Ethical Standoff: Treasury Secretary Bessent Faces Divestment Delays

U.S. Treasury Secretary Scott Bessent has not divested certain assets as required by ethics rules, prompting concerns over potential conflicts of interest. Despite modifications to his ethics agreement, key assets remain undivested. Bessent is committed to meeting deadlines, but challenges persist due to asset illiquidity and market restrictions.

U.S. Treasury Secretary Scott Bessent is under scrutiny for failing to divest certain assets, as mandated by government ethics rules, raising concerns about potential conflicts of interest in his policymaking. The Office of Government Ethics (OGE) highlighted these issues in a correspondence with Senate Finance Committee Chair Mike Crapo.

In a letter dated Monday, OGE Deputy Compliance Director Dale Christopher noted Bessent's non-compliance with the ethics agreement he signed at the beginning of his tenure in January. Despite amending the agreement in May and June, further amendments are needed, while Bessent faces pressure to finalize asset divestitures by December 15.

Bessent, central to President Donald Trump's economic policies, has been tasked with divesting assets, including the Key Square Group hedge fund and North Dakota farmland, which have presented challenges due to their illiquid nature and acquisition restrictions. The Treasury's ethics office continues to set up screening procedures to prevent conflicting interests.

(With inputs from agencies.)