The next Federal Reserve chair shouldn’t be Wall Street’s servant

summers cc

That is frankly too much to ask. Unless Jim Grant gets the post there is going to be a servant of Wall Street at the head of the Federal Reserve.

That servant however should not be Larry Summers.

On the other hand, if he does become Chairman, he will generate lots of material for this site.

(From The Guardian)

Here is the problem: Summers lacks distance from Wall Street. In fact, as we speak, he is paid servant to Wall Street. He has drawn millions of dollars in pay from Wall Street firms including Citigroup and hedge fund D E Shaw, which paid him, in 2008, roughly $100,000 a week. He has received five-figure speaking fees from Wall Street banks including JP Morgan.

Currently, Summers’ consulting portfolio of clients includes stock exchange Nasdaq OMX, venture-capital firm Andreessen Horowitz and asset-management firm Alliance Partners, according to the Wall Street Journal. That may have made Summers rich, but it’s also a lot of baggage for a Fed chairman, who makes controversial decisions every few months about the future of the financial system.

Click here for the article.