President-elect Donald Trump has selected Scott Bessent as his nominee for Treasury Secretary, a move announced on November 23. To assume this pivotal role as the top U.S. economic policymaker, Bessent intends to undertake significant changes to avoid conflicts of interest. He plans to resign from his position at the Bessent-Freeman Family Foundation and shutter Key Square Capital Management, the investment firm he founded. The New York Times first reported details regarding the closure of this firm.
Bessent will divest his interests in the Key Square Group hedge fund and other investment ventures. In preparation for his potential new role, he plans to hand over the daily management of a substantial real estate, hotel, golf, media, and licensing portfolio to his children. This transition will ensure that Bessent can focus on his responsibilities at the White House. Reuters reported last month that the fate of Key Square could include being wound down, sold, or placed in "sleep mode" if Bessent joined the Trump administration.
The U.S. Senate Finance Committee has scheduled a nomination hearing for Bessent on January 16, providing a platform for further scrutiny of his qualifications and plans. In a letter to the Treasury Department's ethics office, Bessent outlined the steps he would take to divest his interests.
"Avoid any actual or apparent conflict of interest in the event that I am confirmed for the position of Secretary of the Department of Treasury," Bessent stated in his letter.
A spokesperson for Bessent declined to comment further on these developments. As a seasoned money manager and founder of Key Square Capital Management, Bessent's financial acumen is well-established.
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