Clean hands operation in the US central banking system. The presidents of two regional central banks – those of Boston (Massachusetts) and Dallas (Texas) – both announced their early departure, Monday, September 27, for investing in the financial markets in 2020, a year of incredible financial yoyo. Robert Kaplan, chairman of the Dallas Fed, announced that his resignation would be effective October 8. It turned out that the 64-year-old former Goldman Sachs had traded for cumulative amounts of several million dollars. According to his declaration of interests, he owns a portfolio of varied assets, of which twenty-seven lines have an individual value of more than $ 1 million (shares of Apple, Alibaba, General Electric, Chevron, Occidental Petroleum … and a few funds of investments).
“The Federal Reserve is approaching a critical moment for our economic recovery as it reflects on the future direction of its monetary policy. Unfortunately, the recent attention to my declarations of financial interests may disrupt this vital work of the Federal Reserve.Kaplan said in a statement. For this reason, I have decided to retire as chairman of the Federal Reserve Bank of Dallas. ” Mr. Kaplan worked for 23 years at Goldman Sachs, until 2006, before becoming a professor at Harvard, where he had studied, then boss of the Dallas Fed in 2015.
Boston Fed boss Eric Rosengren, 64, was less direct, as he explained that he was withdrawing for health reasons – he is a candidate for a kidney transplant – early, starting September 30 rather than ‘in June 2022 when the 65-year-old age limit is reached. At the beginning of September, this man who completed his thirty-five years of career at the Boston Fed had decided – like Mr. Kaplan – to liquidate his portfolio, after revealing transactions less than or equal to 50,000 dollars (42,750 euros) each, but which concerned the real estate sector, also carried on a drip by the Fed: “Although my personal savings and investment transactions comply with the Federal Reserve’s ethical guidelines, I have decided to deal with even the appearance of any conflict of interest by deciding to sell my securities and dispose of them. invest passively “, he had declared.
The Fed has twelve regional banks. With the seven members of the executive board of the Washington Fed, the president of the New York institution has permanent voting rights on the monetary policy council, which sets Fed policy, while the other eleven regional banks do not vote. that by rotation, only four positions being assigned to them. However, they participate actively in the debates. Boston Fed Chairman Rosengren did not vote in 2020 but had an important role in bailout plans for the economy and was due to return to the Fed’s Monetary Policy Committee (FOMC) in 2022 Dallas Fed leader Kaplan voted in 2020 and was due to return to the FOMC in 2023.
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