Janet Yellen made millions by making speeches on Wall Street banks that she will soon regulate

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The former Federal Reserve chairman drew nearly $ 1 million in several speeches addressed to Citigroup (C), according to financial disclosure documents filed last week. Since leaving the Fed in early 2018, Yellen has also delivered paid speeches to other companies, including Google, Goldman Sachs, Bank of America and Salesforce.

It is common for former government officials, including Fed leaders, to make money by making speeches that share their views on economics and politics. However, disclosing Yellen’s profitable rates is awkward because he could soon be Biden’s main person in economics and finance.

If confirmed as Secretary of the Treasury, Yellen will have great power over everything from taxes and the weather to government tariffs and spending. Yellen would also chair a team of U.S. regulators who would respond to emerging risks to the financial system.

“This disclosure coincides with some broader democratic concerns about the revolving door and the access that some financial services companies have to key policymakers,” Isaac Boltansky, director of policy research at Compass Point Research, said in an email. & Trading.

Speeches from large banks

The fact that most of Yellen’s tariffs come from the financial industry could raise concerns that it is too cozy with Wall Street.

Yellen listed $ 952,200 in speech revenue at Citi, one of the largest banks in the country. He also revealed PIMCO’s fees, Barclays (BCS), Citadel, BNP Paribas, UBS (UBS), Swiss credit (CS), ING, Standard Chartered Bank and City National Bank.

Former government officials have been criticized for their post-political relations with large banks and corporations.

During the 2016 campaign, then-candidate Donald Trump criticized his opponent, former Secretary of State Hillary Clinton, for delivering millions of speeches to banks, securities companies and trade associations. WikiLeaks posted transcripts of some of these speeches.
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Biden’s transition team downplayed concerns about Wall Street’s Yellen revenue and noted that some speeches were moderated or covered by reporters.

“Look at his application history – he’s not someone who can punch when it comes to bad actors or bad behavior,” a Biden transition official told CNN Business.

Yellen appealed to some progressives in part because of their repression Wells Fargo (WFC). In February 2018, the Yellen-led Fed imposed unprecedented growth restrictions on Wells Fargo, sanctions for which the bank scandal has not yet recovered.

“He didn’t hesitate to tell some audiences that the rules governing his business should be tougher and stricter, and otherwise it could create problems for the economy,” the transition official said. of Biden.

Avoid conflicts of interest

However, transcripts of Yellen’s speeches on Wall Street banks have not been made public. And Biden’s transition manager did not immediately provide specific examples of how Yellen told companies that the rules might have to be tightened.

In a recent letter to ethics officials, Yellen pledged to take steps to “avoid real or apparent conflicts of interest” if it is confirmed that he heads the Treasury Department.
Specifically, Yellen promised that no later than 90 days after confirmation it will sell its stakes in several major companies, including Pfizer (PFE), Raytheon (RTN), DuPont (DD), ConocoPhillips (COP) and CNN AT&T (T).

In addition, Yellen plans to resign from the Washington Speakers Bureau, which has represented the former Fed chief in paid speeches.

Yellen also wrote that for a period of one year after his last speech he plans to quit issues related to various companies, including Sales force (CRM), Leading Japanese investment financial bank Daiwa Securities. Yellen said she “will not be personally or substantially involved in any particular matter” unless authorized.
However, Yellen also indicated that he would seek written permission to participate in matters related to other companies from which he would earn speaking fees, including Barclays, Citi (C), Citadel, Credit Suisse i Goldman Sachs (GS).

Confirmation without a doubt

Analysts said the disclosures are unlikely to disrupt Yellen’s confirmation by the U.S. Senate.

“Yellen will face questions about these speeches during the confirmation process, but it’s hard to predict that such disclosure will affect her chances of becoming secretary of the Treasury,” Boltansky said. “The fact is, he did absolutely nothing wrong and will continue to navigate until confirmation.”

Yellen’s forms were 21 pages long and included his stamp collection, which was estimated to be worth between $ 15,001 and $ 50,000.

Other former Fed officials have similarly earned honorary benefits after leaving the U.S. central bank. For example, Ben Bernanke, who led the Fed through the 2008 financial crisis, earned up to $ 250,000 per speech at one point. In 2015, Bernanke was hired as a senior advisor to the Chicago-based hedge fund firm Citadel, a role he still holds today.
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Yiden’s nomination for Biden has received widespread support, including progressive leaders such as Senator Elizabeth Warren. Even some Republicans like Senator Chuck Grassley and Senator John Thune spoke positively about Yellen.

Greg Valliere, chief political strategist of the United States at AGF Investments, doubts that talk rates will prevent Yellen from becoming the first woman to head the U.S. Treasury Department.

“He has a goodwill depot on Capitol Hill that will easily earn confirmation,” Valliere said.

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