This page has been archived and commenting is disabled.
Ben Bernanke To Join World's Most Levered Hedge Fund: HFT Powerhouse Citadel
Several years ago, Zero Hedge first, and to our knowledge only, reported that when it comes to unofficially executing trades in the equity market the NY Fed - through a slightly more than arms-length arrangement - does so using Chicago HFT powerhouse Citadel. In other words, while Citadel was instrumental in preserving the smooth, diagonal ramp in stocks since 2009 and igniting upward momentum just as everyone else stared to sell when the Markets Group of the NY Fed called, it was also paid handsomely: after all, nobody checks the Fed's broker commission statement. In fact according to some, indirect Fed compensation to what is the world's most leveraged hedge fund has been in the billions over the past decade.
Well, now it's payback time, and as the NYT reported overnight, the Brookings Institution's favorite blogger, former Fed Chairman Ben Bernanke, has joined none other than Citadel as an advisor.
According to the NYT, "while Mr. Bernanke will remain a full-time fellow at the Brookings Institution, the new role represents his first somewhat regular job in the private sector since stepping down as Fed chairman in January 2014. His role at Citadel was negotiated by Robert Barnett, the Washington superlawyer who also negotiated a deal for his book, “The Courage to Act,” which Mr. Bernanke recently submitted to his editor and will be published in October."
Mr. Bernanke will become a senior adviser to the Citadel Investment Group, the $25 billion hedge fund founded by the billionaire Kenneth C. Griffin. He will offer his analysis of global economic and financial issues to Citadel’s investment committees. He will also meet with Citadel’s investors around the globe.
It is the latest and most prominent move by a Washington insider through the revolving door into the financial industry. Investors are increasingly looking for guidance on how to navigate an uncertain economic environment in the aftermath of the financial crisis and are willing to pay top dollar to former officials like Mr. Bernanke.
Mr. Bernanke joins a long parade of colleagues and peers to Wall Street and investment firms. After stepping down, Mr. Bernanke’s predecessor, Alan Greenspan, was recruited as a consultant for Deutsche Bank, the bond investment firm Pacific Investment Management Company and the hedge fund Paulson & Company.
There is one difference: while Greenspan was brought on to share his wrong macro opinions with entities that at least had macro exposure on paper, all Citadel does is HFT after repeated, failed attempts to engage in various other investment banking verticals. That, and of course massively frontrunning retail orderflow. As such, with Bernanke's move one can finally see the unholy nexus of central banks and HFT algos in precisely the light we have described it since 2009: central banks manipulating markets from the top, HFTs manipulating markets from the bottom.
Oh, and did we mention Citadel is the world's most levered hedge fund on a regulatory basis? That's because it is.
In any event, it's payday for Ben, who must have quickly realized there isn't much money to be made in blogging.
While Mr. Bernanke declined to disclose his compensation, he said he would be paid an annual fee but would not own a stake in the firm or receive a bonus based on its performance. His arrangement with Citadel is not exclusive, so he could take on other consulting roles. Mr. Bernanke said that he could not determine exactly how much time he expected to devote to Citadel.
He added that he did not consider himself an investor; he plans to offer Citadel his perspective on monetary issues and other matters of public policy that Citadel will use as “inputs” into its investment decisions.
“I was looking for an opportunity to use my skills and knowledge,” he said. “This is an interesting firm.”
In a statement, Mr. Griffin said: “We are honored to welcome Dr. Bernanke to Citadel. He has extraordinary knowledge of the global economy and his insights on monetary policy and the capital markets will be extremely valuable to our team and to our investors.”
To summarize: a day after the NY Fed itself revealed it is opening a "back-up" trading floor in Chicago ("in case of a disaster or other eventuality") to be closer to the HFTs, Ben Bernanke himself is joining the most prominent HFT there is (also in Chicago). Just in case there was still any doubt who runs the "markets."
»
- 31274 reads
- Printer-friendly version
- Send to friend
- advertisements -
Gang banging
What a POS!
Truly disgusting. This open corruption. Almost mafia like and no one can do anything about it because everyone from the President down is involved.
