Thursday, October 06, 2016

Conflicts Of Interes

Fed Governor Lael Brainard has donated to Clinton’s campaign and is widely viewed as a potential Clinton pick for Treasury secretary. Yellen hesitated and then demurred when Representative Scott Garrett of New Jersey asked whether Brainard would have a conflict of interest if she were indeed in talks with Democratic nominee Hillary Clinton’s campaign about a position. The election takes place Nov. 8.

“I would have to consult my counsel, I’m not aware that that’s a conflict,” Yellen said in testimony to the House Financial Services Committee in Washington, while rejecting Garrett’s suggestion that the U.S. central bank has a political bias.

Source: Fed Politics in Spotlight as Yellen Cornered by Lawmaker | Bloomberg

Imagine how higher management would feel about you reacting in the same situation. Goldman has been known to lay off its employees for even donating to the Trump campaign. So a similar situation would be you, an employee of a firm, donating to a political campaign, and later getting a promotion as a result of that donation.

Of course, Lael Brainard herself has a long history of working in the executive branch to begin with. She initially served in Bill Clinton’s administration, and was appointed Undersecretary of the Treasury for International Affairs early in Barack Obama’s presidency. In 2014, she was nominated to the Federal Reserve Board of Governers, and it appears the majority of “conflicts of interest” and connections with her past employers were largely ignored during her confirmation.


1 comment:

Anonymous said...

One of those appointments that can be filled by someone smart enough to write their name in cursive.