Ex-chairman of the Board of Governors of the Federal Reserve System Ben Bernanke took office of senior adviser at Pacific Investment Management Co (PIMCO). The firm management hopes to stop funds outflow caused by the departure of its co-founder Bill Gross, experts believe.
“I am delighted to work together with PIMCO’s strong team of investment professionals and contribute to its investment process in my role as an advisor to the firm,” said Dr. Bernanke.
PIMCO announced that Bernanke “will contribute economic expertise to [the] firm's investment process."
Such changes may cause new rumors about the tight cooperation between the fund and Bernanke when he was still working for the Fed. So the fund could have an advantage in interpreting the regulator’s statements.
However, Bernanke said that he has never met Bill Gross and that he was not going to lobby the Fed or Congress.
In late 2008, the Fed hired four firms, including PIMCO, at the Wall Street to buy mortgage-backed securities. At the same time, the fund managed commercial-paper assets.
“During his recent participation in two of our quarterly economic forums Dr. Bernanke provided significant insights about global macroeconomic issues and monetary policy, and we are confident that our ongoing relationship with him will further enhance our robust investment process,” said Daniel Ivascyn, PIMCO’s Group Chief Investment Officer.
