Leguard. 414 00:22:03,280 --> 00:22:05,160 Speaker 3: So they did get Leguard. 415 00:22:05,400 --> 00:22:08,720 Speaker 2: They did a video of the pranksters posing as Zelensky, 416 00:22:08,840 --> 00:22:11,920 Speaker 2: dropped a month before the Powell video. Leguard didn't seem 417 00:22:11,920 --> 00:22:15,680 Speaker 2: to make any public comments about it, though, okay, continue, 418 00:22:15,760 --> 00:22:19,119 Speaker 2: The FED spokesperson added, quote, I really hope that Fox 419 00:22:19,240 --> 00:22:23,440 Speaker 2: Business might decide not to give fraudulent hoaxes more attention 420 00:22:23,760 --> 00:22:26,960 Speaker 2: and legitimacy by further spreading their work. 421 00:22:27,800 --> 00:22:30,320 Speaker 3: And what happened? Did Fox refrain from doing a story? 422 00:22:30,440 --> 00:22:34,320 Speaker 2: Oh, of course not everyone reported on this. Beyond that, 423 00:22:34,400 --> 00:22:37,800 Speaker 2: there wasn't much more to learn about the issue until 424 00:22:38,359 --> 00:22:42,479 Speaker 2: I got the documents. Do you want to know what 425 00:22:42,520 --> 00:22:45,760 Speaker 2: they said? Mat Yes. In November twenty twenty three, the 426 00:22:45,800 --> 00:22:48,120 Speaker 2: Inspector General issued their report. 427 00:22:48,280 --> 00:22:51,840 Speaker 3: Do you usually find that igs are like on the 428 00:22:51,840 --> 00:22:54,520 Speaker 3: more generous side of how much they'll give you versus 429 00:22:54,520 --> 00:22:55,439 Speaker 3: how much they'll withhold? 430 00:22:55,600 --> 00:22:58,680 Speaker 2: Well, it depends on the IG which agency you're dealing with. 431 00:22:59,480 --> 00:23:02,199 Speaker 2: Keep in mind, and one of the second Trump administration's 432 00:23:02,240 --> 00:23:05,720 Speaker 2: first moves was firing the Inspectors General from a bunch 433 00:23:05,760 --> 00:23:09,040 Speaker 2: of departments and agencies. But for this request and a 434 00:23:09,040 --> 00:23:11,520 Speaker 2: lot of others, I filed. The Federal Reserve has been 435 00:23:11,560 --> 00:23:15,280 Speaker 2: transparent in terms of what their IG will disclose. What 436 00:23:15,359 --> 00:23:18,560 Speaker 2: they uncovered wasn't exactly espionage, but it was a stark 437 00:23:18,640 --> 00:23:21,200 Speaker 2: reality that all it takes to trick what we hope 438 00:23:21,280 --> 00:23:26,000 Speaker 2: is a secure institution the United State Central Banking System 439 00:23:26,520 --> 00:23:30,960 Speaker 2: is charm timing and a thimble of plausible deniability to 440 00:23:31,119 --> 00:23:34,679 Speaker 2: slip past the gate. The purpose of the investigation was 441 00:23:34,720 --> 00:23:39,879 Speaker 2: to determine if any quote, criminal statutes, regulations, or agency 442 00:23:39,960 --> 00:23:44,520 Speaker 2: policies within were violated. This was an embarrassing breach. So 443 00:23:44,640 --> 00:23:47,159 Speaker 2: the questions are, how did it happen, who approved it? 444 00:23:47,520 --> 00:23:51,080 Speaker 2: Where warning signs missed? The Inspector General got to work, 445 00:23:51,760 --> 00:23:55,280 Speaker 2: not with flashing lights or ray jackets, but with something 446 00:23:55,320 --> 00:24:01,400 Speaker 2: more bureaucratic and arguably more invasive, email, lots of it. 447 00:24:02,480 --> 00:24:05,720 Speaker 2: They pulled the thread back to January tenth, twenty twenty three, 448 00:24:06,200 --> 00:24:09,000 Speaker 2: to the very first message that arrived at the FED 449 00:24:09,200 --> 00:24:12,680 Speaker 2: on behalf of the impersonator. Then they cast a wide net. 450 00:24:13,160 --> 00:24:16,560 Speaker 2: Anyone who touched the meeting, scheduled it, heard about it, 451 00:24:16,720 --> 00:24:19,640 Speaker 2: mentioned it in a reply, all had their inbox pulled 452 00:24:19,640 --> 00:24:23,280 Speaker 2: into the drag net. Behind the scenes, eleven employees across 453 00:24:23,320 --> 00:24:28,160 Speaker 2: three departments were summoned for interviews, including Chair Powell himself. 