James Biden leaves UK energy company after White House review

James, brother of President Joe Biden, has abandoned a clean energy project in the UK following a White House review of possible conflicts of interest.

James Biden set up an investment vehicle in May, with a UK corporate lawyer and two Argentine businessmen. But he abandoned the plan a few weeks later after a White House assessment under strict new rules introduced by the Joe Biden administration. The company is now inactive.

James Biden and his wife, Sara Jones Biden, launched 2BT, a UK limited liability company, with Reed Smith partner Peter Teare. 2BT established another vehicle, Shelbourne Partners, which aimed to “explore possible investment opportunities, especially in the clean energy sector,” according to Teare.

Weeks after the Shelbourne launch and after a review in the White House of James Biden’s plans, Teare said the group had abandoned the project.

The White House adviser’s office review on James Biden’s planned business in the UK is part of an ethical regime introduced by the new US administration and designed to draw a line between President Biden’s approach about the financial interests of his family and that of his predecessor, Donald Trump.

The new procedures mean that members of President Biden’s family should discuss possible business commitments or deals with their own lawyers, and then report to the White House counselor, if necessary. After the White House offers its advice on whether to proceed, family members make the final decision. The rules are designed to ensure that members of the president’s family do not have conflicts of interest with U.S. government affairs.

A White House official said, “The president adopted rules and ethical standards for his administration that go beyond those of any other administration in history and include rules for his relatives.”

James Biden could not be reached for comment.

The White House declined to comment on the exact timing of James Biden’s planned business review in the UK or its findings. It is understood that the White House counselor’s ethical reviews take a while. The Financial Times contacted the White House on Friday to comment on James Biden’s business plans in the UK.

James Biden has invested in a number of businesses in the United States, including a controversial attempt to buy the Paradigm hedge fund in 2006 with his nephew, Hunter. 2BT was his first listing as a director in the UK, according to Companies House statements.

In January, Joe Biden told CNN that his family “would not be involved in any business, any company that is in conflict or appears to be in conflict, where there is the proper distance from the presidency and government.”

Shelbourne is jointly owned by 2BT and International Capital Investment, another new LLP launched by Argentine lawyer Ricardo Nicolás Mallo Huergo and José Luis Manzano, a former Argentine congressman and partner of James Biden. Huergo and Manzano are general counsel and chairman of Buenos Aires private equity firm Integra Capital, respectively.

According to Huergo, the two Argentines and James Biden are known “for a long time.” Manzano was part of the Argentine cabinet under the presidency of President Carlos Menem and founded the media group Grupo America, the second largest media company in the country. According to Spanish media reports, James Biden attended Manzano’s wedding in 2015.

Both Argentines are already investing in traditional energy projects, including oil and gas through Integra. Huergo told FT that the new business planned to fund projects focused on the transition from fossil fuels to clean energy.