U.S. Senate Committee on Banking, Housing and Urban Affairs Ranking Member Elizabeth Warren presses Druckenmiller to lift confidentiality on Kevin Warsh’s over USD 100 million in assets and explain any fund buyout plans

U.S. Senator Elizabeth Warren, the ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, sent a letter to Stanley Druckenmiller, Chairman and CEO of Duquesne Family Office LLC, asking him to release Kevin Warsh from confidentiality agreements that Warsh says prevent him from disclosing more than USD 100 million in assets. Warren also asked whether Druckenmiller would facilitate Warsh’s divestiture of those investments by cashing out his interests in the funds if Warsh is confirmed as Chairman of the Board of Governors of the Federal Reserve System. The letter argues that the undisclosed assets create an immediate conflict-of-interest concern because one or more of Warsh’s dozens of funds and entities could hold stock in a prohibited financial institution without the Senate, the public, or federal ethics officials being able to verify it. Warren said Warsh’s Office of Government Ethics filing states that he cannot disclose the underlying assets of more than sixty financial entities because of pre-existing confidentiality obligations, many of which appear tied to his roles as an adviser and investor alongside Druckenmiller’s firm. She also raised concerns about who would redeem Warsh’s shares and at what price, and whether those parties could have interests affected by decisions of the next Federal Reserve chair. Warren requested answers from Druckenmiller before the Senate votes on Warsh’s nomination.