454 00:24:29,080 --> 00:24:32,280 Speaker 2: The names of some others are redacted, but the bewilderment 455 00:24:32,440 --> 00:24:36,960 Speaker 2: wasn't because after all of that, investigators found quote no 456 00:24:37,119 --> 00:24:41,760 Speaker 2: violations of law, regulation or policy associated with this matter. 457 00:24:42,520 --> 00:24:45,400 Speaker 2: Sounds a bit like nothing to see here, right. 458 00:24:45,600 --> 00:24:49,360 Speaker 3: Law and regulation? I could see that. How is there 459 00:24:49,440 --> 00:24:52,159 Speaker 3: not a policy that was violated here? Like, isn't there 460 00:24:52,200 --> 00:24:55,560 Speaker 3: a policy that's like don't give interviews with people that 461 00:24:55,600 --> 00:24:56,240 Speaker 3: aren't really. 462 00:24:56,040 --> 00:24:59,120 Speaker 2: Who they say to be. Well, here's the real issue. 463 00:24:59,480 --> 00:25:02,879 Speaker 2: It's on clear if there were any protocols in place 464 00:25:02,920 --> 00:25:07,040 Speaker 2: to prevent this from happening. The report is detached and bureaucratic, 465 00:25:07,440 --> 00:25:09,800 Speaker 2: making you read between the lines quite a bit. It 466 00:25:10,000 --> 00:25:14,560 Speaker 2: passively identifies major vulnerabilities without naming them as failures, and 467 00:25:14,600 --> 00:25:18,400 Speaker 2: there were many failures. Through sounds like it. Let's take 468 00:25:18,400 --> 00:25:22,600 Speaker 2: the emails. While those interview told OIG investigators that quote 469 00:25:22,760 --> 00:25:27,040 Speaker 2: attention to detail regarding incoming email is crucial end quote. 470 00:25:27,640 --> 00:25:30,040 Speaker 2: I'm not so sure about that. I mean, the email 471 00:25:30,040 --> 00:25:31,760 Speaker 2: addresses are amazing. 472 00:25:31,880 --> 00:25:32,480 Speaker 3: What are they? 473 00:25:32,680 --> 00:25:38,320 Speaker 2: The email addresses are Office dot President at UKR dot 474 00:25:38,359 --> 00:25:46,879 Speaker 2: net dot net and airmac at Zolensky dot team. Have 475 00:25:47,000 --> 00:25:51,000 Speaker 2: you ever had those like phishing exercises to make sure 476 00:25:51,040 --> 00:25:54,359 Speaker 2: that you're not fish right? And they always like, you know, 477 00:25:54,440 --> 00:25:58,080 Speaker 2: check those check those domain names. So they're just getting 478 00:25:58,240 --> 00:26:01,680 Speaker 2: emails from what they think are the Ukrainian government or 479 00:26:01,800 --> 00:26:07,480 Speaker 2: Ukrainian government officials from dot team and at UKR dot net. 480 00:26:08,480 --> 00:26:12,800 Speaker 2: Official government email accounts generally don't reside on a dot 481 00:26:12,880 --> 00:26:15,240 Speaker 2: net or dot team domain. 482 00:26:16,280 --> 00:26:19,639 Speaker 3: Right, They reside on personal signal accounts, as we all know. 483 00:26:19,840 --> 00:26:23,840 Speaker 2: Right, But you see, the report doesn't even explicitly discuss 484 00:26:24,080 --> 00:26:28,160 Speaker 2: this email oversight. I just love this part of the report. 485 00:26:28,520 --> 00:26:32,720 Speaker 2: It says staff members are taking a closer look at senders, 486 00:26:32,920 --> 00:26:35,960 Speaker 2: email addresses and verifying contacts as necessary. 487 00:26:36,040 --> 00:26:37,479 Speaker 3: That tells me absolutely nothing. 488 00:26:37,600 --> 00:26:44,000 Speaker 2: That's that's already It says nothing, but it's also says everything, because, Hey, 489 00:26:44,359 --> 00:26:47,680 Speaker 2: the Board of Governors is saying the Federal Reserve Board 490 00:26:47,760 --> 00:26:50,919 Speaker 2: that they're going to start taking closer look at senders, 491 00:26:50,920 --> 00:26:54,640 Speaker 2: email addresses and verifying contacts is necessary. I'm assuming they 492 00:26:54,720 --> 00:26:57,840 Speaker 2: haven't been doing that previously, but clearly they were not 493 00:26:57,960 --> 00:26:59,040 Speaker 2: doing that previously. 494 00:26:59,160 --> 00:27:01,240 Speaker 3: So that's saying, like, we're going to start doing things 495 00:27:01,280 --> 00:27:03,960 Speaker 3: that have been recommended for the last thirty years in 496 00:27:04,040 --> 00:27:05,240 Speaker 3: dealing with the Internet. 