Obama Adviser Paid Millions As Hedge Fund Director

WASHINGTON (AP) — Lawrence Summers, President Barack Obama's top economic adviser, earned millions over the past year as managing director of the hedge fund D.E. Shaw Group and through speaking fees, some from financial institutions now at the center of the government's rescue program.

Financial disclosure reports released by the White House show that Summers received $5.2 million from D.E. Shaw. He also reported payments for appearances before institutions such as J.P. Morgan, Citigroup, Goldman Sachs and Lehman Brothers.

Overall, Summers was paid $2.7 million for more than 40 appearances before different organizations and companies, including financial institutions.

"Given that Dr. Summers is widely recognized as one of the country's most distinguished economists and formerly served as treasury Secretary, there was considerable interest in hearing his economic insights from companies across various industries," White House spokesman Ben LaBolt said.

Obama has enacted strict rules against hiring lobbyists for administration positions that would have influence over their former clients. A White House official said Summers will not work on issues specifically related to D.E. Shaw for two years. The official noted that Summers was not an adviser or an employee of the firms that paid him to give speeches.