Trump pick to lead Federal Reserve has assets worth over $100m, disclosures indicate | Business
Former Federal Reserve governor Kevin Warsh, who was chosen by Donald Trump to head the central bank, submitted financial disclosures suggesting he had assets worth more than $100 million.
The document is said to be necessary so his nomination can advance in the Senate, starting with a hearing that has not yet been scheduled.
While it’s difficult to estimate net worth from U.S. government ethics forms because assets are valued in broad and sometimes open-ended categories, Warsh’s includes two investments worth more than $50 million each in Juggernaut Fund LP and $10.2 million in consulting fees from Wall Street giant Stanley Druckenmiller’s investment office.
The document, submitted overnight to the US government ethics office, is complex. Juggernaut Fund investments, for example, come with the caveat that underlying holdings “are not to be disclosed due to pre-existing confidentiality agreements” and Warsh’s promise that “if confirmed, I will dispose of this asset.”
They are among a number of holdings, including nearly two dozen THSDFS LLCs, some individually worth as much as $5 million, details of which are withheld and which Warsh has also promised to divest if approved.
OGE analyst Heather Jones, who signed Warsh’s document, noted these commitments in her review and said that “when the filer disposes of these assets, he or she will comply with the Government Ethics Act.”
The document lists dozens of other assets without specifying value, focusing mostly on names in artificial intelligence and crypto, among other sectors. It was not immediately clear why no values were listed, but OGE rules do not require values to be included for securities worth less than $1,000.
These holdings include Cafe X, described as a robotic coffee bar platform; A “bionic movement-enhancing wearable clothing” company called Cionic; Blast noted that “yield-producing Ethereum is the second layer”; and Contraline, “a reversible male birth control solution.”
Also included were the assets of Warsh’s wife, Jane Lauder, whose family holdings include the Estee Lauder cosmetics company and whose net worth Forbes estimates is around $1.9 billion. Some of Lauder’s municipal bonds were worth “over $1 million.”
Warsh’s liabilities appear relatively limited; these include a 2015 mortgage of up to $5 million from JP Morgan Chase at 2.75%, a revolving line of credit of up to $5 million from PNC Bank, listed at about 6%, and capital commitments of $1,950,000 to THSDFS LLC, one of the shares it promised to divest.
Although the timing remains uncertain, the filing of Warsh’s papers with the ethics office is an important step in his expected confirmation to replace Fed chair Jerome Powell.
A spokesman for the Senate banking committee on Monday declined to comment on the committee’s plans to consider the nomination. Committee rules require five business days’ notice to schedule a hearing once the necessary paperwork is available; This provides the earliest possible time for Warsh to appear before the committee next week.
Even after the hearing is scheduled, it’s unclear how quickly Warsh could be confirmed by the full Senate. A key Republican lawmaker has vowed to block Warsh’s confirmation until the Justice Department investigation into Powell over his oversight of renovations at the Fed’s headquarters in Washington, D.C., is concluded. So far there is little indication of progress on this issue.
Although a federal judge vacated the Justice Department’s subpoenas, finding that the investigation was an elaborate effort to pressure Powell to lower interest rates or resign, the department said it would appeal that decision.
Powell’s term as Fed chairman ends May 15, and he said he would continue to hold the post on a “pro tem” basis if Warsh is not confirmed and appointed by then.