497 00:27:05,600 --> 00:27:09,000 Speaker 2: Now, whose job was it to verify the contact? Investigators 498 00:27:09,080 --> 00:27:12,480 Speaker 2: learned that when the impersonator reached out to Powell's assistant, quote, 499 00:27:12,480 --> 00:27:15,560 Speaker 2: no single person or group was solely assigned to verify 500 00:27:15,600 --> 00:27:18,919 Speaker 2: the identity of foreign individuals who contact the board to 501 00:27:19,000 --> 00:27:22,919 Speaker 2: request to communicate with board members or officials. The reason 502 00:27:23,480 --> 00:27:28,480 Speaker 2: they don't usually have to. Powell has quote longstanding relationships 503 00:27:28,600 --> 00:27:32,400 Speaker 2: with his international counterparts, and one on one communications tend 504 00:27:32,400 --> 00:27:34,560 Speaker 2: to be with individuals well known to him. 505 00:27:34,800 --> 00:27:37,439 Speaker 3: Yeah, like, so, what why does this matter? This is 506 00:27:37,480 --> 00:27:40,960 Speaker 3: not about foreign contacts. This could have been anything, right, 507 00:27:41,359 --> 00:27:44,040 Speaker 3: This could have been Fox News is reaching out, or 508 00:27:44,080 --> 00:27:47,200 Speaker 3: this could have been like the head of some US bank. 509 00:27:47,280 --> 00:27:49,960 Speaker 3: This has zero to do with the fact that the 510 00:27:50,640 --> 00:27:53,320 Speaker 3: scammers were not based in the US or that they 511 00:27:53,640 --> 00:27:56,280 Speaker 3: pretended to be somebody not in the US. They're completely 512 00:27:56,320 --> 00:27:58,800 Speaker 3: missing what the issue is. I think, yeah, I mean, 513 00:27:58,800 --> 00:28:01,200 Speaker 3: they could have been fished by any right. Shouldn't the 514 00:28:01,280 --> 00:28:04,800 Speaker 3: question just have been, like, do they have procedures to 515 00:28:05,000 --> 00:28:07,399 Speaker 3: ensure that like they're not getting fished or they're not 516 00:28:07,440 --> 00:28:10,760 Speaker 3: getting scammed, or that they, you know, generally ensure that 517 00:28:10,880 --> 00:28:13,720 Speaker 3: a purported center is the real center, not specifically to 518 00:28:13,920 --> 00:28:17,119 Speaker 3: only when it's like foreign leaders of other countries. That 519 00:28:17,240 --> 00:28:19,679 Speaker 3: just seems like a way that they could dodge like 520 00:28:19,760 --> 00:28:21,800 Speaker 3: the real question and just be, oh, well, this like 521 00:28:21,880 --> 00:28:25,360 Speaker 3: super specific thing, like they you know, this hasn't come 522 00:28:25,440 --> 00:28:25,879 Speaker 3: up before. 523 00:28:26,840 --> 00:28:30,520 Speaker 2: Instead, FED staff relied on the exchange with the European 524 00:28:30,640 --> 00:28:33,480 Speaker 2: Central Bank at the bottom of the email thread as 525 00:28:33,680 --> 00:28:39,240 Speaker 2: verification enough that the request from the impostor was legit. Generally, 526 00:28:39,440 --> 00:28:43,080 Speaker 2: when foreign officials do reach out, FED staff are supposed 527 00:28:43,120 --> 00:28:46,640 Speaker 2: to contact the Treasury department, which the fed's International Finance 528 00:28:46,680 --> 00:28:50,240 Speaker 2: Division did do. No one raised any concerns, and quote 529 00:28:50,400 --> 00:28:53,960 Speaker 2: all felt comfortable with Chair Powell meeting the individual because 530 00:28:54,080 --> 00:28:57,320 Speaker 2: Le Guard at the European Central Bank recently had a 531 00:28:57,360 --> 00:29:00,920 Speaker 2: conversation with the same person. But that process doesn't involve 532 00:29:01,040 --> 00:29:05,440 Speaker 2: verifying the identity of the person asking to talk to Powell. 533 00:29:06,080 --> 00:29:08,320 Speaker 2: The FED also doesn't have a process to loop in 534 00:29:08,400 --> 00:29:12,280 Speaker 2: external agencies such as the embassy's, Department of State or 535 00:29:12,360 --> 00:29:15,800 Speaker 2: the White House to verify the identity of a request. 536 00:29:15,680 --> 00:29:16,760 Speaker 3: According to the records. 537 00:29:17,200 --> 00:29:19,640 Speaker 2: Yes, Matt, the entire show is about records. 