After Fed, Bernanke offers his wisdom — for a fee
Published 12:00 am Wednesday, May 21, 2014
On Tuesday, Ben Bernanke spoke in Abu Dhabi; on Wednesday, he was in Johannesburg. By Friday, he was in Houston. That week in March was a particularly busy one for Bernanke, the former chairman of the Federal Reserve.
During his eight years as steward of the world’s largest economy, Bernanke’s salary was about $200,000 a year. Now he makes that in just a few hours speaking to bankers, hedge fund billionaires and leaders of industry. This year alone, he is poised to make millions of dollars from speaking engagements.
Bernanke is following a well-trodden path that his predecessor, Alan Greenspan, and other Washington policymakers have taken. On the speaking circuit, he is putting just one foot through the revolving door between Washington and Wall Street, being paid by financial firms but not employed by one.
Investors are dealing with an economy that is in large part the creature of Fed policies under Bernanke, and they are willing to pay top dollar for his words of wisdom as a result.
Bernanke has agreed to speak with a Middle Eastern bank, private equity firms and trade associations, as well as at investment bank get-togethers, charging his hosts fees that range from $200,000 in the United States to $400,000 for engagements in Asia. While he has dined with hedge fund managers at small events arranged by investment and brokerage firms including JPMorgan Chase, some Wall Street firms have balked at the high fees.
Bernanke also delivers pro bono speeches and does not always pocket all the fees, a spokeswoman for Bernanke at the Brookings Institution said. “In addition, he is donating hundreds of thousands to charity,” she added.