Robert Rubin facts for kids

This page is about the U.S economist and Secretary of the Treasury. For the mathematician, see Robert Joshua Rubin.

Quick facts for kids Robert Rubin
Rubin in 2014

Chairman of the Council on Foreign Relations
In office June 30, 2007 – July 1, 2017 Serving with Carla Hills
President	Richard Haass
Preceded by	Peter George Peterson
Succeeded by	David Rubenstein
70th United States Secretary of the Treasury
In office January 11, 1995 – July 2, 1999
President	Bill Clinton
Deputy	Frank N. Newman Larry Summers
Preceded by	Lloyd Bentsen
Succeeded by	Larry Summers
1st Director of the National Economic Council
In office January 25, 1993 – January 11, 1995
President	Bill Clinton
Preceded by	Position established
Succeeded by	Laura Tyson

Personal details
Born	Robert Edward Rubin (1938-08-29) August 29, 1938 (age 86) New York City, New York, U.S.
Political party	Democratic
Spouse	Judith Oxenberg
Children	2
Education	Harvard University (BA) London School of Economics Yale University (LLB)
Signature
Website	robertrubin.com

Robert Edward Rubin (born August 29, 1938) is an American who used to work as a banking executive and a government official. He was the 70th U.S. Secretary of the Treasury when Bill Clinton was president. Before working for the government, he spent 26 years at Goldman Sachs, a big investment bank. He even became a co-chairman there.

Many people say Rubin helped the U.S. economy grow strong during the Clinton years. This included important laws like the 1993 Deficit Reduction Act. However, some people later said that his policies, which were good for banks, might have played a part in the 2007–2008 financial crisis.

Today, Rubin is still involved in several important groups. He helped start The Hamilton Project, which focuses on economic policy. He is also a co-chair emeritus of the Council on Foreign Relations.

Early Life and Education

Robert Rubin was born in New York City on August 29, 1938. His parents were Sylvia and Alexander Rubin. When he was young, his family moved to Miami Beach, Florida. He graduated from Miami Beach Senior High School.

In 1960, Rubin earned a Bachelor of Arts degree in economics from Harvard College. He then went to Harvard Law School for a short time. After that, he traveled the world. He later studied at the London School of Economics. In 1964, he received his law degree from Yale Law School.

Early Career Steps

From 1964 to 1966, Rubin worked as a lawyer in New York City. Then, in 1966, he joined Goldman Sachs. This is a large global investment bank. He started in a department that dealt with financial risks. Over time, he moved up in the company. By 1990, he became a co-senior partner and co-chairman.

Rubin also got involved in politics. He helped with Walter Mondale's presidential campaign in 1984. He also led the committee for the 1992 Democratic National Convention in New York. He served on the board of the New York Stock Exchange. He also advised New York Governor Mario Cuomo and Mayor David Dinkins.

Working for the Clinton Administration

From 1993 to 1995, Rubin worked in the White House. He was the Assistant to the President for Economic Policy. In this role, he led the National Economic Council (NEC). President Bill Clinton created the NEC to help coordinate economic policies.

The NEC helped the White House work closely with different government departments. They worked on policies about the budget, taxes, and international trade. The NEC helped organize policy ideas for the President. It also made sure decisions were put into action. Many people praised Rubin for making this new system work well.

The 1993 Deficit Reduction Act

Rubin strongly encouraged President Clinton to focus on reducing the government's debt. He was a key person behind Clinton's 1993 Deficit Reduction Act. This law aimed to lower the national debt.

Supporters of the Act said it helped create a budget surplus in the late 1990s. They also said it led to strong economic growth. However, others pointed out that the Act raised taxes. Rubin himself supported raising taxes for people with higher incomes. News reports at the time said this budget deal was very important. It showed financial markets that the new president was serious about reducing the deficit. This helped lower interest rates and boost the economy.

Serving as Secretary of the Treasury

Robert Rubin's official Treasury portrait, 1999

In December 1994, President Clinton chose Rubin to be the Treasury Secretary. On January 10, 1995, Rubin officially became the 70th United States Secretary of the Treasury. The U.S. Senate approved him with a vote of 99-0.

Rubin's time as Treasury Secretary was a period of great economic success for the U.S. He is seen as one of the main reasons for this growth. During his time, unemployment fell from 6.9 percent to 4.3 percent. The U.S. budget went from a large deficit to a surplus. Inflation also decreased. Rubin resigned in July 1999. His deputy, Lawrence Summers, took over as Treasury Secretary.

