Ex-Treasury Chiefs Land At Hedge Funds

Oct 20 2006 | 12:00am ET

Two former heads of the U.S. Treasury Department, which is currently studying possible hedge fund regulations, have joined New York-based hedge funds.

John Snow, who served as President George W. Bush’s Treasury secretary until February, will join $16.5 billion fund Cerberus Capital Management as chairman, and his predecessor, former Harvard University president and Treasury chief under President Bill Clinton Lawrence Summers, has agreed to serve as a part-time managing director of $25 billion D.E. Shaw & Co.

“It’s an honor to have a person of Secretary Snow’s stature join the Cerberus team,” the firm’s CEO, Stephen Feinberg, said. “We will benefit enormously from his vast experience in business operations as well as his keen insights to economic trends and forces.”

For its part, D.E. Shaw said the Summer, who remains on the Harvard faculty, will work on “strategic initiatives” and “high-level portfolio management activities.”

Neither firm disclosed how much the ex-Treasury chief will make in their new jobs.

The hires now put the last three former Treasury secretaries in high-level posts with alternative investment firms. Paul O’Neill, who served in the post in between Summers and Snow, is an advisor to private equity firm The Blackstone Group.


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...