The Times reports that Obama economic adviser Lawrence Summers earned millions of dollars from a hedge fund and Wall Street firms the year before joining the Obama administration.
While Mr. Obama campaigned on a pledge to restrict lobbyists from working in the White House, a step intended to reduce any influence between the administration and corporations, the ban did not apply to former executives like Mr. Summers, who was not a registered lobbyist. In 2006, he became a managing director of D. E. Shaw, a firm that manages about $30 billion in assets, making it one of the biggest hedge funds in the world.
“Dr. Summers was not an adviser to or an employee of the firms that paid him to speak,” [White House spokesman] Mr. [Ben] LaBolt said.
He added, “Of course, since joining the White House, he has complied with the strictest ethics rules ever required of appointees and will not work on specific matters to which D. E. Shaw is a party for two years.”