Larry Summers, working under the Clinton administration, pushed for a bill that would deregulate the banks. He also pushed a bill through congress which effectively took away glass steagall, allowing investment banks "gamble" with depositors money. Both of these events largely played a roll in the gigantic crash of '08 and the financial recession. Whether or not Mr. Summers will succeed in becoming the next chair of the Fed is still unknown, however it is safe to say that he will continue the path that Mr. Bernanke has set us on. I don't think Mr. Summers will end up being Obama's nominee because of the bad press that would result from this move. The other candidate seems much more in tune with Bernanke's so called "recovery path."
3 years ago