Exactly how would this transaction work?

Rex Tillerson was a former oil executive who was confirmed to be Donald Trump's first Secretary of State.I read somewhere that before taking office,he liquidated all of his business assets and investments in order to avoid any appearance of conflict.Assuming that's true,exactly how does that process work?Where would the money be placed?Would he be unable to access it during his time in office?And when would he be able to reclaim it?

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Northwest · M

Rex Tillerson had $225M worth of Exxon Mobil stock, either directly held or owed by Exon Mobil as part of his decades long contract.

Pursuant to federal laws, he could not continue holding on to these assets directly, but Federal law, allowed him to put these assets, through Exxon Mobil in a blind investment fund (bonds, stocks, etc).

He did not owe taxes on the capital gain (about $75M), instead taxes would be deferred until such time as to when he cashes out funds from the blind trust.

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redredred · M

@DavidT8899 A bank,any bank or even banks would be a hideously risky place to hold $225 million. A better and safer choice would be diversified fund of stocks, bonds, hard assets and some banked holding in a blind trust.

DavidT8899 · 22-25, M

@redredred Ill take your word for it that a blind trust would be the better choice;however,I suspect that a Swiss bank ,many of which safely hold BILLIONS of dollars,would not be a "hideously risky"place to hold $225 million.

redredred · M

@DavidT8899 Banks fail. Know the adage about eggs and a basket? Diversified investments are a lot safer as Swiss accounts don’t pay much interest if any.

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