Felix Salmon: What Larry Summers did to Harvard’s finances
Nina Munk’s VF article on Harvard’s endowment isn’t online, but the précis is, and it seems that Larry Summers takes a particular beating, being blamed for $1 billion in losses on interest-rate swaps, as well as for meddling with Harvard Management Company’s investment strategies and ultimately, with Bob Rubin, being responsible for the departure of Jack Meyer. The result?
Munk asked the hedge fund manager to look at Harvard’s finances and assess the extent to which its endowment will be able to keep pace with its immovable costs. The hedge fund manager’s conclusion: “They are completely fucked.”