By Michael S. Derby
May 19 (Reuters) – Incoming Federal Reserve Chair Kevin Warsh on Tuesday disclosed an initial round of planned asset sales ahead of being sworn in for the job, though the disclosures did not say who the sales were made to.
In an Office of Government Ethics form, Warsh listed the names of the holdings but not the dollar value of the sales. At his confirmation hearing in April, Warsh, on track to be the richest Fed chair in the institution’s history, said he would bring his holdings in line with government and Federal Reserve ethics rules.
Warsh’s form listed the sale of an investment called Juggernaut Fund L.P. On his financial disclosure form released last month ahead of his confirmation hearing, he listed two entries for the fund with a combined value of at least $100 million.
Warsh also disclosed the sale of a number of other assets, as well as an asset divested by his wife.
The incoming Fed leader is scheduled to be sworn in on Friday, succeeding current leader Jerome Powell, who plans to stay on in his governor role while navigating tensions between the central bank and the Trump administration.
PLANNED SALES
Warsh’s disclosure had been expected given an ethics agreement made with the government to bring his wealth in line with prevailing ethics rules. Who or what entities bought these assets is likely to be an issue for Warsh once in office, as some Democrats have already expressed concern about potential buyers.
“So that there’s no question about my independence, no question about the clarity of my financial record, I agreed to divest virtually all of my financial assets,” Warsh told members of the Senate Banking Committee on April 21.
Warsh said that after going through the required divestments, as Fed chair he would possess “virtually no financial assets,” with his fortune sitting in close to all cash.
Warsh’s financial disclosure last month reported at least $100 million in holdings across a wide range of investments, many of which the incoming Fed chair declined to disclose, citing confidentiality agreements.
The Juggernaut investments listed on Tuesday as being sold had produced potentially more than $10 million a year in income for Warsh, according to his April disclosure.
At his confirmation hearing, Senator Elizabeth Warren said she was concerned about who might buy Warsh’s assets and whether it could create a conflict of interest.
Federal Reserve ethics rules formalized in early 2022 are among the toughest in government and were tightened in the wake of a trading controversy associated with several central bankers leaving the institution amid multiple Inspector General investigations.
Fed rules sharply limit what officials can hold and how they can move money around. They are designed to ensure the public has confidence policymakers are working with the public’s interest in mind. Those rules also apply to immediate family members.
(Reporting by Michael S. Derby, editing by Deepa Babington)
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