Bernanke to advise hedge fund Citadel: NYT
(Reuters) - Ben Bernanke, former chairman of the U.S. Federal Reserve, has agreed to become a senior adviser to Citadel Investment Group, a $25 billion hedge fund founded by billionaire investor Kenneth Griffin, the New York Times reported on Thursday.
Bernanke, who handed the reins of the U.S. central bank to Janet Yellen last year, will advise Citadel's investment committees on global economic and financial issues and meet the fund's investors, the newspaper said. (nyti.ms/1Oh5f4A)
Reuters was not immediately able to reach Citadel or Bernanke for comment outside regular U.S. business hours.
Big-name hedge funds are making a habit of hiring former central bankers and other government officials as their funds grow in size and scope.
Bernanke's predecessor, Alan Greenspan, joined hedge fund Paulson & Co as adviser in 2008. Jeremy Stein, a Federal Reserve Board governor for two years, joined hedge fund BlueMountain as a consultant last month.
Bernanke told the New York Times that he was sensitive to public anxiety about the "revolving door" between Wall Street and Washington.
He chose Citadel, in part, because the fund is not regulated by the Federal Reserve and his role would not involve any lobbying. Bernanke told the newspaper that he had declined offers from banks.
Chicago-based Citadel, founded in 1990, is a multi-strategy hedge fund and ranks as one of the industry's biggest. Bernanke will receive an annual fee, which he did not disclose, but will neither own a stake nor receive a bonus based on the fund's performance.
His arrangement with Citadel is not exclusive and he could take on other consulting roles, the New York Times reported. Continued...