New York (HedgeCo.Net) – Citadel Investment, the hedge fund founded by billionaire Ken Griffin and one of the largest on Wall Street with over $25 billion in assets under management, has hired former chairman of the US Federal Reserve Ben Bernanke as a consultant, The New York Times reports.
The former economic adviser to George W. Bush will advise on financial and economic global issues at Citadel and will also meet with investors in the hedge fund. He did not disclose his fee.
In another case of the ‘revolving door’ between government and Wall Street, Alan Greenspan joined as a consultant Deutsche Bank, Pacific Investment Management Company (PIMCO) and hedge fund Paulson & Company.
Just over a month ago Jeremy C. Stein, who left the Fed last May, agreed to join as an advisor to BlueMountain Capital Management.
Bernanke, who had been sympathetic to the criticism of public opinion towards these ‘revolving doors’, explained that Citadel is outside the regulation of the Fed, so he will not be doing any ‘lobbying’.
“I wanted to avoid the appearance of a conflict of interest,” Bernanke said, according to the NYT. “I ruled out any firm that was regulated by the Federal Reserve.”
The former Fed Chairman will combine his work as a consultant Citadel with his current job as a researcher at the Brookings Institute and his activity as a lecturer and waiting to publish next October his book ‘The courage to act’ in which looks back on his years as head of the Fed in which had to deal with the worst economic and financial crisis since the Great Depression.
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