In Exchange with Warren, Warsh Refuses to Disclose Who Paid Him More Than $100 Million to Facilitate His Divestitures Days Before He Took Office as Fed Chair

In Exchange with Warren, Warsh Refuses to Disclose Who Paid Him More Than $100 Million to Facilitate His Divestitures Days Before He Took Office as Fed Chair

Warren: "Over the last five years, at least six senior Fed officials have been implicated in serious ethics scandals related to personal stock trading and self-dealing. But instead of trying to repair this broken culture, I'm concerned that you seem to be embracing it."

Watch hearing here

Washington, D.C. - In a hearing exchange today with U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing and Urban Affairs Committee, Kevin Warsh, Chairman of the Board of Governors of the Federal Reserve System (Fed), refused to disclose to whom he sold over $100 million worth of shares in private investment vehicles just days before taking office at the Fed.

Transcript of Ranking Member Warren's exchange with Warsh on selling $100 million worth of shares in private investment vehicles days before becoming Fed Chair:

Sen. Warren: Thank you, Mr. Chairman. So, the Federal Reserve has long been plagued by a culture of corruption and coziness with Wall Street.

Over the last five years, at least six senior Fed officials have been implicated in serious ethics scandals related to personal stock trading and self-dealing.

But instead of trying to repair this broken culture, I'm concerned that you seem to be embracing it.

At the time of your nomination, you owned more than $100 million worth of shares in private investment vehicles called the Juggernaut Funds and THSDFS LLC. And, you refused to disclose the underlying assets to the Senate and to the public. You say now that you've sold those shares. In other words, someone wrote you a check for more than $100 million days before you entered office. Chair Warsh, who wrote that check?

Chair Warsh: Senator Warren, this is a discussion you and I had in the public square seven weeks ago. And I'm thrilled to tell you that I've fully honored the obligations I had under the Office - the agreement I had with the Office Government Ethics. And there's continued disclosure which I'm happy to make as consistent with the agreement.

Sen. Warren: I asked you a very specific question. Who gave you $100 million right before you were sworn in. Was it a billionaire who has business with the Fed? Was it Stanley Druckenmiller, who has made billions of dollars betting on what the Fed does? Or was it a different billionaire? Who gave you the money?

Chair Warsh: I will fully comply with the Office of Government Ethics.

Sen. Warren: That's not an answer.

Chair Warsh: Well it is an answer actually, Senator.

Sen. Warren: No, it's not.

Chair Warsh: Because there are obligations and I will satisfy them completely.

Sen. Warren: It's $100 million right before you were sworn in, and you won't tell the American people where it came from.

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