In preparation for his new White House job, William Daley sold $8.3 million of JPMorgan Chase stock. Thanks to government regulations, Daley can postpone paying the capital gains on that haul until he leaves public life, which, given how fast the door between Obama’s White House and Wall Street spins, shouldn’t be too long.
Daley filed a notice with the Securities and Exchange Commission yesterday on the sale of 186,190 shares of JPMorgan, where he was vice chairman. As Daley divests his holdings to work at the White House, he is eligible to take advantage of a law that allows people forced to sell assets when they accept government jobs to reinvest the proceeds and delay capital gains liability until the new investments are sold.
Daley likely will still face a steep income tax bill this year, said Robert Willens, founder and president of Robert Willens LLC, a consulting firm that advises investors on tax and accounting rules. On Jan. 6, Daley acquired restricted shares and stock appreciation rights for almost 202,000 shares for an average of about $17.23 apiece, according to an SEC filing.