Obama Chief of Staff Daley Shuffles JPMorgan Stake

Updated to correct the amount of stock that Daley still holds.

NEW YORK ( TheStreet) - President Obama's new chief of staff, William Daley, shuffled around his holdings in JPMorgan Chase ( JPM) last week, exercising stock appreciation rights and restricted units.

The moves left him with 175,678 common shares, according to a regulatory filing. Based on Monday's closing price of $43.40, Daley's stake is worth roughly $7.6 million.

Daley, a top JPMorgan executive, was named to the presidential cabinet on Jan. 6, a move that requires him to divest any holdings that might present a conflict of interest.

Any proceeds that Daley sees from his divestiture of investments would be eligible for tax-free treatment.

In a Form 4 filing with the Securities and Exchange Commission on Monday, Daley disclosed the acquisition of a total of 201,913 common shares through the vesting of restricted stock units and stock appreciation rights. A block of 100,000 shares from restricted stock units had a strike price of $34.78. Daley sold 140,649 common shares the same day at $44.53 each.

Because Daley is selling shares to take a job in the White House, he's allowed to avoid capital gains taxes on the awards this year, as long as he transfers them into government bonds and diversified mutual funds. A tax loophole, known as "26 USC 1043," allows for it.

Daley has also held positions at Boeing ( BA), Merck ( MRK), Boston Properties ( BXP), Fannie Mae ( FNMA.OB) and Abbott Laboratories ( ABT), though it's unclear whether he had any investments in those companies.

-- Written by Lauren Tara LaCapra in New York.

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