538 00:29:20,080 --> 00:29:22,200 Speaker 3: I'm just making sure the listener is following. 539 00:29:22,800 --> 00:29:27,480 Speaker 2: Nor are internal security and intelligence departments regularly involved with 540 00:29:27,600 --> 00:29:31,160 Speaker 2: vetting communications between the FED and foreign officials. 541 00:29:31,600 --> 00:29:34,600 Speaker 3: This all feels like if you were making people like 542 00:29:34,760 --> 00:29:39,040 Speaker 3: do an online training about email security. This would be 543 00:29:39,200 --> 00:29:42,240 Speaker 3: like the one that's like obviously wrong when you see 544 00:29:42,240 --> 00:29:43,440 Speaker 3: what the other ones are right. 545 00:29:43,520 --> 00:29:47,440 Speaker 2: This is a federal reserve and it was stunning to 546 00:29:47,600 --> 00:29:53,800 Speaker 2: see how the security vulnerabilities reached all the way, you know, 547 00:29:54,000 --> 00:29:57,720 Speaker 2: right to Powell's store. So Chair Powell stated that International 548 00:29:57,760 --> 00:30:02,720 Speaker 2: Finance is responsible for ensuring that foreign officials requesting to 549 00:30:02,800 --> 00:30:08,239 Speaker 2: communicate are properly verified and vetted. Powell's throwing, you know, 550 00:30:08,280 --> 00:30:12,920 Speaker 2: the International Finance Division under the bus chair. Powell reiterated 551 00:30:13,120 --> 00:30:16,040 Speaker 2: that this one on one meeting with the Zelenski impersonator 552 00:30:16,240 --> 00:30:20,840 Speaker 2: was extremely unusual, given that nearly all of his communications 553 00:30:20,840 --> 00:30:24,000 Speaker 2: are with people he is already deeply familiar with. 554 00:30:24,480 --> 00:30:27,760 Speaker 3: So he's saying his communications are all people he's deeply 555 00:30:27,760 --> 00:30:31,240 Speaker 3: familiar I guess if he had any familiarity with Zelenski, 556 00:30:31,560 --> 00:30:35,840 Speaker 3: then he would have recognized it was obviously not Zolenski's. 557 00:30:35,240 --> 00:30:38,960 Speaker 2: Voice, right. But speaking of what Powell heard, let's get 558 00:30:38,960 --> 00:30:46,560 Speaker 2: into what happened on the video call itself after the break. Okay, 559 00:30:46,600 --> 00:30:49,200 Speaker 2: so Matt about the video. It's worth mentioning that the 560 00:30:49,240 --> 00:30:53,120 Speaker 2: report doesn't explicitly say what Powell was looking at, which 561 00:30:53,160 --> 00:30:57,440 Speaker 2: spares him some embarrassment. Vovan Alexis have been known to 562 00:30:57,560 --> 00:30:59,760 Speaker 2: u his deep fakes, but it's unclear if that's the 563 00:30:59,800 --> 00:31:03,440 Speaker 2: case in this instance. What Powell did recognize is that 564 00:31:03,720 --> 00:31:07,600 Speaker 2: Zelenski was surprisingly better at English than he expected and 565 00:31:07,640 --> 00:31:11,520 Speaker 2: appeared to be reading from a script. Investigators found that 566 00:31:11,640 --> 00:31:18,040 Speaker 2: the impersonator did not ask for any money, papers, documents, 567 00:31:18,120 --> 00:31:21,560 Speaker 2: or other things. Of value during the conversation. 568 00:31:21,160 --> 00:31:23,680 Speaker 3: Anit wait, wait, hold on a second, that is so 569 00:31:24,640 --> 00:31:26,360 Speaker 3: clearly wrong, right. 570 00:31:26,560 --> 00:31:29,720 Speaker 10: Yeah, I think I think that that's like it asked 571 00:31:29,720 --> 00:31:33,600 Speaker 10: for a printing press that it's not true, and basically 572 00:31:33,920 --> 00:31:38,040 Speaker 10: essentially said, can you build a bank, a federal reserve 573 00:31:38,120 --> 00:31:39,000 Speaker 10: bank in Ukraine? 574 00:31:39,360 --> 00:31:41,640 Speaker 2: But this is where it gets serious. There's a question 575 00:31:41,680 --> 00:31:45,640 Speaker 2: of whether or not Powell had disclosed potentially confidential Federal 576 00:31:45,800 --> 00:31:50,440 Speaker 2: Open Market Committee information to the Zelenski impersonator, particularly because 577 00:31:50,480 --> 00:31:53,960 Speaker 2: Powell talked about interest rates. This is what you asked 578 00:31:53,960 --> 00:31:57,160 Speaker 2: about earlier. The answer, it depends on who you ask. 579 00:31:57,760 --> 00:32:01,400 Speaker 2: One person interviewed said Powell's statement quote give at least 580 00:32:01,440 --> 00:32:05,880 Speaker 2: an appearance of looking like confidential information. But Powell disagreed. 