Home > corruption, ethics > Ben Bernanke: The revolving door between Wall Street and U.S. government agencies continues to revolve.

Ben Bernanke: The revolving door between Wall Street and U.S. government agencies continues to revolve.

from David Ruccio

Apparently, the door between Wall Street and the U.S. government agencies in charge of regulating Wall Street continues to revolve. Former Federal Reserve chair Ben Bernanke is the latest to walk through the door. 

For eight years, Ben S. Bernanke, the former Federal Reserve chairman, was steward of the world’s largest economy. Now he has signed on to advise one of Wall Street’s biggest hedge funds.

Mr. Bernanke will become a senior adviser to Citadel, the $25 billion hedge fund founded by the billionaire Kenneth C. Griffin. He will offer his analysis of global economic and financial issues to Citadel’s investment committees. He will also meet with Citadel’s investors around the globe.

It is the latest and most prominent move by a Washington insider through the revolving door into the financial industry. Investors are increasingly looking for guidance on how to navigate an uncertain economic environment in the aftermath of the financial crisis and are willing to pay top dollar to former officials like Mr. Bernanke.

Mr. Bernanke joins a long parade of colleagues and peers to Wall Street and investment firms. After stepping down, Mr. Bernanke’s predecessor, Alan Greenspan, was recruited as a consultant for Deutsche Bank, the bond investment firm Pacific Investment Management Company and the hedge fund Paulson & Company.

Last month, Jeremy C. Stein, a former Fed governor, agreed to join the $20 billion hedge fund BlueMountain Capital Management, where he will advise managers on issues like financial regulation, risk and the implications of the Fed’s monetary policy. Mr. Stein resigned from the Fed last May to return to his tenured professorship at Harvard’s department of economics.


  1. April 20, 2015 at 2:00 am

    Ben ‘I didn’t see it coming’ Bernanke can’t possibly have been hired for his economic forecasting skills.

  2. April 20, 2015 at 10:34 am

    They do not want to take rest. I feel sorry for them as not enjoying the benefits of their accumulated wealth even in the old age. This is what orthodoxy wants us to do. Is there a theory that can explain this phenomenon, “people once serve the Fred, will get hired as soon as they leave the Fred”. It needs much explanation and understanding.

    • Jeff Z
      April 21, 2015 at 1:56 pm

      It’s less work and pays better than writing a memoir . . .

      • April 21, 2015 at 3:10 pm

        can u further explain your point

  3. Jeff Z
    April 22, 2015 at 10:53 pm


    Yes. Most ‘research’ in many wall street firms, be they hedge funds or investment banks, is not really performed at the levels at which these economists are being hired. Most internal research is performed by research analysts, often assigned to watch specific sectors of the economy, such as automobiles. They are generally paid far less than the C level officers of the firm.

    A lot of this is some form of ‘prestige competition’ where what the firm’s pay for is a name, not necessarily any work that they might perform. “Senior Adviser” could be thought of as another term for “In house consultant.” The actual job duties of people in these positions are often quite vague, and deliberately so. Which leads many, including me, to question the actual value of big names in such positions, and whether they actually perform any meaningful analysis or work.

    Actually writing your autobiography or a memoir requires going back through personal recollections and files (if you still have them) to bolster your memory. After writing the book, there is no guarantee of sales and royalties. More work for an uncertain payoff.

    Sorry for the delay. I finally found a spare moment as I near the end of the semester.

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