Ben Bernanke is cashing in his government chops.
The former chair of the Federal Reserve is joining Pimco as a senior adviser, the firm announced in a press release. It’s the second advising role Bernanke has taken in two weeks. He is also an adviser to the hedge fund Citadel, in addition to his role at the Brookings Institution as a distinguished fellow in residence.
Bernanke is a big get for Pimco, the California wealth management firm, that is still reeling from the departure of it stud founder Bill Gross in September. Investors have been pulling their money from Pimco since the “bond king,” left — Morgan Stanley estimated the firm stands to lose a total of $400 billion.
Bernanke has been careful about picking his new roles to avoid any perception of a “revolving door,” between Wall Street and the central bank.
“I wanted to avoid the appearance of a conflict of interest,” Bernanke told The New York Times about the Citadel, which he chose because it is not regulated by the Fed.
Pimco didn’t say how much it is paying Bernanke.
But he will likely make more this year than the $199,000 a year he made as Fed chief.
Bernanke already pulls in over $200,000 for each speech. He has three gigs and a book coming in the fall.
Even if Bernanke will be jumping the tax brackets this year, don’t expect him to go on an expensive shopping spree. The man says he’s been happy in his Jos. A Bank suits.
Related: Wall Street bombshell: Bill Gross out at Pimco