Define regulatory capture.
Now that Richard Fisher has been put out to pasture (and by “put out to pasture” we actually mean “works for Barclays”), the Dallas Fed needed a new President. Of course when you’re looking around for possible Fed officials one place you want to check is the pool of former Wall Street investment bankers because after all, we have to keep the revolving door spinning.
With that in mind, we present the new President of the Dallas Fed, Harvard professor Robert S. Kaplan who until 2006 was vice chairman of none other than Goldman Sachs. Here's the press release from the Fed:
The Federal Reserve Bank of Dallas today announced the appointment of Robert Steven Kaplan as president and chief executive officer. In this role, Kaplan will represent the Eleventh Federal Reserve District on the Federal Open Market Committee in the formulation of U.S. monetary policy and will oversee the 1,200 employees of the Dallas Fed.
His appointment is effective September 8, 2015.
Kaplan, 58, is the Martin Marshall Professor of Management Practice and a Senior Associate Dean at Harvard Business School. He is also co-chairman of the Draper Richards Kaplan Foundation, a global venture philanthropy firm that invests in developing non-profit enterprises dedicated to addressing social issues.
Kaplan was appointed by eligible members of the Dallas Fed board of directors and approved by the Board of Governors of the Federal Reserve System. He succeeds Richard W. Fisher, who retired from the Dallas Fed in March 2015.
“The Bank’s search committee considered a broad pool of excellent candidates to ensure we met our goal of finding someone who has a deep understanding of the economy, financial system and monetary policy—yet who also sincerely appreciates the impact decisions made by the Federal Reserve have on people from all walks of life,” said Dallas Fed board chair Renu Khator, chancellor of the University of Houston.
“I believe we found that person in Robert Steven Kaplan. He has had distinguished careers in business and academia, and has the right combination of leadership skills, business experience and public-service mindset. Rob is committed to improving the economy for all Americans.”
Khator acknowledged the contributions of board members Matthew Rose, BNSF Railway Company executive chairman, and Ann Stern, Houston Endowment Inc. president and CEO, who led the Dallas Fed’s search committee.
“I’m honored to be serving the people of the Eleventh Federal Reserve District and the nation as president of the Dallas Fed,” said Kaplan. “I look forward to working with the superb professionals of this Bank and throughout the Federal Reserve System in their vital service to the District and the country.”
Prior to joining Harvard in 2006, Kaplan was vice chairman of The Goldman Sachs Group, Inc. with global responsibility for the firm's Investment Banking and Investment Management Divisions. Previously, he served as global co-head of the Investment Banking Division. He was also a member of the firm’s Management Committee and served as co-chairman of the firm’s Partnership Committee and chairman of the Goldman Sachs Pine Street Leadership Program.
Upon leaving the firm in 2006, he was given the honorary title of senior director.
Kaplan is the author of several books, including What You Really Need to Lead: The Power of Thinking and Acting Like an Owner; What You're Really Meant To Do: A Road Map for Reaching Your Unique Potential; and What to Ask the Person in the Mirror: Critical Questions for Becoming a More Effective Leader and Reaching Your Potential.
Kaplan serves on the boards of State Street Corporation, Harvard Management Company and Heidrick & Struggles International, Inc. He is also a trustee of the Ford Foundation, founder and co-chairman of the TEAK Fellowship, co-founder and chairman of Indaba Capital Management, LP and chairman of the Investment Advisory Committee at Google, Inc. He will step down from these positions before assuming his responsibilities at the Dallas Fed.
He will continue to serve as co-chairman of Project A.L.S., on the board of Harvard Medical School and as co-chairman of the Draper Richards Kaplan Foundation.
Kaplan previously served on the board of Bed, Bath & Beyond, Inc. and was appointed by the Governor of Kansas as a member of the Kansas Healthcare Policy Authority Board. He also served as a member of the Investors Advisory Committee on Financial Markets of the Federal Reserve Bank of New York.
Born and raised in Prairie Village, Kansas, Kaplan received a bachelor’s degree in business administration from the University of Kansas and a master’s degree in business administration from Harvard Business School.
The Dallas Fed serves the Eleventh Federal Reserve District, which encompasses Texas, northern Louisiana and southern New Mexico. As part of the nation’s central banking system, the Dallas Fed participates in setting monetary policy, supervises and regulates numerous financial institutions, and provides financial services to depository institutions and the U.S. government.