Washington Post – One of the Treasury Department’s top officials dealing with hedge funds has agreed to forgo up to $1.5 million in severance payments from his former employer, which invests in hedgefunds.
Emil Henry Jr., assistant secretary for financial institutions, came to Treasury in 2005 from Gleacher Partners LLC. This spring, he gave at least three speeches about hedge fund issues and chaired a closed-door meeting for government regulators about the $1 trillion industry. He also announced plans to host private meetings with hedge fund industry leaders.
Henry had received approval from government ethics lawyers for a severance agreement from Gleacher that called for him to receive 20 percent of the firm’s 2005 and 2006 profits, up to $2.5 million. He received part of his severance payment last year, totaling about $1 million.
He also signed an ethics agreement promising not to participate in “any particular matter that would have a direct and predictable effect on my financial interests.” His speeches did not advocate a particular policy position.
