Hoenig, whose financial disclosure forms were released today by the Office of Government Ethics, reported between $1 million and $5 million in a government securities fund and between $2,000 and $30,000 in two checking accounts. He disclosed a pension from the Fed system and a life insurance policy.
The former regional Fed chief filed the disclosure as part of the process of being nominated by President Barack Obama to serve as vice chairman of the Federal Deposit Insurance Corp. The disclosure provides a rare window into the finances of the Fed’s regional presidents who -- unlike Fed governors who are government appointees -- are not required to disclose their personal finances.
Hoenig, who retired from the Fed on Oct. 1 after 20 years as the Kansas City Fed president, earned $380,500 a year, according to the Fed’s annual report. His Fed pension pays $21,980 a month, according to the form. The report of his assets fit in six lines on a single page. The mortgage and value of a primary residence do not need to be reported on the form.
The Government Accountability Office criticized the Fed’s standards for managing conflict of interest in a July report. That report revealed that the New York Fed’s William C. Dudley received a waiver in 2008 to own shares of American International Group Inc. after the insurer received a bailout from the central bank. He also retained holdings in General Electric Co. which participated in Fed rescue programs.
Hoenig, 65, would replace Martin J. Gruenberg as vice chairman of the FDIC. As president of the Kansas City Fed, Hoenig urged the Fed to tighten monetary policy to prevent financial instability and the creation of asset bubbles. In 2010, he dissented from all eight decisions of the policy-making Federal Open Market Committee. His eight straight dissents tied former Fed Governor Henry Wallich’s record in 1980 for most in a single year.
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