Elizabeth Warren attacks Kevin Warsh over financial disclosures

Kevin Warsh’s newly released financial disclosures shed light on the Federal Reserve presidential candidate’s vast fortune, but they also raise questions about portions of his holdings that are not fully disclosed in the paperwork. That could be a challenge for Warsh, who is trying to overcome a legacy of ethics scandals under current chairman Jerome Powell.

Warsh disclosed in his application to the Senate on Tuesday that he has assets worth approximately $135 million to $226 million. That’s on top of the $1.9 billion fortune Forbes estimates is held by his wife, Jane Lauder, granddaughter of cosmetics founder Estée Lauder.

But Warsh’s statements don’t reveal everything about his wealth. First, the forms only require a wide range of values ​​to be reported, making it impossible to accurately calculate his wealth. The two separate assets are listed as being worth more than $50 million each. Their values ​​may be just above this threshold or much higher.

Sen. Elizabeth Warren, D.-Mass., drew attention Thursday to this pair of holdings, both in a financial vehicle called the Juggernaut Fund. Warsh notes in his filings that they are linked to Duquesne Family Office, the financial firm run by investor Stanley Druckenmiller. Warsh had worked there since leaving the Fed more than 15 years ago.

But that’s all the information Warsh has given about some of the assets that appear to make up the bulk of his personal wealth. In the filings, Warsh declines to say what actually happened with his Juggernaut holdings and several other smaller funds because he is bound by “pre-existing confidentiality agreements.”

“Not talking about more than $100 million in assets means it’s not possible to understand the complexities of it,” Warren told reporters at the Capitol on Thursday.

Warren said Warsh was “the first Fed nominee to not abide by ethics rules and the first Trump candidate to not abide by ethics rules this term.” A spokesman for the Banking Committee said the Congressional Research Service confirmed Warsh’s outlier status.

A government ethics official’s memo on their filing says Warsh does not currently comply with ethics rules regarding holdings where the funds do not disclose their underlying holdings.

Warsh has promised to divest these assets within 90 days of approval. And when he does, the ethics officer states, Warsh will return in compliance with ethics.

The Office of Government Ethics declined to comment, saying it does not discuss individuals’ applications.

Warsh declined to comment. He met with Warren early Thursday.

“This is an unusual situation,” said Cynthia Brown, senior ethics counsel for Citizens for Responsibility and Ethics in Washington, a watchdog group.

“The failure to disclose many items related to mutual funds by a Fed nominee gives cause for pause and raises questions about how thorough a review process could be without that disclosure and how the divestment could be fully justified,” Brown said.

Financial disclosures have become a sensitive issue for the Fed, where Powell has chaired since 2018. The Fed banned top officials from owning individual stocks, bonds, cryptocurrencies and some other assets in 2022. This comes after a controversy in which some officials came under scrutiny for some of their work.

Fed Governor Adriana Kugler left her post last year after Powell refused to sign a waiver on a disclosure form showing he had some impermissible assets. That opening was filled by former Trump administration economist Stephen Miran.

Warsh will take Miran’s seat if confirmed by the Senate. A hearing on his nomination is scheduled for Tuesday.