Grandpa’s Top 10 Fun Facts to Know and Share about Larry Summers (special thanks to the good folks at Wikipedia for challenging grandpa to keep the list to 10)
1. Currently Director of the White House’s National Economic Council
2. 27th President of Harvard University and resigned as Harvard's
president in the wake of a no-confidence vote by Harvard faculty
president in the wake of a no-confidence vote by Harvard faculty
3. Succeeded Robert Rubin as Secretary of the Treasury during the final
1 ½ years of the Clinton Presidency
1 ½ years of the Clinton Presidency
4. Teamed with Alan Greenspan and Enron executive Kenneth Lay to
lecture California Governor Gray Davis on the causes of the energy
crisis, explaining that the problem was excessive government regulation.
Under the advice of Kenneth Lay, Summers urged Davis to relax
California's environmental standards in order to reassure the markets.
lecture California Governor Gray Davis on the causes of the energy
crisis, explaining that the problem was excessive government regulation.
Under the advice of Kenneth Lay, Summers urged Davis to relax
California's environmental standards in order to reassure the markets.
5. In 1999 Larry hailed the Gramm-Leach-Bliley Act (repealed key
provisions in the 1933 Glass-Stegall Act). "Today Congress voted to
update the rules that have governed financial services since the Great
Depression and replace them with a system for the 21st century,"
provisions in the 1933 Glass-Stegall Act). "Today Congress voted to
update the rules that have governed financial services since the Great
Depression and replace them with a system for the 21st century,"
6. In 1998, Larry stood firm regarding regulating financial derivatives:
Summers stated that "to date there has been no clear evidence of a
need for additional regulation of the institutional OTC derivatives market,
and we would submit that proponents of such regulation must bear the
burden of demonstrating that need."
Summers stated that "to date there has been no clear evidence of a
need for additional regulation of the institutional OTC derivatives market,
and we would submit that proponents of such regulation must bear the
burden of demonstrating that need."
7. In an October 2001 meeting, Summers criticized African American
Studies department head Cornel West for allegedly missing three weeks
of classes to work on the Bill Bradley presidential campaign, and
complained that West was contributing to grade inflation. Summers also
said that West's rap album was an embarrassment to the university,
and that West needed to do more scholarly work.
Studies department head Cornel West for allegedly missing three weeks
of classes to work on the Bill Bradley presidential campaign, and
complained that West was contributing to grade inflation. Summers also
said that West's rap album was an embarrassment to the university,
and that West needed to do more scholarly work.
8. During Summers' presidency at Harvard, the University entered into a
series totalling US$3.52 billion ofinterest rate swaps, financial
derivatives that can be used for either hedging or speculation.
Summers approved the decision to enter into the swap contracts as
president of the university and as a member of Harvard Corp.,
"the university’s seven-member ruling body" which bears "the school’s
ultimate fiduciary responsibility." By late 2008, those positions had
lost approximately $1 billion in value. This forced Harvard to borrow
significant sums in distressed market conditions to meet margin calls
on the swaps. In the end Harvard paid $497.6 million in termination
fees to investment banks and has agreed to pay another $425 million
over 30–40 years.
series totalling US$3.52 billion ofinterest rate swaps, financial
derivatives that can be used for either hedging or speculation.
Summers approved the decision to enter into the swap contracts as
president of the university and as a member of Harvard Corp.,
"the university’s seven-member ruling body" which bears "the school’s
ultimate fiduciary responsibility." By late 2008, those positions had
lost approximately $1 billion in value. This forced Harvard to borrow
significant sums in distressed market conditions to meet margin calls
on the swaps. In the end Harvard paid $497.6 million in termination
fees to investment banks and has agreed to pay another $425 million
over 30–40 years.
9. Summers has recently come under fire for accepting perks from
Citigroup, including free rides on its corporate jet in 2008. According
to the Wall Street Journal, Larry Summers called Chris Dodd asking
him to remove caps on executive pay at firms that have received
stimulus money, including Citigroup.
On April 3, 2009 Summers came under renewed criticism after it was disclosed that he was paid millions of dollars the previous year by companies which he now has influence over as a public servant. He earned $5 million from the hedge fund D. E. Shaw, and collected $2.7 million in speaking fees from Wall Street companies that received government bailout money
Citigroup, including free rides on its corporate jet in 2008. According
to the Wall Street Journal, Larry Summers called Chris Dodd asking
him to remove caps on executive pay at firms that have received
stimulus money, including Citigroup.
On April 3, 2009 Summers came under renewed criticism after it was disclosed that he was paid millions of dollars the previous year by companies which he now has influence over as a public servant. He earned $5 million from the hedge fund D. E. Shaw, and collected $2.7 million in speaking fees from Wall Street companies that received government bailout money
10. April 22, 2010 interview on PBS NewsHour
Jeffrey Brown: The too-big-to-fail issue, why not go further? Why not just limit the size of banks?
LAWRENCE SUMMERS:
Jeff, that was the approach America took to banking before the Depression. That was the approach that America took to lending in the thrift sector before we had the Savings and Loan crisis.
Most observers who study -- who study this believe that to try to break banks up into a lot of little pieces would hurt our ability to serve large companies and hurt the competitiveness of the United States.
But that's not the important issue. They believe that it would actually make us less stable, because the individual banks would be less diversified and, therefore, at greater risk of failing, because they wouldn’t have profits in one area to turn to when a different area got in trouble.
And most observers believe that dealing with the simultaneous failure of many -- many small institutions would actually generate more need for bailouts and reliance on taxpayers than the current economic environment.
Grandpa's Pictorial Tribute to "Big Lug" Larry
Checking emails from Goldman Sachs, JP Morgan
and the Citigroup private jet schedule
and the Citigroup private jet schedule
Henry Kissinger once said that Larry Summers should
"be given a White House post in which he was charged
with shooting down or fixing bad ideas”.
Larry's position on regulating financial derivatives
Response to Harvard's $1 billion hit on interest rate
swaps contracts
Offering assistance selecting Lotto numbers
Dr. Evil Summers
My childhood was typical: summers in Rangoon... luge lessons
... In the spring, we'd make meat helmets...
Playing follow the leader and staying in the lines
(unlike Timmy Geithner)
Larry's reaction to his Goldman Sachs buddies being
sued by the SEC
Your Parting Gift Mr. Summers
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