Ben Bernanke to Advise Billionaire Ken Griffin’s Hedge Fund

Ben S. Bernanke
Ben S. Bernanke, who stepped down as Fed chairman early last year, will remain a full-time fellow at the Brookings Institution, according to the report. Photographer: Andrew Harrer/Bloomberg

Former Federal Reserve Chairman Ben S. Bernanke is joining Citadel LLC, the hedge fund run by Chicago billionaire Kenneth Griffin, as a senior advisor.

Bernanke will consult with Citadel on developments in monetary policy, financial markets and the global economy, the firm said in a joint statement with Bernanke on Thursday.

“Citadel is a dynamic firm with tremendously talented people and a rigorous approach to research and investing,” Bernanke said. “I look forward to adding my perspective on a range of issues affecting our global economy.”

Bernanke, 61, led the U.S. central bank during the longest and deepest economic downturn since the Great Depression. Bernanke will be paid an annual fee and won’t own a stake in the firm or get a bonus, the New York Times reported earlier, citing an interview.

Talks between Citadel, which oversees about $26 billion in assets, and Bernanke started six months ago, a person with knowledge of the situation said. He will initially start meeting with Citadel’s investors in Europe and Asia, said the person, who asked not to be named because the details are private.

Griffin said Bernanke’s insights on monetary policy and capital markets will be “extremely valuable to our team and to our investors.”

Recent Hires

Bernanke joins a roster of top policy makers who have recently moved to Wall Street. Former Fed governor Jeremy Stein was last month hired by BlueMountain Capital Management to help the New York-based hedge fund analyze the impact of central bank decisions. Former Treasury Secretary Timothy Geithner last year joined New York-based private equity firm Warburg Pincus as president.

Bernanke was a Princeton University economics professor and chairman of President George W. Bush’s Council of Economic Advisers before succeeding Alan Greenspan as chief of the U.S. central bank in 2006. He left the Fed in January 2014 after two four-year terms as chairman.

Bernanke will remain a full-time fellow at the Brookings Institution.

“He will be providing Citadel his views on the global economy and will not lobby Congress, the Fed, or any other governmental body,” D.J. Nordquist, a spokeswoman for the Washington-based policy research center, said in an e-mailed statement.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE