Gasparino Reporting That Larry Summers May Soon Be Out
Charlie Gasparino has just broken the story that Larry Summers may leave the Obama administration, presumably after the elections, based on the former DE Shaw man's disclosures to various Wall Street execs. This is not a very surprising move for Obama, who has bet his entire mid-term election campaign on his counter-Wall Street rhetoric, if not actions. Too bad that by this point, due to over a year of purposeful inactivity, the TBTF are Too Infinitely Big To Fail. With Summers a horrendous legacy of the administration's extensive ties to Wall Street, it was only a matter of time before he and Obama quietly parted ways. Following this development (and not a second too soon), everyone's attention shifts to Tim Geithner who has overstayed his welcome in the "public" scene for just about his entire tenure, and is way overdue in checking in to his reserved Goldman Sachs cubicle.
Larry Summers, who heads the White House’s National Economic Council, has been described as unhappy in his job, and is suggesting in conversations that he may leave the administration by the end of the year, according to Wall Street executives who deal directly with key members of President Obama’s economic team.
White House press secretary Robert Gibbs told FBN that Summers isn’t going anywhere, at least for now.
It’s unclear why Summers might be looking to leave the administration — though there’s been some speculation that he wanted to be appointed Federal Reserve Chairman. President Obama recently supported Ben Bernanke’s Congressional approval for a second term as Fed chief.
Wall Street executives who deal with Summers say they believe he isn’t being forced out. Others say his fate, like that of Treasury Secretary Tim Geithner, would likely depend on the outcome of the mid-term elections, particularly if the Republicans gain seats or take control of Congress and unemployment remains high.