No Wonder Summers Is So Eager To Save Wall Street

Does the fact that Larry Summers made $2.8 million in speaking fees from Goldman Sachs, JP Morgan, Citigroup, and others last year explain the administration’s ongoing generosity to Wall Street–both in terms of defining the problem in a way that benefits Wall Street (a “lack of liquidity”) and in continuing to bail out the banks at taxpayer expense? 


But it certainly shows how close to Wall Street Summers is.  And we already knew Tim Geithner was close to Wall Street, because Wall Street was his primary constituency at the New York Fed.  And when you’re that close to a single constituency it’s sometimes hard to get the perspective necessary to see the world the way more neutral observers do.

WSJ: Top White House economic adviser Lawrence Summers received about $5.2 million over the past year in compensation from hedge fund D.E. Shaw, and also received hundreds of thousands of dollars in speaking fees from major financial institutions.

A financial disclosure form released by the White House Friday afternoon shows that Mr. Summers made frequent appearances before Wall Street firms including J.P. Morgan, Citigroup, Goldman Sachs and Lehman Brothers. He also received significant income from Harvard University and from investments, the form shows.

In total, Mr. Summers made a total of about 40 speaking appearances to financial sector firms and other places, with fees totaling about $2.77 million. Fees ranged from $10,000 for a Yale University speech to $135,000 for an appearance paid for by Goldman Sachs & Co.

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