Dallas FED President Robert Kaplan announced his sudden retirement Monday citing distractions from what one insider called insider trading.
Kaplan’s early retirement comes shortly after an announcement by Boston Fed President Eric Rosengren. He noted health concerns in his resignation and not issues over his stock choices.
“The Federal Reserve is approaching a critical point in our economic recovery as it deliberates the future path of monetary policy. Unfortunately, the recent focus on my financial disclosure risks becoming a distraction to the Federal Reserve’s execution of that vital work,” Kaplan said in a statement.
Dallas FED President
Kaplan has executed several large stock trades in household names such as Amazon, Apple, and Delta Air Lines. This occurred at the same time the Fed was pouring trillions of dollars into asset purchases aimed at helping the markets function. Additionally, the Fed has bought corporate bonds from mega-cap companies like Apple enriching his personal portfolio at the same time.
Congress is holding oversight hearings starting today over the Fed’s response to COVID19, but it is unclear a criminal investigation will follow.
In August, William Mundinger, formerly of Goldman Sachs took over the city’s Department of Sustainable Development and Construction, prompting questions of insider control over the City of Dallas.
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