Basically, EVERY US Politician Supports This...
Vampire Squid Expands Its Tentacles.
Corrupt bastards.
"Every effort has been made by the Federal Reserve Board to conceal its power. But the truth is, the Federal Reserve Board has usurped the government of the United States.
It controls everything here; and it controls our foreign relations. It makes or breaks governments at will.
No man, and no body of men, is more entrenched in power than the arrogant credit monopoly which operates the Federal Reserve Board and the Federal Reserve Banks.
These evildoers have robbed this country of more than enough money to pay the national debt. ... Faithless government officers who have violated their oaths of office should be impeached and brought to trial."
-- Congressman Louis T. McFadden before the House of Representatives, in the midst of the Great Depression, 1932.
Here's another Fun Facts from almost twenty years before:
"This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson] signs this bill, the invisible government of the monetary power will be legalized....the worst legislative crime of the ages is perpetrated by this banking and currency bill."
"From now on, depressions will be scientifically created."
-- Congressman Charles A. Lindbergh Sr. , 1913 (Yes, the aviator's father)
It can't be true - not on CNBC..........
Pisses down America's back, and then sells it umbrellas.
Where's Ms. Witt when you need her but.......with a gun.
why get a girl, can't an american handle this job ?
Payday!!!
Crime pays.
Ben hopes to go pro in the next CFR draft.
i can see bennys mother now...dropping benny off for his first day of work ever....benny in is wearing his new wing tips andhis brown bag with a banan for a snack.....
And she spits on a tissue to wipe the breakfast off of his face, while trying to comb his long gone hair.
You don't even have the balls to stand up to your wife when she tells you to take out the trash, Bob - and you're complaining that no one is willing to stand up to Mr. Bernanke?
well, he created the leverage, so I guess he should get to be the alpha pig.
Ben saved the modern world from total destruction and he did it during America's darkest hour. For that we will be eternally grateful.
"we" as in the hasbara patrol.
Ben should hit the ground running.
Many would prefer that he just hit the ground. Or spend an extended period of time under it...
Rifle + Scope = Hours of Fun
Fascism circle jerk on parade.
Move on....nothing to see....nothing can be done sbout it.
< Incest.
< Tradition?.....after all Greenspan joined Paulson in 2008, post his retirement. Volcker joined Wolfensohn in 1987 post retirement...
I guess there are still some muppets who believe a firm like Citadel would pay to hear anything Bernanke has to say. Unfortunately, the fact is he has already done everything for Citadel that he will ever do. That's the way the system works. Offers more of a veneer of legality than, say, a suitcase full of money. Same is true for the $250k speeches.
I don't recall them printing $4 Trillion
One more time. "Money is like incest, its best kept in the family".
What a surprise! Revolving doors in the financial mafia sector? No way!
How fitting when the man who votes time and time again to debase the currency and lever up joins the highest leveraged hedge fund and the revolving door keeps turning.
HFT -- High Frequency Treason
Impressive resume there Ben, academic indoctrinator, economic charlatan, Master Government Printer, Brookings Institute blogger and now hedge fund facilitator, um "advisor" to the uber-wealthy.
Welp, time to feed my unicorn.
"Welp, time to feed my unicorn."
some Russian humor to help with that horse .. Sberbank has approved me a card with individual design ;-)
http://funon.cc/show/sberbank-odobril-mne-kartu-s-individualnym-dizaynom...
:-)
Completely disingenuous, Bob.
If it wasn't for Ben Bernanke, you wouldn't even have a job right now.
Well, I don't know who the fuck Bob is but Bernanke has got jack-shit to do with my job. I've done multiple "jobs" in my life, he only one, devaluing everyone elses labor paid in fiat.
Hes a freaking crackpot / fraud lol guy has no idea what hes doing/was doing, then again not like you need to know what you are doing when you can just hit print.
So am I... Why don't they give me a job there as advisor?
Because you werent born into a connected bloodline full of inbred psychopaths.
or
You didn't kiss enough ass in college.
Your envy and anti-Semitism are palpable, Bob.
