Robert Kaplan in Jackson Hole, Wyoming
David A. Grogan | CNBC
Federal Reserve regional presidents Robert Kaplan and Eric Rosengren said Thursday they will sell individual shares amid ethical concerns about the 2020 deal.
Fed officials will sell all their shares on Sept. 30 and put the proceeds into passive investments, they said in statements released Thursday.
“While my personal savings and investment transactions comply with Federal Reserve ethical standards, I have decided to address even the occurrence of any conflict of interest by taking the following steps,” said Rosengren, president of the Federal Reserve. Boston Fed.
The two officials also pledged not to negotiate the shares that will serve as Fed presidents.
The announcements come after Fed officials faced scrutiny over investment activity in a year in which central bank shares boosted financial markets during the Covid pandemic.
A financial disclosure form from Dallas Fed Chairman Kaplan raised his eyebrows this week revealing a series of millionaire transactions in individual shares last year, including Apple, Amazon and Delta Airlines. Kaplan owned a total of 32 individual holdings, funds or alternative assets, with 27 of these valued at more than $ 1 million at the end of 2020, according to the report.
The form was first reported by The Wall Street Journal.
Rosengren and Kaplan are presidents of two of the 12 regional banks in the Fed that cover the country. The presidents of regional banks are again part of the Federal Open Market Committee that sets the rate policy.
This is breaking news. Please check for updates again.