BUT…before you go feeling too bad for Summers (or giving him a cookie for taking the high road), there’s another piece of the puzzle to consider. Summers put himself in somewhat of a sticky situation by recently acting as a (presumably very well paid) consultant to Citigroup, which, as per ethics rules implemented by the Obama administration, would prevent Summers from working on matters related to the large bank for a period of two years. Last time I checked, having a Fed chair who was allowed to regulate banks was kind of important, so I’m not really sure what Summers was thinking- he’s not a total idiot, and he most likely doesn’t need the cash, so I can’t tell whether Summers really wasn’t expecting to be in the running for another Obama appointment or whether he thought that the rules wouldn’t apply to him. In any case, I’m kind of disappointed that his withdrawal letter didn’t cite a desire to spend more time with his money.
via www.economistsdoitwithmodels.com
Burn!
Pre-withdrawal, David Warsh beat the ethics drum a few times (here and here and here).
