Trump's Wealthy Cabinet Picks Will Have to Divest. But the Rules Make That a Potentially Lucrative Prospect
Tax attorney Bob Rizzi was quoted in a CNN Business article highlighting the challenges that new government officials face when divesting from complex financial portfolios as a result of outdated legislation. He pointed out that the divestiture rules, crafted in the aftermath of Watergate scandal, didn't anticipate the modern financial landscape that encompasses private equity funds and a variety of investment alternatives. Mr. Rizzi, who advises clients pursuing positions in the executive branch, added that offloading assets can be especially difficult for individuals whose holdings are illiquid.
"Part of the problem with these divestitures is… that the original legislation was written as a response to Watergate, before private equity funds even existed, and there are lots of financial products or investment alternatives that didn't exist back then," he said.