A Treasury official coordinating the government’s hedge fund inquiry is due about $2.5 million in part from his own investments in hedge funds, but no need to worry about any ethical issues. Emil Henry Jr. left New York-based Gleacher Partners last year to join the government as assistant secretary for financial institutions at Treasury, and according to his severance agreement, he is set to receive 20% of profits generated by a Gleacher unit that specializes in hedge funds, Bloomberg News reports. While the government OK’d Henry as head of the HF inquiry, some observers say his presence has the appearance of a conflict of interest, especially since Treasury’s activities are not open to public inspection. For his part, Henry has agreed not to participate in any hedge fund decision making until the completion of the Gleacher payouts. Bloomberg News says Henry did preside over the first of many meetings Treasury plans, meetings that are closed to the public so that hedge funds can talk freely, but he is not expected to attend any more until he receives all his HF money.
