Get Ready For Larry Summers As Next Fed Chair
Larry Doyle | Aug 28, 2013 03:39AM ET
Has there ever really been a doubt that Larry Summers would be the next chairman of the Federal Reserve?
Not in these parts.
Remember, President Obama just like his predecessors announce who the chairman of the Federal Reserve will be but that does not mean that he actually makes the selection.
Whom do I believe makes the selection?
Those running the large banks whom the Fed chair oversees. So who would be in this camp, aka, The Club? Certainly Jamie Dimon, Lloyd Blankfein, and John Stumpf (Wells Fargo CEO). Junior members Brian Moynihan (Bank America CEO), Mike Corbat (Citigroup CEO), and James Gorman (Morgan Stanley CEO) probably get half votes given their lack of experience amid Wall Street CEOs.
And who is the real power broker that delivers the message to Washington as to who Wall Street wants as the next Fed chair? Most assuredly, Robert Rubin.
With this backdrop, get ready for Larry Summers — a longstanding member of the Wall Street-Washington Club — to be our next Fed chair. Why do I say this with stronger conviction now than I projected a few weeks back? A proverbial leak conveniently provided to Obama’s compliant and friendly folks at CNBC .
A source from Team Obama told CNBC that Larry Summers will likely be named chairman of the Federal Reserve in a few weeks though he is “still being vetted” so it might take a little longer.
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