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Summers Got $8M From Hedge Fund, Banks

From the Wall Street Journal:

Hedge Fund Paid Summers $5.2 Million in Past Year


APRIL 4, 2009

WASHINGTON — 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.

The disclosure — in a financial report that is required for federal office holders — comes as Mr. Summers is involved in shaping the Obama administration’s policy decisions on the financial meltdown as well as the broader recession. 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…

Mr. Summers joined D.E. Shaw Group in late 2006 as a managing director. He helped develop strategies including new businesses and also helped evaluate investments for the New York firm, which oversees about $30 billion in assets, making it one of the biggest hedge-fund managers in the world. A D.E. Shaw spokeswoman couldn’t be reached for comment.

In at least one instance, Mr. Summers shed fees paid to him from a Wall Street firm that received federal funds. His form shows that he received a $45,000 speaking fee from Merrill Lynch on Nov. 12 — about a week after Barack Obama won the election — and that he donated the sum to charity.

The White House official said that when Mr. Summers "became aware that Merrill Lynch would be accepting taxpayer funds through its merger with Bank of America, he attempted to cancel his appearance." The official added that "when he was unable, he elected to donate those funds to charity." …

Ho hum.

This would only be a scandal if we were talking about a Republican administration.

But since it isn’t, it is just seen as ‘business as usual.’

Which, for the Democrats, it is.

(Thanks to Canary for the heads up.)

This article was posted by Steve on Saturday, April 4th, 2009. Comments are currently closed.

5 Responses to “Summers Got $8M From Hedge Fund, Banks”

  1. catie says:

    Do as we say, not as we do-the liberal mantra.

  2. canary says:

    Lot’s of advisors who only gave a expensive speech’s that were ineffective, and so much for Obama’s anti-lobbyist hiring.

    excertps from AP update

    Summers, a former U.S. Treasury secretary and Harvard University president, also was paid $2.7 million in speaking fees by a range of organizations and companies, including several troubled Wall Street financial firms, they showed.
    fees of $67,500 from JP Morgan, $45,000 from Citigroup, $135,000 from Goldman Sachs
    and $67,500 from Lehman Brothers, which went bankrupt in the mortgage crisis last year.

    The disclosure documents showed many of the senior advisers to the president earned large salaries from their companies, served in lucrative positions on corporate boards and had large holdings of stocks, bonds and mutual funds.

    National Security Adviser James Jones reported collecting more than $1 million for serving as a director for Boeing, Chevron and other companies. He had a salary and bonuses of $900,000 from the U.S. Chamber of Commerce.

    Obama senior adviser David Axelrod reported $896,776 in salary from his consulting firm AKP&D Message and Media as well as $500,000 in partnership income. He had another $151,914 in partnership income from his other campaign management firm, ASK Public Strategies.

    Axelrod reported he had entered an agreement to sell the firms for $3 million over five years.

    Valerie Jarrett, another senior Obama adviser, reported $346,687 in directors’ fees, including from the consulting firm Navigant, a real estate investment trust and the Chicago Stock Exchange.

    Jarrett had $302,000 in salary from a company that develops and manages apartment buildings, plus $550,000 in deferred salary from the same firm, her disclosure form showed.

    (Additional reporting by David Alexander; Editing by Eric Beech and John O’Callaghan)

  3. proreason says:

    I’m sure Larry means well.

    And 5.2 million is only 3.1% of 167 Million.

    And Larry is a big-time Obamy booster.

    So what’s the problem?

  4. Reality Bytes says:

    Ironic that Summers is the guy who got canned by Harvard for sayin’ women are bad at math.

    Hey, Lar! can you tell the American public what your economic plan’s debt to gdp ratio is? More than 100%?! Do Tell!

  5. pdsand says:

    I’m sure that Mr. Summers will do the right thing and give this money back, in acknowledgement of the fact that so many have fallen on hard times lately. It does appear down right gluttonous to accept millions from wall street when millions are unemployed.

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