WASHINGTON, D.C. — President Donald Trump nominated former Federal Reserve governor Kevin Warsh to succeed Jerome Powell as chair of the U.S. Federal Reserve. Warsh submitted financial disclosures to the U.S. Office of Government Ethics that suggest he holds assets worth well over $100 million.
The disclosures include two investments worth more than $50 million each in Juggernaut Fund LP, whose underlying assets are not disclosed due to pre-existing confidentiality agreements. Warsh also reported $10.2 million in consulting fees from the investment office of Stanley Druckenmiller. He pledged to divest the Juggernaut Fund assets if confirmed.
The filings also list around two dozen holdings in THSDFS LLC, some individually worth as much as $5 million, along with $1,950,000 in capital commitments to the same entity. Warsh pledged to divest his THSDFS LLC holdings if confirmed. "Once the filer divests these assets, he will be in compliance with the Ethics in Government Act." Office of Government Ethics analyst Heather Jones said in the disclosures.
Beyond the largest holdings, the disclosures list dozens of other assets without stating their value, mostly in the artificial intelligence and cryptocurrency sectors. OGE rules do not require values to be included for securities worth less than $1,000. Among the listed holdings are Cafe X, a robotic coffee bar platform; Cionic, a bionic movement-enhancing wearable clothing firm; Blast, a yield-generating Ethereum layer two; and Contraline, a reversible male contraceptive company.
The disclosures also include holdings belonging to Warsh's spouse, Jane Lauder, whose family interests include the Estée Lauder cosmetics company. Forbes estimates Lauder's net worth at around $1.9 billion. Some of her municipal bond holdings are valued at over $1 million. Warsh's listed liabilities include a 2015 mortgage of up to $5 million from JP Morgan Chase at 2.75% and a revolving line of credit of up to $5 million from PNC Bank at around 6%.
Powell's tenure as head of the Federal Reserve ends on May 15. He said he will continue to fill the role on a pro tem basis if Warsh is not confirmed and in place by that date. No date has been set for the Senate Banking Committee hearing on Warsh's nomination. Committee rules require five business days' notice to schedule a hearing after receiving required paperwork.
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