Financial Industry Paid Millions to Obama Aide (Larry Summers, others)

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Sat Apr-04-09 08:10 AM
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Financial Industry Paid Millions to Obama Aide (Larry Summers, others)

Financial Industry Paid Millions to Obama Aide

By JEFF ZELENY
Published: April 3, 2009

WASHINGTON � Lawrence H. Summers, the top economic adviser to President Obama, earned more than $5 million last year from the hedge fund D. E. Shaw and collected $2.7 million in speaking fees from Wall Street companies that received government bailout money, the White House disclosed Friday in releasing financial information about top officials.

Mr. Summers, the director of the National Economic Council, wields important influence over Mr. Obama�s policy decisions for the troubled financial industry, including firms from which he recently received payments.

Last year, he reported making 40 paid appearances, including a $135,000 speech to the investment firm Goldman Sachs, in addition to his earnings from the hedge fund, a sector the administration is trying to regulate.

The White House released hundreds of pages of financial disclosure forms, which are required of all West Wing officials. A White House spokesman, Ben LaBolt, said the compensation was not a conflict for Mr. Summers, adding it was not surprising because he was �widely recognized as one of the country�s most distinguished economists.�

Mr. Summers�s role at the White House includes advising Mr. Obama on whether � and how � to tighten regulation of hedge funds, which engage in highly sophisticated financial trading that many analysts have said contributed to the economic collapse.

Mr. Summers, a former president of Harvard University, was Treasury secretary in the Clinton administration. He appeared before large Wall Street companies like Citigroup ($45,000), J. P. Morgan ($67,500) and the now defunct Lehman Brothers ($67,500), according to his disclosure report. He reported being paid $10,000 for a speaking date at Yale and $90,000 to address an organization of Mexican banks.

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The disclosure forms also shed further light on the compensation received by a top Obama aide who previously worked for Citigroup, one of the largest recipients of taxpayer bailout money. The aide, Michael Froman, deputy national security adviser for international economic affairs, received more than $7.4 million from the company from January 2008 to when he joined the White House this year.

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Millionaires work in a variety of positions across the administration, and they include Desir�e Rogers, the White House social secretary. Ms. Rogers, a close Chicago friend of the Obama family, reported income of $2.3 million last year. She earned a salary of $1.8 million from People�s Gas & North Shore Gas, along with three other sources of income from serving on insurance company boards.

Thomas E. Donilon, the deputy national security adviser, reported earning $3.9 million as a partner at the Washington law firm O�Melveny & Myers. His disclosure form says major clients included Citigroup, Goldman Sachs and Apollo Management, a private equity firm in New York that specializes in distressed assets and corporate restructuring.

Mr. Donilon is also entitled to future pension payments from Fannie Mae, where he worked from 1999 to 2005.

Reporting was contributed by Peter Baker, David Johnston, David D. Kirkpatrick, Eric Lipton and Charlie Savage.

Selected financial disclosure forms (pdf) for top appointed administration officials, released by the White House:

* David Axelrod, senior adviser
* Melody Barnes, director, Domestic Policy Council
* Carol M. Browner, climate czar
* Cassandra Quin Butts, deputy White House counsel for domestic policy and ethics
* Gregory B. Craig, White House counsel
* Thomas E. Donilon, deputy national security adviser
* Rahm Emanuel, chief of staff
* Michael Froman, deputy national security adviser
* Jason Furman, deputy director, National Economic Council
* Valerie Jarrett, senior adviser
* James L. Jones, national security adviser
* Desir�e Rogers, White House social secretary
* Lawrence E. Summers, director, National Economic Council

http://www.nytimes.com/2009/04/04/us/politics/04disclose.html?_r=1&hp

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Much more at the link. Nice work. If you can get it.