The Deal: Rules and Derivatives Moves Helped Do In Summers

From The Street
By The Deal
September 16, 2013

NEW YORK (The Deal) — Critics of Lawrence Summers raised lots of issues with his candidacy to lead the Federal Reserve.

However, noise from the liberal wing of the Democratic Party about his role in a series of deregulatory efforts during the Clinton Administration’s waning days were a key factor in pushing the former Treasury secretary to pull his name from consideration to run the central bank Sunday. Republican reservations didn’t help Summers’ cause either.

Summers appeared to be President Barack Obama’s main choice for the job. However, repeated criticism of his actions in the late 1990s, first as deputy Treasury secretary and then later as Treasury secretary, all contributed to the end of his candidacy.

“The enemy of Larry Summers was Larry Summers,” said Cornelius Hurley, professor at Boston University’s School of Law. “While he had the progressive passionately against him over deregulation during the Clinton administration, he didn’t have a lot of fans on the right either.”

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