http://www.bloomberg.com/apps/news?pid=20601087&sid=aaLzJZKNcc6Y&refer=home DO NOT underestimate the importance of the details of this spat being publicly released; 'not good' is an understatement. Also, please rate this thread 5 stars if you think stock_trad3r pauses World Of Warcraft to Masturbate to Japanese Anime. Thanks. Volcker Chafes at Obama Panel Delay, Strains With Summers Rise By Robert Schmidt and Julianna Goldman Feb. 5 (Bloomberg) -- Paul Volcker has grown increasingly frustrated over delays in setting up the economic advisory group President Barack Obama picked the former Federal Reserve chairman to lead, people familiar with the matter said. Volcker, 81, blames Obamaâs National Economic Council Director Lawrence Summers for slowing down the effort to organize the panel of outside advisers, the people said. Summers isnât regularly inviting Volcker to White House meetings and hasnât shown interest in collaborating on policy or sharing potential solutions to the economic crisis, they said. While Summers, a former Treasury secretary, oversees the official White House economic policy apparatus, Obama tapped Volcker for a new Economic Recovery Advisory Board charged with injecting fresh, outside ideas into policy debates. âWhen you have two strong, highly accomplished, driven people, itâs not unusual that there is going to be a battle over turf,â said James Cox, a professor at Duke University Law School in Durham, North Carolina. âI would hope that Obama doesnât lose Volckerâs counsel. They need someone to help them think outside the box.â The contretemps shows the difficulties Volcker, perhaps the worldâs most respected economist, may encounter as an outside adviser charged with providing policy alternatives to the president, said William Silber, a finance professor at New York Universityâs business school. Outsiderâs Disadvantage Volcker âis not in the White House and he doesnât have a bureaucracy to command,â Silber said. âIt puts him at a disadvantage.â After testifying at a congressional hearing yesterday, Volcker declined to respond to questions. His office said he doesnât grant interviews. Summers, in an interview, played down any conflict. âPaulâs got a kind of experience that no one else has, and the president enormously values his advice,â said Summers, 54. âI think this board is going to be very useful, because itâs very easy sitting here to kind of lose sight of whatâs happening on the front lines of the economy.â Obama named Volcker on Nov. 26 to head the new panel, saying he wanted an outside voice to keep administration policy planning from becoming âtoo insular.â Tensions between the two could hamper Obamaâs efforts to get consensus on how to combat the financial crisis at home and reshape the international banking system. While Summers has a West Wing office, Volckerâs group is supposed to scrutinize economic and regulatory policies and their impact on average Americans. Getting Organized An administration official who asked not to be named said he knows about Volckerâs frustration, which he said has waned since Obamaâs inauguration. The process of setting up the panel has been slowed by bureaucratic hurdles, advisers said. People outside Washington who have talked with Volcker said the former Fed chairman still expresses dissatisfaction. Summersâs resistance has made Volcker more determined to get the panel up and running, they said. With an economic advisory team that includes a former Treasury secretary and a former Fed chairman, turf battles and conflict were recognized as a possibility. âYouâve got a lot of horses in the corral,â Leon Panetta, Obamaâs pick to head the Central Intelligence Agency, said in a December interview before his nomination. Panetta, a former head of the Office of Management and Budget and President Bill Clintonâs chief of staff, said the National Economic Council director has typically played the ringmaster, coordinating different points of view. At the time, Panetta said Summersâs strong opinions may make that job a challenge. âThinking of the personality of Larry Summers, heâs going to have to work at it,â Panetta said. Assault on Inflation The 6-foot, 7-inch Volcker, who ran the Fed from 1979 to 1987, was vilified for raising interest rates to fight inflation at the risk of pushing the U.S. into a recession. Since then, Volckerâs assault on runaway prices has been credited with sparking years of economic growth. Meanwhile, the standing of his successor, Alan Greenspan, has been undermined by questions about whether his policies set the stage for the current credit crunch and economic slowdown. During last yearâs campaign, Volcker was an early backer of Obama and provided economic credibility for the first-term Illinois senator at a time when his primary rival, New York Senator Hillary Clinton, boasted a team of economic advisers that included Greenspan and former Treasury Secretary Robert Rubin. Volcker advised Obama on a March speech in New York that outlined proposals to overhaul U.S. financial regulatory structures. Economic Policy Planning Volcker was considered for Treasury secretary, a post that ultimately went to Timothy Geithner. In mid-December, Volcker was in Chicago to meet with Obamaâs economic advisers for early discussions of alternatives for the $700 billion Troubled Asset Relief Program. Summers and other White House officials said Volcker has continued to play an important role consulting on revamping financial regulations and briefed Obama on the issue last week at a White House meeting with Summers and Geithner. That has been the only time Volcker has visited the White House since the inauguration, including yesterday when the ex- Fed chief was in Washington to testify before Congress on the need for stepped up government oversight of the financial system. In addition, Volcker hasnât been publicly mentioned as taking an active role in economic recovery plans. âEcho Chamberâ When Obama announced Volckerâs appointment after the election, he billed the new board as a vehicle for new ideas about solving the worst financial crisis since the Great Depression. âThe walls of the echo chamber can sometimes keep out fresh voices and new ways of thinking, and those who serve in Washington donât always have a ground-level sense of which programs and policies are working,â Obama said. The Obama adviser said that, once the 16-member commission is up and running, it will meet every few weeks and provide information to the president, giving Volcker a larger role. Volcker has stood behind Obamaâs team, agreeing to testify in Congress on behalf of Geithnerâs nomination, which was jeopardized by errors on his taxes. An economic policy maker of Volckerâs stature deserves more respect and a more visible role, Silber said. âThatâs a real concern if his name falls by the wayside,â said Silber, author of âWhen Washington Shut Down Wall Street: The Great Financial Crisis of 1914.â âThatâs something that worries me at least as much as the fundamental problem.â To contact the reporters on this story: Robert Schmidt in Washington at rschmidt5@bloomberg.net.; Julianna Goldman in Washington at jgoldman6@bloomberg.net Last Updated: February 5, 2009 00:01 EST