Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee, sent a letter to incoming Federal Reserve Chairman Kevin Warsh about her assets on Friday morning.
“I am writing to request an update on the status of your divestitures, including information on who you sold your assets to and under what terms,” Warren wrote. Warsh must make divestments before taking over as president.
Warren pressed Warsh during her nomination hearing in April about whether she would reveal how she planned to sell her assets. Warsh said he has “worked tirelessly” with the Office of Government Ethics and agreed to sell all of his financial assets if confirmed.
Warsh has significant undisclosed investments in a vehicle called Juggernaut Fund, with two holdings valued at more than $50 million each. The fund is managed by Duquesne Family Office, the personal investment firm of billionaire hedge fund manager Stanley Druckenmiller. Warsh joined Duquesne as an advisor after leaving the Federal Reserve in 2011 and has interests in several other Duquesne funds. Assets held in the funds are not disclosed due to existing confidentiality obligations and have come under scrutiny from Democrats.
Warsh pledged to sell these assets, along with stakes in SpaceX (SPAX.PVT) and Polymarket, to comply with ethical requirements.
Warren is concerned about the transactions. If Druckenmiller or someone else is writing Warsh a $100 million check just before he begins chairing the Federal Reserve, that raises questions about what kind of access the buyer might have to Warsh during his tenure.
Warren previously sent a letter to Druckenmiller on May 5 requesting that he release Warsh from any confidentiality agreement that would prevent him from disclosing more than $100 million in assets. Warren also asked Druckenmiller if he plans to facilitate Warsh’s sale of these assets by withdrawing his investments in these funds.
In her letter on Friday, Warren asked Warsh to provide information by May 29 about whether he divested from the mysterious Juggernaut Fund and other funds, as well as the terms of his divestment.
“Its lack of transparency poses a problem: One or more of its dozens of funds and entities could hold shares in a banned financial institution, and the public would never know,” Warren wrote. “During his confirmation process, I asked him to disclose his assets, as well as asking him if he had tried to free himself from confidentiality agreements that prevented their disclosure. He did not respond in any meaningful way.”
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