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Harvard's Toxic Swaps, Most Approved By Lawrence Summers, Cost The University Almost $1B

First Posted: 03/18/10 06:12 AM ET Updated: 05/25/11 04:00 PM ET

Summers

bloomberg.com:

Harvard's swaps, which assumed that interest rates would rise, proved so toxic that the 373-year-old institution agreed to pay banks a total of almost $1 billion to terminate them. Most of the wrong-way bets were made in 2004, when Lawrence Summers, now President Barack Obama's economic adviser, led the university. Cranes were recently removed from the construction site of a $1 billion science center that was to be the expansion's centerpiece, a reminder of Summers's ambition. The school suspended work on the building last week.

Read the whole story: bloomberg.com

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Filed by Grace Kiser  |