Gotta manage that leverage. Citadeal cannot do that without insider info and front running. Just not possible.
He will be "advising " Citadel where to direct-deposit his substantial weekly checks.
he was already advising them....now he is just getting paid!
HFT - High Frequency Training
High Frequency Tossing (and at Citadel, that includes in each others mouths - otherwise Ben wouldn't accept the job)
Former Fed governers should be exiled to say...Guam. This makes my f*cking blood boil.
Almost finished reading "Flash Boys." Really makes you understand just how sick these HFT firms are. Highly reccomend it.
Read "Broken Markets" too. A somehwat more academic approach.
Will check it out
"The courage to Act"! That is certainly laying it on thick.
Sorry Ben, what courage did it take when the only stakeholders which mattered to your position (Wall Street bankers and other hangers on) were singing praise for each liquidity injection.
How about the courage not to act. Or the courage of intellectual honesty. Or the courage to stop kissing wall streets ass. Oh I see now, you didnt want to hurt your job opportunities when you retired.
Lets dream for the day when these jokers face some true accountability.
If the FOMC hadn't taken the actions it did when it did, you complainers wouldn't even have a job!
Thanks for the laugh
or come here and use your intutitive skills to pull it all together.
then conclude: insider crony cartel of money creaters with first skim off trillions.
that skim is not chump change
get your billions...
ha
Citadel are hiring a rocket scientist par excellence. With Bernanke's theoretical knowledge, financial acumen and psychic ability to forecast economic meltdowns he is the MAN to advise the "Most Levered Hedge Fund" in the world. After the Mad Hatter's tea party, Bernanke and Alice smoked a hooker, went tripping on magic mushrooms and lived happily ever after screwing Amerika. The End
qualified to run the fed but not citadel - lulz
Bernanke is there for one reason.
CITADEL wants to know FIRST when something happens with the Fed. He is probably still advising Yellen. So Citadel has an insider...paid in full.
HTF does a fund like Citadel become the working arm of the Fed?
Insider trading? This is an outrage....
The Bernake is just doing what they all do, getting his payoff/graft from the insiders club. The big players all have a direct line to the un-feds head.
The only difference today as opposed to years ago, is that they do it in the wide open. It's the fuck-you we do what the hell we want attitude, they all have. They are free to rape the system anyway they see fit.
They have all of the 535 in their back pocket, so if they want a new law or one changed that's just a simple phone call!
why does this bring to mind hank paulson? the guy who told congress :" you will give me the money, you will ask me no questions about what i do with it. you will give me total immunity from current and future law, and you will do it now." he got paid and no one said dick. ben could learn a thing or two from hank, but then hank actually ran GS. ben was just a water boy for wall st..as go fer.
Ben Bernanke is a crook. Citadel is very unhealthy investment firm. They have a lot of risky bets in this market.
For them to hire the Bernank shows how foolish they are.
desperate... there, fixed it.
the irony will be apparent when this ponzzi starts to unwind, oh wait, thats why he is an adviser.
an expert from his studies of the great depression. beyond fucking disgusting warmed over puke with shit as frosting...
Just as obama was elected through Chicago money, so too will Hillary.
Maybe now he can pay off his mortgage !
When the time comes, and it will come -- it's inevitable, in a collapse the rules change irrevocably.... and you are staring at these motherfuckers down the barrel of your gun then keep exactly this sort of bullshit at the forefront of your mind. It will remind you that these people are corrupt to the core and are beyond saving. They deserve no mercy and no kindness.
Pull the trigger and grab a drink. Then toast a job well done.
When they come for our Arms, that will be the time to use them.
Tyler, the link you posted on the backup trading in Chicago is broken.
Bernanke is trying to write history in his favor. It will fail.
BERNANKE SET THE GROUNDWORK FOR A MASSIVE ECONOMIC COLLAPSE.... THAT WILL BE HIS LEGACY !!!!!
Greenspan blew the first bubble.
Match made in heaven. An over-levered hedge fund being advised by the asshole who bankrupted our country with debt.
This makes me sick. If there were any doubts that the fix was in, they should now be dispelled.
