Goldman Sachs names former Dallas Fed chief Kaplan as vice chairman

11:01 am Tuesday, May 07th, 2024

By Saeed Azhar

NEW YORK (Reuters) -Goldman Sachs said on Tuesday it had appointed Robert Kaplan, the former president of the Federal Reserve Bank of Dallas, as its vice chairman, adding an influential former policymaker and Goldman alumni to its management committee.

Kaplan will give strategic advice to the Wall Street giant’s clients globally, working closely with its teams across global banking and markets, and asset and wealth management, the bank said in a statement.

Kaplan, who had earlier spent more than two decades at Goldman Sachs, “brings a wealth of knowledge, deep relationships and significant global leadership expertise to his role as vice chairman,” Goldman CEO David Solomon said in a statement.

Kaplan, 66, will be based in Dallas. He announced in September 2021 that he would step down as head of the Dallas Fed amid a controversy over his personal trading activity. Kaplan has said he adhered to all Fed ethical standards, compliance rules and policies.

In January, the Fed’s internal watchdog said Kaplan did not break the law but created the appearance of a conflict of interest in how he invested and reported his financial activity from 2019 to 2021.

Goldman Sachs last year brought back into the fold senior banking executive Tom Montag, adding him to its board as it looked to regain lost ground after an ill-fated foray into consumer banking.

The bank is replenishing its bench of heavy-hitters after recent high-profile departures including Stephanie Cohen, who had headed its consumer and fintech unit, Jim Esposito, co-head of global banking and markets, and former asset management executive Julian Salisbury.

Kaplan said in a statement he looked forward to working with the “extraordinary array of talented people” across the firm to serve its clients and help enhance and sustain its unique culture.

Kaplan initially joined Goldman Sachs in 1983 and became a partner in 1990. He retired from the firm in 2006 to join Harvard Business School and later served as president and CEO of the Federal Reserve Bank of Dallas from 2015 to 2021.

(Reporting by Saeed Azhar; Additional reporting by Michael Derby; Editing by Jamie Freed and Andrea Ricci)