In Rare Appearance on Campus, Corporation Fellow Speaks of Uncertainty in Financial Markets

Senior Harvard Corporation member Robert E. Rubin ’60 made his first public appearance in Cambridge this year yesterday, after skipping commencement, President Drew G. Faust’s appointment, and her installation—events traditionally attended by Corporation members.

Before an audience of several hundred, the former U.S. Treasury secretary, who is the second-most senior member of the University’s highest governing body, discussed “Leadership in Times of Uncertainty” at Harvard Business School (HBS), pulling from his experience in both the public and the private sector.

Introduced by HBS Dean Jay O. Light as “a leader who I think knows a little bit about being in times of uncertainty,” Rubin spoke about his recent Citigroup's appointment as chairman of the board after the sudden departure of former CEO Charles O. Prince III. The company reported several billion dollars worth of write-downs as a result of the summer’s credit crisis.

Rubin, who served as co-chairman of Goldman Sachs before joining President Bill Clinton’s cabinet, praised current Federal Reserve Chairman Benjamin S. Bernanke ’75 in yesterday’s speech. Rubin echoed Bernanke, who has spoken about the U.S. economy’s slowdown.

“The Federal Reserve has acted wisely and soundly in response to conditions in front of them,” Rubin said.

But Rubin said the U.S. has lost its dominance both economically and geopolitically and must adjust itself to “the greatest change in economic conditions since the U.S. emerged and maybe even the industrial revolution.”

Listing a host of “politically difficult” problems, including financial deficits, a “zero” personal savings rate, and the current account deficit, Rubin bemoaned the partisan divide that he said has diminished the effectiveness of the U.S. political system. Rubin left the public sector after six-and-a-half years, succeeded as Treasury secretary by his protege and former Harvard president Lawrence H. Summers.

When asked yesterday if he would consider returning to Washington if a Democrat were elected in 2008, Rubin, who has publicly supported Hillary Clinton in her bid for the White House, initially was adamant in saying no—but later revisited the question and retracted his prior statement.

“I would like to be helpful any way I could,” he said. “I do think it’s the time that if one can make a contribution then you should.”

Regarding his new role at Citigroup, which he joined as a vice chairman after leaving Washington in July 1999, he emphasized finding a long-term solution to the company’s current fiscal woes.

“We are looking to position this great institution so it can continue to move forward,” he said.

Rubin closed by calling upon the room of mostly business school students to be politically engaged, and gave some advice on making good decisions.

“The key to sound decision-making is the recognizing the fundamental pulls of fear and greed that underlie markets and then make sound decisions in the face of all this uncertainty,” he said.

Rubin has been a member of the Corporation since April 2002 and has said previously that he will continue to stay on for the foreseeable future.

—Staff writer Jamison A. Hill can be reached at jahill@fas.harvard.edu.

FOR MORE INFO:

Robert Rubin Named to Corporation (April 08, 2002 ) Robert E. Rubin ’60—mentor and long-time booster of University president Lawrence H. Summers—was confirmed yesterday morning as the newest member of the Harvard Corporation.

Rubin Sheds One Board Post But Vows to Keep Another (August 29, 2006) Harvard Corporation member Robert E. Rubin ’60 has resigned from the board. No, not that board. In fact, although Rubin stepped down from Ford Motor Company’s board last Thursday, he says he has no plans to leave Harvard’s executive board any time soon.

From Marshall to Rubin (June 06, 2001) When former U.S. Secretary of the Treasury Robert E. Rubin '60 steps to the podium in Tercentenary Theater tomorrow to deliver the keynote address, he will be only the latest in a long line of influential Harvard Commencement speakers.