Exasperation in Three Acts: Act 2 -- Ben Bernanke Goes to Citadel
The former Chairman of the Federal Reserve will become a consultant to Citadel, a large hedge fund complex. After hitting the hedge fund speaking circuit at $200,000 an appearance, Mr. Bernanke will provide economic advice to Citadel’s investment committee and meet with their clients. Mr. Bernanke defended his decision to join Citadel by pointing out that he will not be lobbying for the firm and that the Federal Reserve doesn’t regulate Citadel. I don’t think these distinctions are terribly meaningful.
It is hard to see how Mr. Bernanke is going to add any real value to Citadel’s portfolios. Rather, he’ll give Citadel a nice intellectual veneer that will help lure investors and placate regulators. Better yet from Citadel’s perspective, Mr. Bernanke’s compensation will be rounding error.