581 00:32:06,280 --> 00:32:07,840 Speaker 2: So let's think about what he said. 582 00:32:08,040 --> 00:32:11,560 Speaker 6: The market is already pricing in two more quarter percentage 583 00:32:11,560 --> 00:32:13,120 Speaker 6: point rate hikes. 584 00:32:12,840 --> 00:32:16,200 Speaker 2: As far as the market expectation goes. That's true, but 585 00:32:16,280 --> 00:32:17,560 Speaker 2: it's what he says next. 586 00:32:17,800 --> 00:32:20,400 Speaker 6: We'll look around after we make those two and we'll say, 587 00:32:20,680 --> 00:32:22,080 Speaker 6: you know, should we do any more? 588 00:32:22,320 --> 00:32:24,960 Speaker 2: Powell told the IG he didn't think his comments quote 589 00:32:25,200 --> 00:32:28,640 Speaker 2: met the definition of confidential information because of the broad 590 00:32:28,720 --> 00:32:32,080 Speaker 2: market expectation that at least two interest rate increases were 591 00:32:32,120 --> 00:32:34,640 Speaker 2: going to occur, which the IG corroborated. 592 00:32:34,840 --> 00:32:37,760 Speaker 3: Now, does that mean that Powell had said that before 593 00:32:38,200 --> 00:32:40,959 Speaker 3: or that it's no big deal because everyone was already 594 00:32:40,960 --> 00:32:42,880 Speaker 3: assuming that to be the case, because it'll seem like 595 00:32:42,880 --> 00:32:43,840 Speaker 3: a little bit different to me. 596 00:32:44,080 --> 00:32:47,400 Speaker 2: Yeah, I mean it was essentially that there was an expectation, 597 00:32:47,720 --> 00:32:51,400 Speaker 2: based on the climate, that at least two rate increases 598 00:32:51,440 --> 00:32:52,400 Speaker 2: were going to happen. 599 00:32:52,480 --> 00:32:53,959 Speaker 3: All right, now, I'm going to tell you why this 600 00:32:54,040 --> 00:32:57,840 Speaker 3: pisses me off, because if you try to get anything 601 00:32:57,880 --> 00:33:00,840 Speaker 3: out of the FED under Foya, it has already been 602 00:33:00,840 --> 00:33:04,480 Speaker 3: publicly said, they will tell you to off. Like they're 603 00:33:04,600 --> 00:33:07,480 Speaker 3: not going to give you anything. They're gonna say that 604 00:33:07,600 --> 00:33:11,000 Speaker 3: anything that the chairs ever said can move markets, and 605 00:33:11,080 --> 00:33:13,520 Speaker 3: so like we're not gonna tell you what time that 606 00:33:13,640 --> 00:33:16,480 Speaker 3: meeting started or whether they served coffee. They will give 607 00:33:16,520 --> 00:33:19,880 Speaker 3: you nothing at all if you make a flayer request 608 00:33:20,080 --> 00:33:22,040 Speaker 3: on the theory that it will all these bad things 609 00:33:22,080 --> 00:33:24,720 Speaker 3: will happen. But if I'm hearing you right, Powell said 610 00:33:24,760 --> 00:33:27,880 Speaker 3: something to these impersonators that he had not publicly said before. 611 00:33:28,160 --> 00:33:30,000 Speaker 3: But they're saying it's not a big deal because it's 612 00:33:30,000 --> 00:33:32,520 Speaker 3: what everybody thought was gonna happen anyway. Do I have 613 00:33:32,560 --> 00:33:33,440 Speaker 3: that just about right? 614 00:33:33,800 --> 00:33:36,120 Speaker 2: Yeah, that's pretty much about right. You could say that 615 00:33:36,120 --> 00:33:39,320 Speaker 2: he's confirming the market's expectation, and at this time, the 616 00:33:39,360 --> 00:33:42,760 Speaker 2: Federal Reserve had not publicly announced a commitment to implement 617 00:33:43,160 --> 00:33:47,280 Speaker 2: two additional quarter percentage point interest rate hikes. But the 618 00:33:47,320 --> 00:33:51,120 Speaker 2: IG didn't take issue with this specific statement, probably because 619 00:33:51,360 --> 00:33:54,000 Speaker 2: even though Powell's comments gave the appearance that he might 620 00:33:54,080 --> 00:33:59,080 Speaker 2: have disclose confidential information, the chair has quote the authority 621 00:33:59,240 --> 