The man who once dared to suggest to his colleagues at the Fed that waiting until there’s “decisive proof” of a bubble might be a bad policy because by then it will be too late to fix things resulting in “an implicit policy of inaction,” and who subsequently resigned from his position amongst one group of PhDs to return to work with another, is taking his talents to BlueMountain Capital where he’ll advise Andrew Feldstein (the man who once harpooned a certain British whale) on how inept the government is when it comes to regulating the industry, among other fun topics. Here’s more via WSJ: Jeremy Stein signed up as a paid consultant to BlueMountain Capital Management, the more than $20 billion New York hedge-fund firm, the firm confirmed. Mr. Stein, 54, made a quick impact in his two years as a Fed governor, warning of potential asset bubbles from the central banks’ sustained post-crisis stimulus programs. That set him apart from his colleagues who felt that financial stability concerns were far from the top priority in a sluggish economic environment. He resigned in May 2014. More recently, he has said he is bullish on the U.S. economy, and relatively unsure on whether the Fed will raise rates in June. At BlueMountain, Mr. Stein will advise on macro policies, financial regulation and risk management, among other issues. And here’s the PR from BlueMountain: BlueMountain Capital Management, LLC ("BlueMountain"), a private investment firm with over $20 billion in assets under management, is pleased to announce it has entered into a consulting agreement with Harvard economics professor Jeremy C. Stein, who was a member of the Board of Governors of the Federal Reserve System from May 2012 to May 2014. Professor Stein will advise BlueMountain on a range of issues, including implications of monetary and macroprudential policies, financial regulation and market evolution, and risk and capital management. "We're very lucky to have the opportunity to work with Jeremy," said Andrew Feldstein, CEO of BlueMountain. "He has been widely recognized by leaders in government, academia and the private sector for his talent and impact. His experience, research interests, and intellect will add real value to BlueMountain's investors.”… "I'm excited to be working with the BlueMountain team," said Professor Stein. "They are at the cutting edge with respect to the development of both investment strategies and risk management tools, and I look forward to learning much more about the markets from my collaboration with them." *** When Stein resigned his Fed post, he noted in his resignation letter to the President that “working alongside… selfless men and women” had been a rewarding experience. We imagine he’ll have a similar experience working with the many “selfless” individuals in the hedge fund industry.