Robert Rubin

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Robert Rubin
70th United States Secretary of the Treasury
In office January 11, 1995 – July 2, 1999
Preceded by	Lloyd Bentsen
Succeeded by	Lawrence H. Summers
Born	August 29, 1938 (1938-08-29) (age 68) New York City, New York
Political party	Democratic

Robert Edward Rubin (born August 29, 1938) is an American banker who served as the 70th United States Secretary of the Treasury during both the first and second Clinton Administrations.

Contents 1 Education and background 2 Clinton Administration 2.1 Mexican financial crisis 3 Citigroup and post-political career 4 Positions held 5 References

[edit] Education and background

Born in New York City, Rubin moved to Miami Beach, Florida at an early age and graduated from Miami Beach High School. In 1960, Rubin graduated summa cum laude with a B.A. in economics from Harvard College, where he resided in Winthrop House. He attended the London School of Economics after graduation and received an LL.B. from Yale Law School in 1964.

Rubin began his career as an attorney at the firm of Cleary, Gottlieb, Steen & Hamilton in New York City. He joined Goldman Sachs in 1966 as an associate in the risk arbitrage department. Rubin proved to be a master of the intricate art of investing his firm's capital in high-reward arbitrage opportunities and became a general partner in 1971. He joined the management committee in 1980 along with fellow Democrat Jon Corzine, later a U.S. senator and governor of New Jersey. Rubin was Vice Chairman and Co-Chief Operating Officer from 1987 to 1990. From the end of 1990 to 1992, Rubin served as Co-Chairman and Co-Senior Partner along with Stephen Friedman (PFIAB).

[edit] Clinton Administration

From January 20, 1993, to January 10, 1995, Robert Rubin served in the White House as Assistant to the President for Economic Policy. In that capacity, he directed the National Economic Council, which Bill Clinton created after winning the presidency.

Rubin served as Treasury Secretary from January 10, 1995 to July 2, 1999, succeeding Lloyd Bentsen. Under Rubin's tenure, national deficits turned into surpluses (see Rubinomics).

[edit] Mexican financial crisis

In January 1995, one year after the signing of NAFTA and immediately after his swearing in as Secretary of Treasury, Mexico was suffering through a financial crisis possibly resulting in default on foreign obligations. Rubin, with the backing of Fed Chairman Alan Greenspan, Larry Summers, then-Speaker Newt Gingrich and President Bill Clinton provided $20 Billion in US loan guarantees to the Mexican government through the Exchange Stabilization Fund (ESF).

[edit] Citigroup and post-political career

Rubin left the Clinton Administration and joined Citigroup as an executive in October 1999 and remains there to this day. He sparked controversy in 2001 when he contacted an acquaintance at the Treasury Department and asked if the department could convince bond-rating agencies not to downgrade the corporate debt of Enron, a debtor of Citigroup. Rubin wanted Enron creditors to lend money to the troubled company for a restructuring of its debt; a collapse of the energy giant might have serious consequences for financial markets and energy distribution. The Treasury official refused. A subsequent congressional staff investigation cleared Rubin of any wrongdoing, but he was still harshly criticized by political opponents.

Rubin has written a memoir, In an Uncertain World: Tough Choices from Wall Street to Washington (ISBN 0-375-50585-7), co-written by Jacob Weisberg.

Rubin is married to Judith Oxenberg Rubin, who served as the New York City Commissioner of Protocol for four years under Mayor David Dinkins. The Rubins have two grown sons, James and Philip.

Rubin was briefly mentioned as a potential vice-presidential candidate for 2004 Democratic Party presidential nominee John Kerry. He did serve as an economic policy advisor to Kerry's campaign and was expected to be a front-runner for the position of Chairman of the Federal Reserve upon Alan Greenspan's retirement if Kerry had won. Rubin's heft as a Wall Street tycoon added a stamp of approval to Kerry's economic plans.

Rubin was also unwittingly mentioned in a brief scandal involving MA Governor Deval Patrick, who worked with him in the Clinton Administration. Patrick had served on the board of directors for Ameriquest Financial before his election to Governor, and the company has since run into financial problems regarding debt to Citigroup. Patrick placed a personal call on behalf of Ameriquest to Rubin, assuring him of the company's virtues. The call was widely denounced as Patrick abusing the power of his office to help out old friends, a theme against which he vigorously campaigned in 2006. There was no evidence or mention that Rubin did anything illegal or unethical.

[edit] Positions held

During his time in the private sector, Rubin has served on the board of directors of the New York Stock Exchange, the Ford Motor Company, the Harvard Corporation, the New York Futures Exchange, the New York City Partnership and the Center for National Policy. He has also served on the board of trustees of the Carnegie Corporation of New York, Mt. Sinai Hospital and Medical School, the President's Advisory Committee for Trade Negotiations, the U.S. Securities and Exchange Commission Market Oversight and Financial Services Advisory Committee, the Mayor of New York's Council of Economic Advisors and the Governor's Council on Fiscal and Economic Priorities for the State of New York. He is currently the vice chairman of the board of directors of the Council on Foreign Relations.

[edit] References

• Clinton, Bill (2005). My Life. Vintage. ISBN 1-4000-3003-X.
• Rubin, Robert (2003). In An Uncertain World. Random House. ISBN 0-375-50585-7

Preceded by Lloyd Bentsen

United States Secretary of the Treasury 1995–1999

Succeeded by Lawrence Summers