Friday, April 3, 2009

Another Financial Outrage: Larry Summers' Conflict of Interest With TARP Recipients

You had to figure that Harvard University fired its ex-president Larry Summers for a reason. Now it’s time for the Obama Administration to wise up about its chief economic advisor.

Here’s the breaking news from the Huffington Post’s Sam Stein:

Barack Obama's chief economic adviser, Larry Summers, received hundreds of thousands of dollars in speaking fees last year from firms that have direct financial interests before the government or are intimately involved in the White House's bank relief programs.

The White House released late Friday the personal financial disclosure forms of many high-ranking administration officials. The document provided for Summers, who serves as one of the president's closest confidants, underscores just how close some of these officials are to the industry over which they now have oversight.

Among the firms that paid Summers large amounts in speaking fees include J.P. Morgan Chase. That bank offered the former Harvard president and Treasury Secretary $67,500 for a February 1, 2008 engagement. It has received $25 billion in government bailout funds.

Citigroup, which has received $50 billion in taxpayer help, paid Summers $45,00 for a speech in March 2008 and another $54,000 for a speech that May.

Goldman Sachs, which has received $10 million in bailout funds, paid Summers $135,000 for a speech on April 16, 2008 and another $67,500 for a speech on June 18, 2008.

Summers also received about $5.2 million over the past year in salary from the major hedge fund D.E. Shaw

The speech payments will undoubtedly raise questions as to the impartiality of the economic advice Summers is providing to the president. Already viewed as too favorably disposed to Wall Street, the lavish payments for speeches will provide fodder for those who think the administration has been forgiving in their approach to the banking industry.

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1 comment:

  1. I doubt there are many people with the experience for that sort of job, who don't have ties of one sort or another to the recipients.

    Imo a better thing to look at is whether they have loyalty to Hillary. Summers and Geithner were both in the Clinton 90s Treasury and are likely allies for her in her global economic plans.

    Besides, if they were fired, who would replace them? Obama supporters most likely -- and with just as many ties or more.