Following in the footsteps of other ex federal officials, who have entered into the private investment realms, like former Treasury Secretary Mr. Timothy Geithner and CIA director Mr. David H. Petraeus. Former Federal reserve chairman, Ben Bernanke has also taken up a non-exclusive offer at a hedge fund.
Mr. Bernanke has joined Citadel, a $25 billion global multi-strategy hedge fund and asset manager based in Chicago, Illinois. The firm deploys capital across multiple asset classes and strategies. The former Federal reserve chairman is said to have refused offers from several other banks before the offer of Citadel. Partly, because the fund is not regulated by the Federal Reserve and his role would not involve any lobbying.
As the newest senior adviser at Citadel, Mr. Bernanke’s role includes advising the hedge fund on a number of global economic and financial issues. On top of this, he will go on international travels and negotiate with investors.
The agreement between him and Citadel is non-exclusive. He will remain a full-time fellow at the Brookings Institution. Where the former Federal reserve chairman launched a personal blog not so long ago. Reportedly, both parties have stated that the new position of Mr. Ben Bernanke will not interfere drastically, making it possible for him to maintain the blog duties.
Other Federal Reserve members to make a similar switch in the past include Mr. Alan Greenspan, as the ex Federal Reserve chairman got the position as adviser back in 2008 at hedge fund Paulson & Co. Whereas, the former Federal Reserve Board governor of two years, Mr.Jeremy Stein got appointed as a consultant at hedge fund BlueMountain just over last month. Therefore, its not surprising that Mr. Bernanke joins America’s biggest hedge fund.