Citigroup Says Summers Working as Consultant Since at Least 2012Donal Griffin
Larry Summers, the former Treasury secretary in the running to replace Ben S. Bernanke as Federal Reserve chairman, is a paid consultant for Citigroup Inc.
Summers, 58, has worked for Citigroup since at least 2012, according to Danielle Romero-Apsilos, a spokeswoman for the New York-based lender. She declined to say how much compensation he receives from the bank, the third-biggest in the U.S. The Fed is one of the primary regulators of the nation’s lenders.
“In addition to speaking at internal meetings, we engage Mr. Summers for small private-bank client and institutional client meetings,” Romero-Apsilos said in an e-mailed statement. “He provides insight on a broad range of topics including the global and domestic economy.”
The Citigroup tie could fuel opposition to Summers, who was an advocate for financial deregulation before the banking system almost collapsed in 2008. He was a key adviser to President Barack Obama in the wake of the crisis, weighing the fate of U.S. banks as head of the National Economic Council. Citigroup needed a $45 billion bailout, which it later repaid.
The Wall Street Journal reported the arrangement earlier today and said Summers also works for Nasdaq OMX Group Inc., the D.E. Shaw & Co. hedge fund and the Andreessen Horowitz LLC venture capital firm.
Kelly Friendly, a spokeswoman for Summers, and Nasdaq’s Joseph Christinat said they couldn’t comment.
Obama hasn’t named a potential successor to Bernanke, whose tenure expires at the end of January. Summers and Fed Vice Chairman Janet Yellen are the leading candidates to replace Bernanke, according to a former top government official in contact with the White House.
Summers served as Treasury secretary under President Bill Clinton.