Former Fed chairman Ben Bernanke signs on as advisor to Citadel

Ben Bernanke, the former Federal Reserve chairman who could move financial markets with just a few words, has been appointed senior adviser at Citadel, a $25 billion (£16 billion) hedge fund founded by billionaire Kenneth Griffin.

According to the New York Times, Mr Bernanke’s brief is to offer his analysis of global economic and financial issues to Citadel’s investment committees, as also to meet with the hedge fund’s investors around the world.

In an interview, Mr Bernanke said he had declined offers by banks as he wanted to avoid the appearance of a conflict of interest. “I ruled out any firm that was regulated by the Federal Reserve,” he clarified, conscious that public was anxious about the “revolving door” between Wall Street and Washington.

He said he picked Citadel because it was not “regulated by the Federal Reserve and I won’t be doing lobbying of any sort.”

“I was looking for an opportunity to use my skills and knowledge,” he said. “This is an interesting firm.”

Mr Bernanke stepped down from the Fed last year, and has since been visible on the speaking circuit, attending dinners and conferences organised by financial institutions and hedge funds. According to the New York Times, he can now earn as much as $200,000 for a single speaking assignment – an amount he earned in a whole year at the Fed.

Details of Mr Bernanke’s compensation at Citadel are not available. However, he clarified that he would be paid an annual fee but would not have an ownership stake in the firm nor receive any performance linked bonuses. He is not exclusively tied to Citadel, and can take on other consulting assignments, though he remains a full-time fellow at the Brookings Institution.

Mr Griffin said in a statement: “We are honoured to welcome Dr. Bernanke to Citadel. He has extraordinary knowledge of the global economy and his insights on monetary policy and the capital markets will be extremely valuable to our team and to our investors.”

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.