Dallas Fed begins search for new president, hires search firm

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FILE PHOTO: Dallas Federal Reserve Bank President Robert Kaplan speaks during an interview in his office at the bank’s headquarters in Dallas, Texas, US, January 9, 2020. Businesshala / En Safir / File photo
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(corrects the day the statement was issued Wednesday, Tuesday)

(Businesshala) – The Federal Reserve Bank of Dallas has begun searching for a new chairman to replace the bank’s previous top executive, Robert Kaplan, who left last month following a scandal over his personal financial dealings.

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The bank is being searched by its non-bank directors, it said in a statement on Wednesday, who have hired executive search firm Egon Zander to assist them in recruiting potential candidates.

Kaplan and former Boston Fed Chairman Eric Rosengren drew criticism in September after revelations that they had conducted extensive personal trading in 2020 during the height of the pandemic crisis and the Fed’s efforts to stabilize markets and save the economy.

Both said their businesses were in line with the Fed’s ethics guidelines at the time, agreeing to divest their stock holdings and eventually relinquishing their positions. Kaplan retired on October 8.

Since his departure, the Fed has rewritten its rules to restrict individual-stock trading conducted by Kaplan and allow policymakers to limit holdings and types of transactions.

The scandal has proved to be a headache for Fed Chairman Jerome Powell, who is under consideration for nomination for a second four-year term.

Reporting by Ann Safir; Editing by Dan Burns and Chizu Nomiyama;

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