Larry Summers withdraws from Fed consideration

Larry Summers withdraws from Fed consideration

Looks like Summers has 'reconsidered' his nomination by Obama to be the Chairman of the Federal Reserve !!!

Perhaps all the conflicts of interest got the best of him.

I always wondered why Obama even put Summers in the spotlight anyway ?

Former U.S. Treasury Secretary Larry Summers called President Obama on Sunday to withdraw his name from consideration for the position of Federal Reserve chairman. Obama says he has accepted Summers' decision.

Ah yes....'reluctantly'

Summers said in the letter: "I have reluctantly concluded that any possible confirmation process for me would be acrimonious and would not serve the interests of the Federal Reserve, the Administration, or ultimately, the interests of the nation's ongoing economic recovery."

The president tells the Associated Press that Summers was a critical member of his economic team and says he is grateful for his service on behalf of the country.

Larry Summers withdraws from Fed consideration


Seems like a relief, and everyone should be glad to see that Obama 'accepted' the 'withdrawal'.

Trouble is however, these guys never really 'go away' do they.

I bet he gets a comfy consultant position somewhere and continues his wrath 'anonymously'.

Good riddance ,the next will probably be worse
Rob

Speaking as a semi-layman, could the seat be just too hot at the moment? Could he have turned down the position for the same reason Bernanke vacated it?

I mean let's see... debt limit reached April / May this year, treasury bill interest going through the roof and ready to push up other rates to stay competitive, mortgage rates getting ready to price the entire middle class out of the market, and kill the architectural and construction industries, presidents colluding with Saudi's to distract from the economic train speeding toward a lead wall, stock market, as distanced as it is from "real reality" getting ready for a big correction...

Is it any wonder no one wants to be the captain of this boat to hell?

reply to post by joeraynor


As a complete layman,this and the past 3 administrations have left a tough row to hoe.Between the bankers and the mortgage industry, this economy will never recover. Hold on!
Rob

What about the lady, don't remember her name, but she will likely be Bernanke successor now.
From what i have read, she will print even more agressively so amerika is in good hands.

Janet Yellen. www.businessweek.com...=hp-ls

reply to post by xuenchen


What a sigh of relief! Larry wasn't even capable of doing his last job. He should remain a professor where he doesn't have to prove his capabilities to anyone!

reply to post by xuenchen

How about we audit the fed, then eliminate it.

No more central banking, free markets from now on.

reply to post by xuenchen

Good, we dodged a bullet imo. Here is more info on him and his ties:

speculativeoptimist
Just wanted to ad this about former Treasure Secretary Mr, Summers:

After Obama took office in 2008, he enacted sweeping ethics rules that say that no presidential appointee can work on matters directly related to a former employer for two years after taking a government job. That means that unless Obama grants Summers an exemption from the rules—a move that could be politically controversial—the former Treasury secretary will have to recuse himself from a slew of Fed decisions involving Citi, which is the third-largest bank in America. Experts say those recusals could hamper Summers' ability to run the Fed effectively.

The Obama administration has granted dozens of ethics rules waivers since 2009, but they have mostly gone to lower-level appointees with limited conflicts of interest. Were Summers to be granted a waiver, according to Holman, it would be the most significant one yet.

If appointed, Summers might have to remove himself from consultations on penalties levied against Citi for things like sketchy foreclosure practices and inadequate anti-money-laundering protections. Nor would he be able to vote on post-financial crisis rules that Congress ordered the Fed to draft, including restrictions on CEO pay and guidelines for how much emergency capital Citi has to keep on its books. (The Fed board votes on all regulations, mergers, and applications to form new banks; it has voted 20 times so far in 2013. Penalty decisions are often delegated to staff or regional reserve banks, but the board consults on them.)

Holman says Summers' potential conflicts of interest should trouble the White House. "You'd expect that if he represents a behemoth and has to recuse himself so frequently, that should be a factor in considering not appointing him." But Sanford Weill, the architect of the merger that created Citigroup and its chairman until 2006, is not worried. On Tuesday, he noted that that he has "unbelievable confidence" in Summers' ability to do the job.

www.motherjones.com...

Just more interesting info regarding this issue.

greencmp
reply to post by xuenchen

 

How about we audit the fed, then eliminate it.

No more central banking, free markets from now on.

Not a bad idea.

But what would they do with all the indoctrinated bureaucrats ?

What would we use for money ? [ oh my god ! ]

How would people be able to stay in deep debt ? [ panic ! ]

What would happen to all the social programs ? [ Huh ? ]

What would the 'Progressives' do ? [ gulp ! gasp ! ]

Hey wait....maybe it all works for a change !!

Not a bad idea Great Idea !!!!

xuenchen

greencmp
reply to post by xuenchen

 

How about we audit the fed, then eliminate it.

No more central banking, free markets from now on.

Not a bad idea.

But what would they do with all the indoctrinated bureaucrats ?

What would we use for money ? [ oh my god ! ]

How would people be able to stay in deep debt ? [ panic ! ]

What would happen to all the social programs ? [ Huh ? ]

What would the 'Progressives' do ? [ gulp ! gasp ! ]

Hey wait....maybe it all works for a change !!

Not a bad idea Great Idea !!!!

Good questions (and good answers)!