Kevin Warsh, the former Federal Reserve governor chosen by President Donald Trump to lead the central bank, has submitted financial disclosures that suggest he holds assets worth well over $100m.
The document is required for his nomination to advance through the Senate, beginning with a yet-to-be-scheduled hearing.
While it is difficult to estimate net worth from US government ethics forms because assets are valued in broad and sometimes open-ended categories, Warsh’s 69-page disclosure includes two investments worth more than $50m each in the Juggernaut Fund and $10.2m in consulting fees from the investment office of Wall Street giant Stanley Druckenmiller.
The document filed overnight with the US Office of Government Ethics (OGE) is complex. The Juggernaut Fund investments, for example, come with the caveat that the underlying assets “are not disclosed due to pre-existing confidentiality agreements”, with a promise from Warsh that “I will divest this asset if confirmed”.
They are among a series of holdings, including around two dozen in THSDFS, some individually worth as much as $5m, where details were withheld and which Warsh also pledged to divest if confirmed.
OGE analyst Heather Jones, who signed off on Warsh’s document, noted those commitments in her review and said that “once the filer divests these assets, he will be in compliance” with the Ethics in Government Act.
The document lists dozens of other assets without stating the value, mostly focused, judging by the names, in AI and crypto, among other sectors. It was not immediately clear why no value was listed, but OGE rules do not require values to be included for securities worth less than $1,000.
Those holdings include Cafe X, described as a robotic coffee bar platform; a “bionic movement-enhancing wearable clothing” firm called Cionic; Blast, notated as “yield-generating Ethereum layer two”; and Contraline, a “reversible male contraceptive solution”.
The holdings of Warsh’s spouse, Jane Lauder, whose family interests include the Estee Lauder cosmetics company and who Forbes estimates has a net worth of $1.9bn, were included. Some of Lauder’s municipal bond holdings were valued simply at “over $1m”.
Warsh’s liabilities appear comparatively limited, including a 2015 mortgage of up to $5m from JP Morgan Chase at 2.75%, a revolving line of credit of up to $5m from PNC Bank listed at a rate of about 6%, and capital commitments of $1.95m to THSDFS, one of the interests he has promised to divest.
The filing of Warsh’s paperwork with the ethics office is a key step in his expected confirmation to succeed Fed chair Jerome Powell, though the timing remains uncertain.
A spokesperson for the Senate banking committee on Monday declined to comment about plans for handling the nomination. Committee rules require five business days’ notice to schedule a hearing once the needed paperwork is in hand, making next week the earliest possible timing for Warsh to appear before the committee.
Even once the hearing is scheduled, it is unclear how quickly Warsh could be confirmed by the full Senate.
A key Republican legislator has vowed to block Warsh’s confirmation until the conclusion of a department of justice investigation into Powell for his oversight of renovations to the Fed’s headquarters in Washington. There is little indication of progress so far on that matter.
Though a federal judge quashed the justice department’s subpoenas, finding the probe to be a thinly disguised effort to pressure Powell to lower interest rates or resign, the department has said it will appeal against that decision.
Powell’s tenure as head of the Fed ends on May 15, and he has said he will continue to fill the role on a “pro tem” basis if Warsh is not confirmed and in place by that time.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.