Nov 17 (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.
The search for the bank is being led by its non-bank directors, it said in a statement on Tuesday, who hired executive search firm Egon Zander to assist in the recruitment of 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 the types of individual-stock trading conducted by Kaplan and allow policymakers to limit the types of holdings and 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)