WASHINGTON -- House Banking Committee Chairman Henry Gonzalez, D-Tex., yesterday urged the Securities and Exchange Commission to investigate allegations that former Federal Reserve governor Wayne Angell profited from inside knowledge when he went to work for Bear, Stearns & Co. Angell, who resigned from the Fed in February, told Bear Stearns clients in an April conference call that he believed most Fed district banks had requests pending to raise the discount rate. The Fed subsequently raised the discount rate to 3.50% from 3% on May 17.

An SEC spokesman, following standard practice, declined to confirm whether the agency is investigating the incident. However, Gonzalez revealed yesterday that the Fed's internal report on the matter by the office of inspector general was forwarded to the SEC.

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