Fed Chair-to-Be Kevin Warsh Sells Won 2.5 Billion Worth of Coupang Shares

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\r\n[Financial News] Kevin Warsh, who is set to become the next chair of the Federal Reserve (Fed), has begun selling his Coupang shares. The move follows ethics rules that prohibit the head of the Fed from holding individual company stocks.
According to a filing with the United States Securities and Exchange Commission (SEC) on the 16th local time, Warsh disclosed plans to sell 102,363 shares of Coupang Class A common stock that he holds.
The shares involved were Restricted Stock Units (RSU) he received as compensation for his board service at Coupang from August 2021 through June this year. Based on the filing, the market value is about $1.68 million, or roughly 252.3 million won.
The market views the sale as a preemptive cleanup ahead of his Fed chair appointment. Under Fed ethics rules, the chair and governors may not directly hold individual company stocks. The restriction is meant to prevent potential conflicts of interest, given that monetary policy decisions affect the broader financial market.
However, this sale covers only part of his holdings. Warsh is believed to own about 459,000 Coupang shares in total, meaning the planned sale accounts for roughly 22.3% of his stake. He appears to have chosen a staggered sale to limit market impact, and additional disposal filings are expected.
Warsh has served as a Coupang director since October 2019. But after being confirmed by the United States Senate as Fed chair on the 13th, he stepped down from the board. In a filing, Coupang said his resignation was due to his appointment as Fed chair and that it was not related to any disagreement over the company's operations, policies, or practices.
Warsh is known as a figure with experience in both Wall Street and Washington, D.C. He previously served as a Fed governor and also worked at Morgan Stanley. He is also the son-in-law of Ronald Lauder, an heir to the cosmetics company Estée Lauder.
He is also regarded as one of the wealthiest Fed chairs in history. According to a financial disclosure released in April, the couple's jointly held assets are worth at least $200 million.
Observers say the Fed under Warsh may take a more market-friendly stance on future interest rate policy and financial regulation, given his extensive experience on Wall Street.
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km@fnnews.com Kim Kyung-min Reporter