Fortune – Larry Summers’ bid to replace Ben Bernanke as the next head of the Federal Reserve appears to have been derailed, at least in part, by his ties to Wall Street. Just this weekend, Summers pulled out of a paid speaking gig at an upcoming Citigroup (C) event. That was before bowing out of the race to become Fed chairman on Sunday completely.
Fed vice-chairman Janet Yellen is now seen as the frontrunner in this race. She won’t have to face the same criticism. Yellen has never worked on Wall Street. Fed policy restricts her from accepting fees to speak at events sponsored by banks. Her latest disclosure form from the Fed shows no income outside of the Fed and her investments.
