In the run-up to the election, I pointed out that the enormous amounts of money the President raised from ordinary people could well mean that we might have an administration attuned to the problems of ordinary people. Well, I was wrong.
Larry Summers was paid $5.2mn by the hedge fund that employed him, D.E. Shaw, according to the Wall Street Journal. That isn’t all the cash showered on him either. Here are some of his $2.77mn in speaking fees: JP Morgan ($67.5K), Skagen Funds ($180K), Citigroup ($99K), Goldman Sachs ($202.5K), Lehman Bros. ($67.5K), CEO 100 ($45K), Price Waterhouse Coopers ($67.5K), State Street Corporation ($112.5K) McKinsey and Co. ($135K), Merrill Lynch ($45K, donated to charity).
Apparently, Larry can’t quite live on the miserly $587K he got as salary from Harvard.
In case you were wondering about conflicts of interest, the WSJ provides this helpful hint:
Among the many decisions the economic team has wrestled with has been whether to step up regulation of hedge funds, one of the most contentious subjects during a summit of world leaders this week. European nations pushed for tougher rules, while the Obama administration preferred a less stringent approach.
Geithner doesn’t pay taxes until he gets caught. Summers is just another Wall Street money grubber. I guess that $300 million regular folks donated in $10 and $20s to Obama wasn’t enough to get anyone on the economic team who isn’t in the bag for the financial elites. I wonder how much more that would have cost?
Now that the secret’s out of the bag, maybe someone at Harvard’s endowment fund can tell us what part of their $8bn loss came at the hands of D.E. Shaw.