>>14673739 (pb)

>BREAKING: Dallas Fed President Kaplan just announced he is resigning October 8

The Dallas Fed President/CEO and the Boston Fed President Eric Rosengren, both made millions inside trading as they were voting on policy and making a lot of money based on their policies.

Excerpt from The Dallas Morning News:

"“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. “For that reason, I have decided to retire as President and CEO of the Federal Reserve Bank of Dallas.

His retirement after six years at the helm will be effective Oct. 8 with First Vice President Meredith Black delaying her impending retirement to serve as interim president during the transition.

The announcement came hours after Boston Fed President Eric Rosengren said he was retiring early because he qualified for a kidney transplant. He originally planned to retire in June 2022 when he hit 65, the mandatory retirement age for bank presidents.

Both Fed officials had their 2020 financial stock-trading activities publicized in an article in The Wall Street Journal in September. After questions about the ethics of the trades, both Fed presidents announced they would sell all their individual stock holdings by Sept. 30.

At the time, Kaplan released a statement saying he would change his personal investment practices “to avoid even the appearance of any conflict of interest.” He also said there would be no further trading in those accounts while he was the head of the Dallas Fed. Kaplan and the other Fed President to retire under the same circumstances Eric Rosengren, Boston Fed, both insist they did everything "by the book" of course. Nothing to see here, moving along.

Since then, the Fed has launched a review of its trading rules for officials.

Kaplan and Rosengren both maintain they adhered to all of the Fed’s ethical standards and policies. When Kaplan joined the bank, he sold all of his personal holdings related to financial institutions that the Fed had regulatory oversight over, the Dallas Fed noted in the retirement announcement.

Kaplan’s financial transactions, showing millions of dollars in trades in 2020, stood out from the other Fed presidents’ financial profiles, which were more modest. Kaplan had 27 stock, fund or alternative asset holdings valued at over $1 million each, including Apple, Alibaba, Amazon, Facebook, Google and Tesla. He also had 22 buying or selling transactions valued at over $1 million each.

Rosengren’s financial disclosures showed stakes in four separate real estate investment trusts and disclosed multiple purchases and sales in those and other securities last year."

Sauce: https://www.dallasnews.com/business/banking/2021/09/27/rob-kaplan-to-retire-as-dallas-fed-president-after-controversy-over-financial-disclosures/