by Larry Doyle, Sense on Cents
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 — will announce who the chairman of the Federal Reserve will be, but that does not mean that he actually makes the selection.
Who do I believe really makes the selection or has veto power over the president’s choice?
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, John Stumpf (Wells Fargo CEO), and former Treasury Secretary Tim Geithner. 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 in The Club.
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 the sleep-deprived, bored, and/or arrogant 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? The proverbial leak conveniently provided to Obama’s friends 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.
Repeat after me: Wall Street owns Washington. The pols from both sides of the aisle and regulators are in bed with the industry. There is little doubt of this.
Actually, a Summers appointment only adds further confirmation of this reality that I address in detail in my book, In Bed with Wall Street, being released in January.
As was then, is now, and likely forever shall be, hence we should all . . . navigate accordingly.
Special note from the author:
Please pre-order a copy of my book, In Bed with Wall Street: The Conspiracy Crippling Our Global Economy, that will be published by Palgrave Macmillan on January 7, 2014.
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I have no business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets so that investor confidence and investor protection can be achieved.