Chelsea Clinton once worked for the type of shadow bank her mother, Hillary Clinton, is now railing against on the presidential campaign trail.
Chelsea Clinton in 2006 joined Avenue Capital Group, a $12 billion hedge fund whose founder has contributed to many Democratic Party campaigns. She has since left the firm, Erika Gudmundson, a spokesman for the Clintons confirmed.
The hedge fund was co-founded by Marc Lasry, who is well-known in Democratic circles, having contributed to the campaigns of Mrs. Clinton, Al Gore, Bill Bradley, John F. Kerry and others. Chelsea Clinton is now on the campaign trail for her mother.
Hillary Clinton has come under attack by Democratic primary rival Bernard Sanders for collecting campaign contributions from the Wall Street banking industry and its players and for receiving $475,000 to give private speeches to Goldman Sachs. Mrs. Clinton has refused to disclose the transcripts of those speeches.
Mrs. Clinton has made reining in hedge funds a focus of her campaign, frequently sparing with Mr. Sanders on how they should be regulated. Mrs. Clinton’s team has been critical of Mr. Sanders’ Wall Street proposals, saying they don’t go far enough to address the world of shadow banking, otherwise known as hedge funds, or any other institution that takes in trillions of dollars in assets from customers and then lends out much of it.
Mrs. Clinton even suggested this industry could lead to the next financial crisis.
“There were a lot of bad actors” behind the 2008 financial crisis, Mrs. Clinton said at a Feb. 3 town hall meeting New Hampshire, “and if all you do is look over here, I’m telling you, they’re going to be over there in the shadow banking sector just cooking up all kinds of ways to once again put our economy at risk.”
Chelsea Clinton is no stranger to Wall Street. Her husband, Marc Mevinsky is co-founder of the hedge fund Eaglevale Partners. In December, a conservative watchdog group called for an investigation into the former secretary of state’s communications, claiming while Mrs. Clinton served in that position, she gave special government access to one of Mr. Mevinsky’s Wall Street friends.