Amazing how scum congregates.
Scum rises to the top. Then someone scrapes it away.
I think we're close to the scraping moment.
Then they take the scum and make biodiesel from it.
guess he'll be able to refinance his mortgage now.
Are you really leveraged if you have access to unlimited printing? Inquiring minds want to know. Nothing more than a financial ponzi bailed out by the taxpayers again and again and. . again and.. . again.
It's partially my fault, I recommended he go talk to Goldman.
Citadel was only supposed to be a 'just in case' fall back plan.
It is disappointing , but he has to learn failure before he can succeed.
Aye, go on, give her a goose Ben, no one's watching...
So first the PPT is abandoning NYC for Chicago. Now Burntwankie is following suit. Hmmm.. Escape from NY time folk?
There is no escape, only tempory refuge.
http://www.southerncaliforniabankruptcylawblog.com/2014/10/04/will-the-c...
http://www.newsmax.com/US/cities-bankruptcy-after-detroit/2013/08/06/id/...
http://www.fourwinds10.net/siterun_data/government/war/news.php?q=131956...
They should have shut detroit down 50 years ago for "plumbing problems".
He deserves the death penalty from Utah
Now we are talking. Fed Res "put" bellweather.
"It's a big club, and you aint in it."
this must mean the hedge fund now has access to the fed's window.
Maybe now he'll qualify for that re-fi on his mortgage.
What he'll actually do isn't clear. By his own admission he won't have a stake in the firm. When they need a favour from Old Yellen or Dudley maybe he's the one who'll make the calls.
is this nut going to nut house or nut house is accepting king of nuts
As no other has said it yet: FUCK YOU Bernanke.
Look at Cameron, he is in boat with Ben, ROFL
http://acidcow.com/pics/69712-david-cameron-had-a-huge-turnout-at-his-el...
I know who I'm rooting for to be the next LTCM
Commit treason--->get book deal--->recieve payoffs in the form of advisory jobs and speaking engagements
I was talking about Billary.
You thought I meant Benny?
Bernanke, rather than helping his son with medical school he told to put everything onto a loan.
Bernanke's son has a $400,000 + school loan.
Bernanke knows the US dollar is going to get destroyed.
Good move on Citadels part. Who else bur the Bernank could possibly have the level of economic education and vision to advise on econmic trends and forecast where the economy is going? I think as an advisor he will be invaluable.
http://youtu.be/INmqvibv4UU
I'm sure ZH uses smug photos of this dipstick to deliberately agravate it's readers. Someone needs to wipe that god awful smile off his face.
i have never seen such dirty dealings in my life
That's because you weren't alive in the 20's in Weimar Germany.
Well, there went breakfast. Can't think of a bigger portent of more of the same... remember what he said, no interest rate normalization during his lifetime. #payoff #quidproquo
He'll be starting on his strategies working around this from The Fed;
http://www.cnbc.com/id/102591411
Everything about this Federal Reserve group goes against what is right and ethical. This needs to stoped and they need to be out of the money manipualtion business. This is the first step to taking back America step 2 is to remove Obama and try him for treason to send a loud and clear message to the Clintons and Bush families that we are back in control of their war machine. Vote anyone but Bush or Clinton and anyone but the establishment including McCain and his fellow war monger Linsdsay Gram, we need this group that ruined America out.
Citadel who only survived the crisis due to FED bailouts.
ZH is being monitored and censored in realtime. Its for your own good...
Why do I get the feeling we're about to be debuted on MSNBC?
Most US policymakers believe that capital comes from debt issued by the Fed and its member banks; most other big debtor countries agree (i.e. Japan). On the other hand, policymakers of the world’s biggest creditor nations (led by China) believe that real capital is the surplus produced from production and trade (which has been mainly accumulated in US dollars and ultimately backs the US dollar as the primary reserve currency).
http://homment.com/petrodoll2
Does he have any programming experience? Because I don't really need an economic adviser for an algorithm. Just saying.
WANTED: Experienced career criminal to act as Lead Lobbyist for trading firm specializing in High Frequency Fraud. Salary commensurate with experience. "Outsiders" need not apply.
