Reporting by Terje Solsvik - 14 Aug 2020
Pressure grows on Norway's new wealth fund chief to divest hedge fund stake
OSLO (Reuters) - The businessman appointed to lead Norway’s $1.1 trillion (839.4 billion pounds) sovereign fund should not be allowed to take up the job unless he divests his holdings in a hedge fund, the opposition Labour Party told daily VG and broadcaster NRK on Friday.FILE PHOTO: Nicolai Tangen speaks during a press conference on his employment contract as he has been appointed new general manager of Norges Bank Investment Management May 28, 2020. NTB Scanpix/Hakon Mosvold Larsen
Norges Bank in March announced that Nicolai Tangen would take over the running of Norway’s rainy-day assets from September, while putting his own 43% stake in London-based AKO Capital into a blind trust. Tangen has ruled out selling his AKO stake.
“We’ve concluded that the risks of conflict of interest are too great to be compatible with taking up that position,” Labour leader Jonas Gahr Stoere told NRK.
Labour is the largest opposition party in Norway and the narrow favourite to win elections next year.
The central bank was not immediately available for comment.
The appointment was the subject of a contentious hearing in parliament on Monday, in which Norges Bank’s supervisory council, a watchdog appointed by parliament, sharply criticised the appointment, while central bank Governor Oeystein Olsen defended it.
Labour’s criticism puts significant pressure on the centre-right minority government, although its formal powers to directly intervene in the hiring process are limited.
Julie Brodtkorb, who heads the council overseeing the central bank, on Monday told parliament that there had been “a breach of guidelines, regulations and laws” during the hiring process.
Norges Bank has admitted to being too slow in releasing Tangen’s name as part of a public list of applicants for the job to head Norges Bank Investment Management (NBIM), which is mandated by law.
Defending the appointment however, Olsen said Tangen is now only a passive investor in AKO and that any potential conflicts of interest had been “eliminated for all practical purposes”.
The sovereign wealth fund, the world’s largest, owns about 1.5% of all listed global equities and is worth three times Norway’s annual gross domestic product, making its investment returns vital to the country’s public finances.
Tangen’s surprise appointment thrust the 54-year-old, whose private wealth is estimated at more than $500 million, into the limelight in Norway.
Reporting by Terje Solsvik, editing by Gwladys Fouche and Steve Orlofsky
Our Standards:The Thomson Reuters Trust Principles.
The bottom line is for the people to regain their original, moral principles, which have intentionally been watered out over the past generations by our press, TV, and other media owned by the Illuminati/Bilderberger Group, corrupting our morals by making misbehavior acceptable to our society. Only in this way shall we conquer this oncoming wave of evil.
All articles contained in Human-Synthesis are freely available and collected from the Internet. The interpretation of the contents is left to the readers and do not necessarily represent the views of the Administrator. Disclaimer: The contents of this article are of sole responsibility of the author(s). Human-Synthesis will not be responsible for any inaccurate or incorrect statement in this article. Human-Synthesis grants permission to cross-post original Human-Synthesis articles on community internet sites as long as the text & title are not modified.
The source and the author's copyright must be displayed. For publication of Human-Synthesis articles in print or other forms including commercial internet sites. Human-Synthesis contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the copyright owner.