Two former senior Federal Reserve officials were cleared of legal wrongdoing in an investigation into their trading of private securities during 2020, according to a report by the US central bank’s internal regulator.
Robert Kaplan and Eric Rosengren, former presidents of the Fed’s Dallas and Boston branches, respectively, both traded in a way that could create an “appearance of a conflict of interest” that could cause a reasonable person to question” their “impartiality” under their respective institutions’ codes of conduct, the Office of Inspector General said in a report released Monday.
Kaplan was not found to have “violated laws, rules, regulations or policies related to trading activities”, the report said.
Rosengren did not report “multiple trades” on his 2020 disclosures, the investigation said, adding that they also “found multiple discrepancies between the transactions reflected in his brokerage statements and trading data and what he reported”.