Wow, I thought it was bad enough that he spoke out of both sides of his mouth ("We have to raise asset prices, so we are dropping rates to zero...uh, we don't watch or affect asset prices, what you talkin bout Willis?")
$300,000 a pop speeches and self-aggrandizing book deals was one thing, but is Mr. Corrupt is now joining forces with the guys he bailed out at the expense of the everday saver and worker? Nice.
I need to call that lovely Jospephine Witt.
As I've said before folks...just remember who did/said what when it all comes apart. It should read like Jefferson's litany of crimes and indignations in our original Declaration.
Then, hold them fully accountable.
Gut the Congress to elect real leadership to first fully audit the Fed, and then to repeal its legal right to exist.
Proceed to amend the Constitution to ensure there can't ever be another American central bank (or anything like it) created again.
Finally, heavily re-regulate Wall Street and criminalize much of the current "racketizing" activity.
It makes no sense to endure what is coming if we aren't willing to take the profound action necessary to restore the things that are right about us, and to also properly and permanently discharge what is not.
If ordinary citizens do not rise to take charge of their own home, their sufferings will have been in vain.
m
"Several years ago, Zero Hedge first, and to our knowledge only".
Those people behind ZH are probably the industry insiders, that set up this ZH site to sway a particular group of investors/traders towards a particular intended direction/sentiment.
How many people that anyone know of, that actually have such level of information that the people behind ZH have, especially like Tyler Durden?
I bet even a senior quant/researcher/analyst does not have the level and scope of knowledge that the people behind ZH have, especially on such a timely manner.
Only an industry insider that is also intimate with the powers-that-be would have such knowledge and information access.
And I bet the reason why ZH was set up was to sway the sentiment of a particular group of investors/traders that seek to be informed would stumble upon ZH and be swayed.
Tyler Durden has been calling "Fire!" (or market top) for years already, and keep overlaying charts of previous market collapse to current progression of the stock market, implying there will be a market collapse around the corner, BUT NEVER HAPPENED.
Why? Is it because Tyler Durden wants to shape the sentiment of the readers so that they may SELL while the powers-that-be may BUY, thus another reason why we still don't see a market collapse?
I wouldn't be surprised if Tyler Durden is revealed as an insider.
In fact I would like to claim that I am the FIRST AND ONLY person to know Tyler Durden is an industry insider working with the powers-that-be that Tyler keep criticizing, to sway the sentiment of the ZH readers.
Hey Tyler, got a link on that bold accusation you made in your first sentence? I mean, this is your site after all.
"I totally have a girlfriend, but she lives in Canada.." Right, TD?
An the revolving door [btw govt & corp] continues to spin.
First in line for the guillotine? Or are there others more worthy?
There are many more worthy. Bernanke is just a useful stooge. First in line should be Lloyd or Jamie. Lloyd is obviously the smarter of the two, so maybe he should be first. I say Lloyd is smarter due to the fact that he pretty quicky learned to shut his big fat mouth after putting his foot in it a few times. Jamie on the other hand........
There is no rule of law left in the United States.
Personal integrity is as obsolete as the rotary dial telephone.
Those who go furthest in breaking the law are the most rewarded.
How this all ends I don't know, but that German lady jumping on Draghi yesterday may be a sign of what lies ahead.
Job Requirement: "Must be willing to throw Senior's under the bus on a dialy basis".
As 'hyperbolic' as it may sound, we are witnessing - in real time, the end of America. At least the end of an America as those who grew up in the 50's, 60's, 70's, 80's, and even part of the 90's, knew it. Sometimes difficult to discern when the 'live event' is taking place right in front of you, as opposed to observing the events in retrospect. Nonetheless, it is taking place - and at breakneck speed.
Will he do an LTCM or a Paulson?
If you want to know who really pulls the strings, find out who Ken Griffin fronts for.
I don't know, and don't want to know. I don't own a nail-gun, neither.
As been said before, "Behind every great fortune lies a great crime."
We can be sure he wasn't hired for his prescience or market acumen.