00:34:05,320 Speaker 2: to upclass or down classify FLMC information at any time. So, 622 00:34:05,920 --> 00:34:10,040 Speaker 2: in other words, even though he may have disclosed non 623 00:34:10,080 --> 00:34:14,040 Speaker 2: public info, he's got the authority to classify it or 624 00:34:14,800 --> 00:34:17,560 Speaker 2: reveal it if he wants to. He has that unilateral 625 00:34:17,960 --> 00:34:18,920 Speaker 2: authority to do that. 626 00:34:19,239 --> 00:34:21,960 Speaker 3: I can think of at least one powerful government official 627 00:34:22,000 --> 00:34:24,560 Speaker 3: who would very much subscribe to the view that he 628 00:34:24,600 --> 00:34:27,000 Speaker 3: could say and do whatever he wants with any documents, 629 00:34:27,080 --> 00:34:29,480 Speaker 3: because he is the authority to do the same thing. 630 00:34:30,840 --> 00:34:33,600 Speaker 2: While the meeting was preceded by quote a rare set 631 00:34:33,600 --> 00:34:37,120 Speaker 2: of factors end quote, including Powell taking the call from 632 00:34:37,120 --> 00:34:40,360 Speaker 2: his home due to illness, the IG concluded that nothing 633 00:34:40,480 --> 00:34:41,840 Speaker 2: illegal took place. 634 00:34:42,160 --> 00:34:45,120 Speaker 3: I'm going to say this too about inspectors general, and 635 00:34:45,280 --> 00:34:47,680 Speaker 3: I mean no offense to any inspectors general, but the 636 00:34:47,719 --> 00:34:50,319 Speaker 3: incentives would seem to be such that you want to 637 00:34:50,360 --> 00:34:53,439 Speaker 3: show that you like found something wrong, but you also 638 00:34:53,520 --> 00:34:56,040 Speaker 3: don't want to blow up the whole federal government. It's 639 00:34:56,080 --> 00:34:58,960 Speaker 3: such an odd office. It's like part of the federal government, 640 00:34:59,040 --> 00:35:00,880 Speaker 3: but it's supposed to like ca all out wrongdoing by 641 00:35:00,880 --> 00:35:03,200 Speaker 3: the federal government. But I'm sort of skeptical how much 642 00:35:03,239 --> 00:35:05,480 Speaker 3: it wants to like really really take that on. I 643 00:35:05,480 --> 00:35:06,600 Speaker 3: don't know what do you think, Jason. 644 00:35:06,840 --> 00:35:11,040 Speaker 2: They will reach conclusions, they will make a referral or 645 00:35:11,520 --> 00:35:15,319 Speaker 2: recommend an action. Right in this case, you know what 646 00:35:15,400 --> 00:35:18,680 Speaker 2: they said was they found no violations of law, regulation, 647 00:35:18,840 --> 00:35:21,680 Speaker 2: or policy associated with this matter. 648 00:35:21,840 --> 00:35:22,000 Speaker 5: Right. 649 00:35:22,440 --> 00:35:24,760 Speaker 2: The bottom line is this, They're not going to say, 650 00:35:25,080 --> 00:35:27,920 Speaker 2: you guys are a bunch of idiots. Get your together. 651 00:35:28,600 --> 00:35:31,799 Speaker 3: I'm not saying that they should be going out of 652 00:35:31,800 --> 00:35:36,200 Speaker 3: their way to like publicly humiliate anybody or grandstand or 653 00:35:36,239 --> 00:35:38,479 Speaker 3: get about a soapbox. But I think that there can 654 00:35:38,600 --> 00:35:41,680 Speaker 3: be a tendency, or at least the effect of burying 655 00:35:41,800 --> 00:35:45,240 Speaker 3: the reality of it in a bunch of bureaucratic sounding 656 00:35:45,400 --> 00:35:48,880 Speaker 3: stuff that really kind of takes away from the public 657 00:35:49,239 --> 00:35:52,920 Speaker 3: really understanding and appreciating the full ramifications of what happened. 658 00:35:53,040 --> 00:35:55,520 Speaker 2: That's why I'm here, Matt, so I can help them 659 00:35:55,560 --> 00:35:56,800 Speaker 2: appreciate what happened. 660 00:35:56,880 --> 00:35:59,440 Speaker 3: I always forget it, but thank you for reminding me. 661 00:35:59,800 --> 00:36:03,279 Speaker 3: If if we had excellent government in America, you and 662 00:36:03,280 --> 00:36:04,920 Speaker 3: I would both have to find other jobs. 663 00:36:05,160 --> 00:36:07,240 Speaker 2: Right. I don't know what else I would do except 664 00:36:07,400 --> 00:36:08,560 Speaker 2: slang records. 