Larry Summers

  • 01 Oct 2014 at 12:41 PM

People Are Not Paying Enough Attention To Larry Summers

So the big guy will do what it takes to make people pay attention to him. Even if that means contradicting himself by calling into question (a) policies he presumably had a hand in crafting back when he was telling President Obama and his old buddy Lil’ Tim Geithner how to run the economy and (b) policies he’s championed since heading back out into the real world to make some money. To wit: His former protégé should not have spent all of that time undermining what Ben Bernanke was doing by issuing all of that long-term debt Larry called for to pay for bridges and airports and whatnot. Read more »

Far be it for Larry Summers to tell the person who he was passed over for the Fed Chairman gig how to do her job but… Read more »

Donald Kohn stays at number three so as not to give him the impression he might get the job. Read more »

The spreading expectation that President Obama will name Lawrence H. Summers to lead the Federal Reserve Board appears to be working against the central bank’s efforts to stimulate the economy. The jitters even have some analysts betting that a Summers nomination could lead to slower economic growth, less job creation and higher interest rates than if the president named Janet L. Yellen, the Fed’s vice chairwoman. [NYT]

“We are getting this from – I would say a White House source, a person very close to the White House who does work on Wall Street. I would describe it as a White House source. He is telling the FOX Business Network that the decision is going to be made – who to get this job in several week…but what we understand is that Larry Summers, this source says, is the odds on favorite. Let me describe the odds, as it was described to me, and it shows you why he is not necessarily in there yet. It’s been described to me – and this is a very well played source as 60-40 that Larry Summers gets it…and here is the one thing that is going on right now that I think is kind of interesting…he White House continues to vet Larry Summers. They are looking specifically at his Wall Street ties.” [FBN]

In addition to rejoining the Harvard faculty in 2011, he jumped into a moneymaking spree. His clock was ticking partly because he knew that the Fed chairmanship, to which he has long aspired, was likely to open up in early 2014, when Ben S. Bernanke’s second term will come to an end…The opportunities have been many over the last two years. Mr. Summers, 58, has been employed by the megabank Citigroup and the sprawling hedge fund D. E. Shaw. He works for a firm that advises small banks as well as the exchange company Nasdaq OMX. And he serves on the board of two Silicon Valley start-ups: both financial firms that may pursue initial public offerings in the next year. One of them, Lending Club, offers loans to consumers and small businesses by making arrangements directly with online investors, a new business model that falls into a regulatory gap that consumer advocates say may lead to risky borrowing. [NYT]