Obama’s Trade Nominee Agrees to Sell Citigroup HoldingsBrian Wingfield
Michael Froman, nominated to be U.S. Trade Representative, said he and his wife will divest holdings with his former employer Citigroup Inc. if he wins Senate confirmation.
Froman, currently the deputy national security adviser to President Barack Obama for international economic affairs, listed funds making private-equity and infrastructure-related investments among the Citigroup holdings, according to disclosure documents released by the Office of Government Ethics.
He said will divest his holdings in Citigroup Capital Partners I LP and Citigroup Employee Fund of Funds LP within 90 days of being confirmed because confidentiality agreements bar him from disclosing the two funds’ underlying assets.
If confirmed, Froman, 50, will lead an agency that is trying to create the two largest free-trade areas in U.S. history, with the 27-nation European Union and 11 Pacific-region nations. He has been a key adviser to Obama on trade and economic policy, and as trade representative he would be responsible for overseeing negotiation of the accords.
Froman, a former executive with New York-based Citigroup, said he will also divest his interests in Citigroup Capital Partners II LP and CVC International Growth Partnership (Employee) II LP, according to the filings. His wife, Nancy Goodman, will divest interests in Citi Infrastructure Partners Carried Interest LP, also within 90 days of his confirmation. Froman didn’t provide a reason for those divestitures.
He said he will recuse himself from matters that may have an effect on the Citigroup assets until he and has wife have divested the funds.
The nominee listed assets valued at $11 million to $47 million, according to the filings, which only require nominees to list a range. Those holdings generated $399,000 to $3.2 million of income.
Froman’s holdings include investment funds, municipal bonds, residential real estate in New York worth at least $5 million and partial ownership of commercial real estate in California and Colorado.
His liabilities, valued from $2.5 million to $6 million, include mortgages on the Colorado property and his rented personal residence, according to the documents.