RELIEF RALLIES

Larry Summers isn’t alone. The markets just love to see some people go

Talk about adding insult to injury.

Markets around the world got a lift from the news that former US Treasury secretary Larry Summers was withdrawing his name as a possible next head of the Federal Reserve.

As he contemplates a future in which he is not running the world’s most powerful central bank, perhaps Summers can take solace in the fact that he’s not the only one investors are happy to see disappear from the economic scene. Here are a few recent instances when the departure of important executives—and in one case an entire cabinet—sent key markets higher.

  • The benchmark US S&P 500 index rose roughly 1% in early trading after Summer’s withdrawal from the Fed race on Sunday. (Though some of those gains soon ebbed.) US government bonds also posted gains.
market_reactions_summers
(Photo: Reuters / Pichi Chuang)
market_reactions_ballmer
(Photo: Reuters / David McNew)
market_reactions_yoshihiko
(Photo: Reuters / Toru Hanai)
market_reactions_mason
(Photo: Reuters / Brendan McDermid)

Of course the list could go on. Ron Johnson’s departure from JC Penney pushed the stock higher, as did the end of Bob Diamond’s tenure at Barclays and Siemens’ Peter Loescher. But if there’s an upside for Summers in all of this, it’s that at least he can easily get a cushy, lucrative job somewhere in the private sector now. For CEOs that got the boot, it might not be that simple.

home our picks popular latest obsessions search