Dallas Fed begins search for new president, hires search firm
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[November 18, 2021] By
Ann Saphir
(Reuters) - The Federal Reserve Bank of
Dallas has kicked off a search for a new president to replace Robert
Kaplan, the bank's previous top executive who left last month after a
scandal over his personal financial transactions.
The bank's search is being led by its non-bank directors, it said in a
statement on Wednesday. The bank hired the executive search firm Egon
Zehnder to assist in recruiting candidates.
Kaplan and former Boston Fed President Eric Rosengren drew criticism in
September after revelations that they had made extensive personal trades
in 2020 during the height of the pandemic crisis and the Fed's efforts
to stabilize markets and rescue the economy.
Both said their trades were in line with the Fed's ethics guidelines at
the time and agreed to divest their stock holdings. But the furor did
not subside and ultimately both left their posts. Kaplan retired Oct. 8.
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![](../images/111821PIX/busine50.jpg)
Dallas Federal Reserve Bank President Robert Kaplan speaks during an
interview in his office at the bank's headquarters in Dallas, Texas,
U.S. January 9, 2020. REUTERS/ Ann Saphir/File Photo
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The scandal has been a headache for Fed Chair Jerome Powell, who is under
consideration for a second four-year term. To deal with the fallout, Powell
launched a review of the Fed's trading rules. That resulted in a rewrite of
guidelines that now bar the kind of individual-stock trading that Kaplan
undertook. The new rules limit the types of holdings and transactions permitted
for policymakers.
The Dallas Fed's job description includes a requirement for "unwavering ethics,
character, and integrity."
The bank did not provide a timeline for its search, but similar efforts at other
banks and at the Dallas Fed itself have typically taken six to 12 months. The
Dallas Fed chief rotates into a voting spot on the Fed's policymaking panel in
2023.
(Reporting by Ann Saphir; Editing by Dan Burns, Chizu Nomiyama and Cynthia
Osterman)
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