Ben Bernanke to Join Citadel as Adviser
The revolving door between the Washington and Wall Street has existed for quite some time. Funds are willing to pay top dollar for professionals who can better help them understand and navigate through the uncertain economic environment.
Citadel Investment Group, the $25 billion hedge fund founded by the billionaire Kenneth C. Griffin. He will offer his analysis of global economic and financial issues to Citadel’s investment committees. He will also meet with Citadel’s investors around the globeMr. Bernanke will become a senior adviser to the
Here are some examples of former Washington employees who joined the private sector:
- Alan Greenspan, former Fed chairman, left the Fed, he consulted for Deutsche Bank, PIMCO, and Paulson & Co
- Tim Geithner, former Treasury secretary, joined Warburg Pincus
- David Petraeus, former head of the CIA, joined KKR
- Bernanke will now join Citadel as an adviser
Citadel, in part, because it “is not regulated by the Federal Reserve and I won’t be doing lobbying of any sort.In an interview, Mr. Bernanke said he was sensitive to the public’s anxieties about the “revolving door” between Wall Street and Washington and chose to go to
While the above is true, there are still many critics of regulators making moves like this. One of the more notable advocates of putting a full stop to the revolving door is Massachusetts senator, Elizabeth Warren.
We need to put a lock on the revolving door...[w]e need to ensure that regulators aren't captured by the big banks in exchange for the hopes of future jobs
She goes on to say...
We can't build a strong reliable bank oversight system so long as the revolving door keeps putting bank executives in the role of temporary cops..[w]e gotta worry about this revolving door both ways
She's got a point, right?
Many of these PE / HF hires are just for show. Helps fund raising efforts with investors. Also, particularly from a PE perspective, the relationships these guys have don't hurt (for deal making, less for lobbying on the Hill).
I think this will be his main duty "He will also meet with Citadel’s investors around the globe". What a great sales tool.
I agree that the revolving door is kind of sickening in principle but in reality what can you do? Not let people seek meaningful employment because they served in a government post? Or only let them serve in something like a university teaching post? Or not be able to get talent in government posts because the employee could never be anything except for a civil servant.
Like I said, it's pretty incestuous but I don't think there's a practical solution.
"Meaningful employment" as in "show me the money" type ?
I think the only “solution” is to make government jobs pay comparable salaries to the private sector, but that’s completely unpalatable to most people because it would mean raising many high-level government salaries to 10x their current pay.
You also have to factor in job security. That would discount govt max pay.
Yeah, but even by that standard most high level government jobs are underpaid. I mean, the president makes less than an MD at GS, and has way more responsibility and impact than anyone at GS does.
It's not America it's Americo (Co as in Corporation)
Dingdong08
I've had more damage inflicted on me than any other human on the planet because of this incestuous relationship. That being said, I couldn't agree with you more.
I am almost 100% confident that any legislation that was passed to restrict future employment based on your employment history would be found unconstitutional on several levels.
Unfortunately, we have to rely on the ethics of former managers at Goldman Sachs and government employees to resolve this conflict of interest.
Its these excellent exit opportunities available to former senior government officials that continue to attract talents into these 'under-paid' jobs. i am actually comfortable to see these transitions so that the public sector can attract stable inflow of talented people to run the country.
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