MacroScope

Back when Yellen and Summers had the same boss

With all the back-and-forth in the Yellen versus Summers Fed chair showdown, it’s easy to forget that the two once played for the same team – the Clinton administration.

This incredible photo from the Reuters archive features many of the key players in U.S. economic policy over the last two decades, tracing the arch of the 1990s tech boom, the early 2000s housing surge and the financial crisis of 2008-2009. They include Fed Vice Chair Janet Yellen, then advisor to Clinton, and Larry Summers, then Deputy Treasury Secretary. Both are now seen as leading candidates to replace Ben Bernanke as Fed chair next year.

Also pictured are Treasury Secretary and Citigroup magnate Robert Rubin; budget director and eventual Fannie Mae chief Franklin Raines; chief of staff Erskin Bowles, who became famous for the Simpson-Bowles deficit reduction plan; national economic council director Gene Sperling, currently an advisor to President Barack Obama; and Jack Lew, current Treasury Secretary, who was the deputy director of the office of management and budget.

Plus ca change.

A picture is worth a thousand pages of financial reform

Here’s a snapshot of FDR & Co. in 1933 as they signed Glass-Steagall, which separated the financial sector into safer, deposit-taking commercial banks and risk-taking investment banks – Wall Street.

And here’s a photo of Bill Clinton & Co. repealing Glass-Steagall in 1999, with the passage of the Graham-Leach-Bliley act known as the Financial Services Modernization Act.