665 00:36:10,239 --> 00:36:12,719 Speaker 3: You could live up your T shirt collection for like, yeah, 666 00:36:12,760 --> 00:36:14,040 Speaker 3: easily three or four years. 667 00:36:14,280 --> 00:36:17,000 Speaker 2: Have to sell some charts. So how could this have 668 00:36:17,080 --> 00:36:21,319 Speaker 2: been prevented? Powell says the simple fix would entail an 669 00:36:21,360 --> 00:36:25,920 Speaker 2: individual from the board calling the relevant embassy to verify 670 00:36:26,000 --> 00:36:30,040 Speaker 2: the contact. I mean the way that it's written. You 671 00:36:30,040 --> 00:36:32,319 Speaker 2: know you're reading it. It's so dry. But just think 672 00:36:32,320 --> 00:36:35,200 Speaker 2: of that. Powell's like, I know how we can resolve 673 00:36:35,239 --> 00:36:38,080 Speaker 2: this in the future. Just call the embassy to see 674 00:36:38,080 --> 00:36:42,400 Speaker 2: if that person actually sent the email. Now we have 675 00:36:42,480 --> 00:36:45,640 Speaker 2: to give credit where credit is due, because someone did 676 00:36:45,760 --> 00:36:49,560 Speaker 2: call the Ukrainian embassy, just not Powell staff that someone 677 00:36:49,680 --> 00:36:52,880 Speaker 2: was in the Treasury Department and when they called quickly 678 00:36:53,160 --> 00:36:56,720 Speaker 2: they had their answer. Presidence Lensky never requested a meeting 679 00:36:57,120 --> 00:37:00,160 Speaker 2: but that didn't happen until February eighth, two thousand, in 680 00:37:00,239 --> 00:37:03,359 Speaker 2: twenty three. By then it was too late. The joke 681 00:37:03,480 --> 00:37:06,239 Speaker 2: was on the FED. So there's your answer, Matt. What 682 00:37:06,360 --> 00:37:09,200 Speaker 2: spook Pal's assistant? None other than a little bit of 683 00:37:09,280 --> 00:37:12,920 Speaker 2: due diligence that should have been done well before the meeting. 684 00:37:12,719 --> 00:37:14,880 Speaker 3: But they wait, They didn't do it until they reached 685 00:37:14,880 --> 00:37:19,520 Speaker 3: out after after We reached out to the Federal Reserve 686 00:37:19,600 --> 00:37:22,600 Speaker 3: for comment about this episode, but as of this recording, 687 00:37:22,800 --> 00:37:25,719 Speaker 3: the agency has not responded. So what's your take on 688 00:37:25,760 --> 00:37:26,080 Speaker 3: all this? 689 00:37:26,440 --> 00:37:29,480 Speaker 2: The meeting revealed a break down an operational security and 690 00:37:29,560 --> 00:37:33,120 Speaker 2: a need to overhaul security protocols across the board, but 691 00:37:33,200 --> 00:37:36,800 Speaker 2: the IG makes no recommendations, and that makes me question 692 00:37:36,880 --> 00:37:40,440 Speaker 2: if the scope of the investigation was too narrowly defined 693 00:37:40,440 --> 00:37:44,799 Speaker 2: by did anyone violate existing rules? The report does say 694 00:37:44,800 --> 00:37:47,920 Speaker 2: that other internal agencies were also looking into this, but 695 00:37:48,040 --> 00:37:50,960 Speaker 2: records responsive to that weren't in this batch of records 696 00:37:51,040 --> 00:37:54,360 Speaker 2: or released to me more than a year after the incident. 697 00:37:55,320 --> 00:37:57,880 Speaker 2: This report is not instill a lot of confidence in 698 00:37:57,920 --> 00:38:01,080 Speaker 2: the public that the FED took serious that it lacked 699 00:38:01,560 --> 00:38:06,560 Speaker 2: elementary safeguards to prevent a massive breach by a foreign 700 00:38:06,640 --> 00:38:09,920 Speaker 2: actor that could have had national security consequences. 701 00:38:10,120 --> 00:38:11,919 Speaker 3: This is the kind of thing that drives people nuts 702 00:38:11,960 --> 00:38:14,640 Speaker 3: about the federal government. Like you made a mistake. Just 703 00:38:14,840 --> 00:38:18,000 Speaker 3: admit I made a mistake. I get it. This is 704 00:38:18,000 --> 00:38:21,439 Speaker 3: what I'm gonna do different next time. But not sort 705 00:38:21,440 --> 00:38:23,719 Speaker 3: of like, oh well, other people screwed up too. We're 706 00:38:23,719 --> 00:38:25,640 Speaker 3: like here's my excuse, or like this isn't really that 707 00:38:25,680 --> 00:38:27,680 Speaker 3: big of a deal. Just own it for like five 708 00:38:27,719 --> 00:38:30,080 Speaker 3: seconds and then we can all move on. Like people 709 00:38:30,200 --> 00:38:32,239 Speaker 3: smart enough to see through that and it makes them 710 00:38:32,280 --> 00:38:32,839 Speaker 3: really mad. 711 00:38:32,960 --> 00:38:33,520 Speaker 2: I agree. 