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Mon Sep 27, 2021, 11:45 PM

Dallas Fed President Robert Kaplan Resigns Amid Scrutiny Over Trading -- Hours After Boston Colleague

Source: Forbes

The presidents of the Dallas and Boston branches of the Federal Reserve Bank, Robert Kaplan and Eric Rosengren, respectively, announced their retirements hours apart on Monday, weeks after they said they would sell their individual stock holdings after questions were raised about their trading activity from last year.

Rosengren made the announcement in the morning, citing health issues, while Kaplan released a statement several hours later saying the “recent focus” on his financial disclosure risked “becoming a distraction” for the institution.

Kaplan served as president and CEO of the Dallas branch for six years; Rosengren had been with the Boston Fed for 35 years, including 14 years as president, and was originally set to step down in June 2022 when he reached the mandatory retirement age of 65.

Read more: https://www.forbes.com/sites/teakvetenadze/2021/09/27/dallas-fed-president-robert-kaplan-resigns-amid-scrutiny-over-trading---hours-after-boston-colleague-steps-down/



Don't know that there's any significance to this. Just two people monetizing their "service" to the country a bit too early?

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Reply Dallas Fed President Robert Kaplan Resigns Amid Scrutiny Over Trading -- Hours After Boston Colleague (Original post)
cadoman Sep 27 OP
Roy Rolling Sep 28 #1
stopdiggin Sep 28 #2
oioioi Sep 28 #3
Lonestarblue Sep 28 #4
cadoman Sep 28 #9
ashredux Sep 28 #5
bucolic_frolic Sep 28 #6
mahatmakanejeeves Sep 28 #7
Karma13612 Sep 28 #8
Farmer-Rick Sep 29 #10

Response to cadoman (Original post)

Tue Sep 28, 2021, 12:17 AM

1. Significance?

Maybe none, but an equal chance it exposes a practice that undermines the financial markets. Since the Great Recession of 2007-2009, the Federal Reserve has pumped trillions into the economy via buybacks and “quantitative easing”.

Federal Reserve executives (and any politician) benefited greatly from the actions of the Fed, and these people were the ones front running the Fed policy announcements to cash-in.

The monthly reports are a key financial indicator watched by money managers everywhere, if the corruption is deep it may have an impact, but if it’s just rogue players, not so much.

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Response to cadoman (Original post)

Tue Sep 28, 2021, 12:50 AM

2. I think a key factor in evaluation here

would be similarities (and disparities) of financial positions, moves and behavior - between these and other sitting members. Are there actions and behavior here that are truly outre'? Or is this all pretty run of the mill stuff? In which case - I'm not quite sure that I'm convinced of the necessity for a 'Caesar's wife' brand of purity here.

(a moment while I don mouthpiece and headgear ... okay, now proceed ...)
----- -----

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Response to cadoman (Original post)

Tue Sep 28, 2021, 01:34 AM

3. Why aren't they obliged to put financial assets into a blind trust?

Martha Stewart sold 4,000 shares in ImClone stock the day before the FDA announced they had rejected the company's new drug — and managed to save herself a cool $45,000. But things like this don't go unnoticed, and Stewart quickly came under investigation by the U.S. Government.

Stewart was charged with securities fraud, obstruction of justice, and conspiracy, and the case went to trial in early 2004. Stewart was sentenced to five months in prison, five months of house arrest, and two years probation.

Read More: https://www.mashed.com/240834/the-truth-about-martha-stewarts-time-in-prison/?utm_campaign=clip

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Response to cadoman (Original post)

Tue Sep 28, 2021, 02:04 AM

4. It may have no connection at all, but I wonder if Trump's corruption led others to follow.

Trump got away with at least shady dealings and most likely true white collar crimes his whole life. When people see someone like that operating with no consequences, perhaps they decide it’s fine to get on the gravy train too. Trump has been a pernicious influence in many ways, and white collar crime by more people may be one of them.

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Response to Lonestarblue (Reply #4)

Tue Sep 28, 2021, 07:14 PM

9. this would be the best case scenario -- a sign of house cleaning [nt]

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Response to cadoman (Original post)

Tue Sep 28, 2021, 06:25 AM

5. The Fed's decisions DIRECTLY affect the markets and can influence certain sectors....

It would be great to know ahead of time their movements….

The Trump Rot is strong…

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Response to cadoman (Original post)

Tue Sep 28, 2021, 06:36 AM

6. Hope Martha Stewart is on the jury

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Response to cadoman (Original post)

Tue Sep 28, 2021, 07:39 AM

7. Two Fed officials announce retirements amid controversy over ethics and stocktrading

Economic Policy

Two Fed officials announce retirements amid controversy over ethics and stocktrading

Boston Fed President Eric Rosengren and Dallas Fed President Robert Kaplan both announced their departures on Monday

By Rachel Siegel
Yesterday at 4:22 p.m. EDT

Two top Fed officials are leaving their posts amid scrutiny over their stocktrading activities during the covid crisis, behavior which spurred an unusual review by the Federal Reserve of trading rules for its officials.

Boston Federal Reserve Bank President Eric Rosengren and Dallas Fed President Robert Kaplan both announced their retirements on Monday. Earlier this month, the Wall Street Journal, Bloomberg News and other outlets reported on the financial disclosures of the regional bank presidents, showing that both actively traded in stocks and other investments while in their roles setting monetary policy and assisting the central bank through the covid crisis.

“Unfortunately, the recent focus on my financial disclosure risks becoming a distraction to the Federal Reserve’s execution of that vital work. For that reason, I have decided to retire,” Kaplan said in a statement Monday afternoon.

{snip}

By Rachel Siegel
Rachel Siegel is an economics reporter covering the Federal Reserve. She previously covered breaking news for the Post's financial section and local politics for the Post's Metro desk. Before joining the Post in June 2017, Rachel contributed to The Marshall Project and The Dallas Morning News. Twitter https://twitter.com/rachsieg

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Response to cadoman (Original post)

Tue Sep 28, 2021, 09:28 AM

8. SOS DD



More stuff to investigate with ultimately no outcome.

So few people go to jail for the big stuff.

The world watches, and America never gets closure. On anything anymore.

Well, that’s not exactly true. We get ‘closure’ of doors that potentially could lead to wonderful much needed progress and relief from stagnant conservative policies.

Nope, nothing to see here…..

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Response to cadoman (Original post)

Wed Sep 29, 2021, 11:45 AM

10. Just more corruption of our government

This kind of scimming of wealth using insider information thanks to an exclusive government position seems like a minor thing when you consider all the other corruption throughout the rest of the government.

Plots to murder, coups, blatant bribery and systemic racism, just a few of the horrors of corruption already identified.

This is all about the filthy rich turning our government into their private little piggy bank. Nothing to see here, just how capitalism works.

This is how bussiness runs. To think some worry about corrupting markets. Aren't markets already corrupted what with bailouts, tax cuts and handouts to the filthy rich? Capitalism always corrupts markets. It's the only way to get ahead of the next guy. Marx identity this decades ago.

We deserve better.


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