Glenn Dubin, co-founder of investment firm Highbridge Capital Management LLC, said the White House mismanaged the process of finding a successor for Federal Reserve Chairman Ben Bernanke.
“I think the process, specifically talking about Larry Summers and the decision to not move forward with him as Fed chairman, is horrendous,” Dubin said at the Bloomberg Markets 50 Summit in New York today. “He was hung out to dry.”
Summers, citing a possible “acrimonious” confirmation process, withdrew his name from consideration for the post this month in the face of opposition from several members of the Senate Banking Committee. Dubin said that Summers would have been a “tremendous” Fed chairman.
Marc Lasry, co-founder of investment firm Avenue Capital Group LLC, said on the same panel that Summers would have made a “great” chairman.
“It’s sad that he had to pull out,” he said in the discussion, which was moderated by Bloomberg Television’s Stephanie Ruhle.
Bruce Richards, co-founder of New York investment firm Marathon Asset Management, said Fed Vice Chairman Janet Yellen will make a “great” chairman and will be better than Summers and former Fed Vice Chairman Don Kohn.
Yellen is Obama’s leading candidate to replace Bernanke after Summers withdrew his name from consideration, people familiar with the matter said last week.