Janet Yellen made millions speaking to Wall Street banks she will soon be regulating

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The former Federal Reserve Chairman raised nearly $ 1 million in multiple speeches alone Citigroup (C.), according to financial disclosure documents filed last week. Since Yellen stepped down from the Fed in early 2018, he has also delivered paid speeches to other companies, including Google, Goldman Sachs, Bank of America and Salesforce.

It’s common for former government officials, including Fed leaders, to make money by giving speeches that share their insights about the economy and policy. However, the disclosure of Yellen’s lucrative speaker costs is tricky as she could soon be Biden’s steady on economics and finance.

If confirmed as Treasury Secretary, Yellen will have immense power over everything from taxes and climate to tariffs and government spending. Yellen is also said to chair a team of US regulators that respond to new risks in the financial system.

“This announcement ties in with a number of broader democratic concerns about the revolving door and the access that certain financial services firms have to top policy makers,” Isaac Boltansky, director of policy research at Compass Point Research & Trading, said in an email.

Speeches from major banks

The fact that the majority of Yellen’s speaking engagements have come from the financial sector may be a cause for concern that she is too sociable with Wall Street.

Yellen posted $ 952,200 in revenue from speeches for Citi, one of the country’s largest banks. She also announced PIMCO’s speaking 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 relationships with major banks and corporations.

During the 2016 campaign, then-candidate Donald Trump criticized his opponent, former Secretary of State Hillary Clinton, for making millions of speeches to banks, securities firms and trade associations. The transcripts of some of those speeches have been released by WikiLeaks.
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Biden’s transition team downplayed concerns about Yellen’s Wall Street earnings, noting that some of the speeches were moderated or covered by journalists.

“Take a look at her track record on enforcement – this is not one to take blows when it comes to bad actors or bad behavior,” a Biden transition official told CNN Business.

Yellen appealed in part to some progressives for her crackdown Wells Fargo (WFC). In February 2018, the Yellen-led Fed imposed unprecedented growth restrictions on Wells Fargo, sanctions from which the scandal-ridden bank has yet to recover.

“She did not hesitate to tell audiences that the rules for their company should be tougher and tougher – otherwise it could cause problems for the economy,” said Biden’s transition official.

Avoid conflicts of interest

Transcripts of Yellen’s speeches to Wall Street banks have not been made public, however. And Biden’s transition official didn’t immediately provide specific examples of Yellen telling companies that the rules may need to be tightened.

In a recent letter to ethics officials, Yellen pledged to take steps to “avoid actual or apparent conflicts of interest” if it is confirmed that she heads the Treasury Department.
In particular, Yellen promised to sell its interests in several major companies no later than 90 days after confirmation Pfizer (PFE), Raytheon (RTN), DuPont (DD), ConocoPhillips (COP) and CNN parent 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 a year after her last speech, she plans to withdraw from affairs related to various companies, including Sales team (CRM), Principal Financial and Japanese investment bank Daiwa Securities. Yellen said she “will not personally or substantially participate in any matter” unless she is authorized to do so.
However, Yellen also indicated that she will request written permission to participate in matters related to other companies for which she has earned speaking fees, including Barclays, Citi (C.), Citadel, Credit Suisse and Goldman Sachs (GS).

Confirmation not in doubt

Analysts said the revelations are unlikely to derail Yellen’s confirmation by the US Senate.

“Yellen will be questioned about these speeches during the confirmation process, but it is hard to imagine that this disclosure would affect her chances of becoming Secretary of the Treasury,” Boltansky said. “The fact is, she’s done absolutely nothing wrong and she’ll still be cruising for confirmation.”

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

Other former Fed officials have similarly pulled in lucrative speaking fees after leaving the US central bank. For example, Ben Bernanke, who led the Fed through the 2008 financial crisis, once made a whopping $ 250,000 per speech. In 2015, Bernanke was hired as a senior advisor to the hedge fund company Citadel, headquartered in Chicago, a role he continues today.
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Biden’s nomination of Yellen has received broad support, including from 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 US policy strategist at AGF Investments, doubts the speaking costs will prevent Yellen from becoming the first woman to run the US Treasury Department.

“She has such a reservoir of goodwill on Capitol Hill that she will be easily confirmed,” Valliere said.

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