712 00:38:34,040 --> 00:38:37,000 Speaker 3: Is this inspector general one of the inspector generals who's 713 00:38:37,120 --> 00:38:38,000 Speaker 3: since been fired? 714 00:38:38,160 --> 00:38:39,360 Speaker 2: Nope, he wasn't touched. 715 00:38:39,840 --> 00:38:41,759 Speaker 3: So that was hoping. Maybe we could we could get 716 00:38:41,760 --> 00:38:45,200 Speaker 3: the on the pod talk about it. But right, maybe 717 00:38:45,200 --> 00:38:48,680 Speaker 3: we could, maybe we can get Chairman Powell on the pod. 718 00:38:49,080 --> 00:38:51,120 Speaker 3: Would you like to come on and discuss this report? 719 00:38:51,160 --> 00:38:53,440 Speaker 3: We are who we say we are. Oh that's good. 720 00:38:54,200 --> 00:38:57,000 Speaker 2: So that's it for this one, but not for Powell 721 00:38:57,000 --> 00:38:59,920 Speaker 2: and me in a sense. We end where we be. 722 00:39:00,040 --> 00:39:00,279 Speaker 5: Yeah. 723 00:39:01,920 --> 00:39:05,520 Speaker 1: On April morning in twenty twenty five, Jason Leopold was 724 00:39:05,560 --> 00:39:06,479 Speaker 1: sitting up in bed. 725 00:39:06,719 --> 00:39:08,960 Speaker 2: Have n't brushed my teeth. I'm still there. 726 00:39:09,239 --> 00:39:13,040 Speaker 1: Scrolling the headlines when a story caught his eye. 727 00:39:13,239 --> 00:39:15,520 Speaker 2: And I was like, oh, that's funny. I gotta follow 728 00:39:15,520 --> 00:39:18,200 Speaker 2: a foyer. So I followed a request with the Federal 729 00:39:18,239 --> 00:39:22,680 Speaker 2: Reserve for all adacted because it's classified. 730 00:39:22,840 --> 00:39:25,239 Speaker 3: Ooh, I can hardly wait for the records to come back. 731 00:39:25,320 --> 00:39:28,560 Speaker 2: Jason, Well, Matt, I'll let you know what the records say. 732 00:39:28,760 --> 00:39:34,279 Speaker 2: And a few years from Bloomberg and No Smiling, this 733 00:39:34,440 --> 00:39:37,480 Speaker 2: is Disclosure. The show is hosted by Matt Topic and 734 00:39:37,520 --> 00:39:41,640 Speaker 2: me Jason Leopold. It's produced by Heather Schroing and Sean 735 00:39:41,719 --> 00:39:45,320 Speaker 2: Cannon for No Smiling. Our editor for Bloomberg is Jeff Grocott. 736 00:39:45,680 --> 00:39:49,360 Speaker 2: Our executive producers for Bloomberg are Sage Bauman and me 737 00:39:49,719 --> 00:39:53,680 Speaker 2: Jason Leopold, and our executive producers for No Smiling are 738 00:39:53,760 --> 00:39:58,240 Speaker 2: Sean Cannon, Heather Schrowing, and Matt Topic. The Disclosure theme 739 00:39:58,320 --> 00:40:02,040 Speaker 2: song is by Nick, with additional music by Nick and 740 00:40:02,200 --> 00:40:06,200 Speaker 2: Epidemic Sound. Sound design and mixing is by Sean Cannon. 741 00:40:06,680 --> 00:40:09,880 Speaker 2: The emails in this episode were read by Josh Gondelman, 742 00:40:10,280 --> 00:40:14,719 Speaker 2: Katherine Blandford, and Adam Gilbert. For more Transparency News and 743 00:40:14,800 --> 00:40:18,600 Speaker 2: important document Thumps. You can subscribe to my Weeklyfoya Files 744 00:40:18,640 --> 00:40:24,560 Speaker 2: newsletter at Bloomberg dot com slash Foya Files. That's Foia Files. 745 00:40:25,280 --> 00:40:28,480 Speaker 2: To get every episode early on Apple podcasts. Become a 746 00:40:28,520 --> 00:40:32,279 Speaker 2: Bloomberg dot com subscriber today. Check out our special intro 747 00:40:32,400 --> 00:40:36,120 Speaker 2: offer right now at bloomberg dot com Slash podcast offer, 748 00:40:36,400 --> 00:40:38,680 Speaker 2: or click the link in the show notes. You'll also 749 00:40:38,760 --> 00:40:43,120 Speaker 2: unlock deep reporting data and analysis from reporters around the world. 750 00:40:43,560 --> 00:40:48,680 Speaker 2: We'll see you again next Tuesday. 751 00:40:49,840 --> 00:40:51,879 Speaker 3: Did the Russian pranksters know how to foy you?