Goldman Sachs (GS) has named Robert Kaplan, the former president of the Federal Reserve Bank of Dallas, as vice chairman. The influential former policymaker and Goldman alumnus will provide strategic advice to the bank's global clients, working closely with teams across global banking and markets, as well as asset and wealth management. "Kaplan brings a wealth of knowledge, deep relationships, and significant global leadership expertise to his role," said Goldman Sachs CEO David Solomon in a statement. Kaplan, who previously spent over two decades at Goldman Sachs, will be based in Dallas.
In September 2021, Kaplan announced his resignation as head of the Dallas Fed following a controversy over his personal trading activity. Although the Fed's internal watchdog concluded that Kaplan did not violate the law, it acknowledged that he created the appearance of a conflict of interest in how he invested and reported his financial activity between 2019 and 2021. Kaplan, 66, has maintained that he adhered to all Federal Reserve ethical standards and compliance rules.
Market Overview:
-Goldman Sachs appoints Robert Kaplan, the former president of the Dallas Fed, as vice chairman.
Key Points:
-Kaplan brings strategic expertise and global connections to Goldman Sachs after a 2-decade prior stint at the firm.
-His role focuses on client advice across various business units, including banking, markets, and wealth management.
-The appointment comes amid leadership changes at Goldman Sachs, with both high-profile departures and strategic returns.
Looking Ahead:
-Kaplan's experience could enhance Goldman Sachs' client relationships and global strategy.
-His past controversy regarding personal trading activity may cast a shadow on his return to the firm.
-This move underscores Goldman Sachs' focus on bolstering its leadership team after recent losses.
This appointment is part of Goldman Sachs' effort to strengthen its leadership bench after recent high-profile departures, including Stephanie Cohen, Jim Esposito, and Julian Salisbury. The bank had previously brought back Tom Montag, a senior banking executive, to serve on its board. Kaplan, who initially joined Goldman Sachs in 1983 and became a partner in 1990 before retiring in 2006, expressed his excitement about working with the "extraordinary array of talented people" at Goldman Sachs to help serve its clients and enhance the firm's unique culture.
Kaplan's return adds another heavyweight to Goldman Sachs' management committee, which will leverage his deep relationships and strategic insights to navigate the evolving financial landscape. His appointment reflects the bank's ongoing commitment to reinforcing its leadership and enhancing its global strategic capabilities.