Many experts, like CNN Money, called Rubin one of the main people behind Clinton's economic success. They often credit him, along with Alan Greenspan (who led the Federal Reserve), for the long period of economic growth. Senator Chuck Hagel said Rubin was an "ideal public servant." President Clinton even called him "the greatest secretary of the Treasury since Alexander Hamilton."

Handling International Crises in the 1990s

Soon after becoming Treasury Secretary in January 1995, Rubin faced a big challenge. This was the Mexican peso crisis. Mexico was in danger of not being able to pay back its international loans. President Clinton, following advice from Rubin and Greenspan, offered Mexico $20 billion in U.S. loan guarantees. This helped Mexico recover. The U.S. Treasury even made a profit from this loan.

In 1997 and 1998, Rubin, Greenspan, and Deputy Treasury Secretary Summers worked together. They worked with the International Monetary Fund to help with financial problems in Russia, Asia, and Latin America. Time Magazine even called them "The Committee to Save the World" on its cover.

The Balanced Budget Agreement

Rubin in 1999

Early in the Clinton administration, Rubin pushed for a balanced budget. He believed this would help the Federal Reserve lower interest rates. He also argued that a balanced federal budget would benefit everyone. Rubin was the main person negotiating with the Republican-controlled Congress to reach a balanced-budget deal. The Balanced Budget Act of 1997 is seen as a major achievement of Rubin's time as Treasury Secretary.

Rules for Financial Products

In 1998, Rubin and Federal Reserve chairman Alan Greenspan did not support new rules for certain financial products called "derivatives." These rules were suggested by Brooksley Born, who led the Commodity Futures Trading Commission (CFTC). Rubin and other officials later recommended that Congress remove the CFTC's power to regulate these derivatives. These types of derivatives were later excluded from regulation by a law passed in 2000. Some reports suggest that these unregulated derivatives played a big part in the 2007–2008 financial crisis.

Arthur Levitt Jr., a former head of the Securities and Exchange Commission, said that Greenspan and Rubin were strongly against these rules. He said they believed it would cause problems. However, Rubin later wrote in his book that he thought derivatives could cause big issues. He also felt that many people using them didn't fully understand the risks. In 2008, The New York Times reported that the proposed rules back then might not have improved oversight much. Rubin said the financial system could benefit from better rules for derivatives. But he also said that politics would have made it impossible to pass such rules at the time.

In 2010, former President Clinton said that Rubin's advice not to regulate derivatives was wrong. Clinton later clarified that he had mixed up different advice he received. He still believed he got excellent advice on the economy from Rubin.

Urban Policy Efforts

Rubin was a strong supporter of investing in struggling rural and urban communities. He worked to expand the Community Reinvestment Act. This law encourages banks to lend money in low-income areas. As Treasury Secretary, he also pushed for more community development financial institutions (CDFIs). These groups invest in inner cities. Rubin also helped with Clinton's plan to create "empowerment zones." These zones offered tax breaks for businesses that invested in certain areas.

Changes to Banking Laws

As Treasury Secretary, Robert Rubin believed that the Glass-Steagall Act was old and no longer effective. This law had separated commercial and investment banking. However, it wasn't until the late 1990s that Congress and the Clinton administration finally decided to repeal it. This happened partly because of efforts by Sanford I. Weill. He wanted the law repealed so his company, Travelers Group, could merge with Citicorp.

Rubin left the Clinton administration in July 1999. In October 1999, he joined Citigroup, the company formed by the merger. The Glass-Steagall Act was eventually repealed by the Gramm–Leach–Bliley Act. This happened under Rubin's successor, Lawrence Summers, and was signed by President Clinton in November 1999.

After Government Work

Local Initiatives Support Corporation

After leaving the Clinton administration, Rubin became chairman of the board for the Local Initiatives Support Corporation (LISC). LISC is a leading group that supports community development. An editorial in the Chicago Tribune noted that Rubin was passionate about bringing business to neglected areas. This was true even when he worked on Wall Street. He believed business investment was key to fighting poverty in cities and rural areas.

Working at Citigroup

Rubin joined Citigroup in 1999. He became chairman of the executive committee of the board. His job at Citigroup focused on meeting with clients and leaders. He helped bring in business and advised the bank's leadership. The New York Times reported that Rubin had publicly said he was not interested in running the bank.

After the 2008 financial crisis, some people criticized Rubin. They argued that he increased risk-taking at Citigroup. This exposed the bank to greater losses. They also said his economic policies as Treasury Secretary made the situation worse. Rubin has stated that he was not alone in failing to see how bad the crisis would be. The U.S. government spent $45 billion to help Citigroup in 2008. Citigroup later repaid this money, and the government made a profit.

In 2008, some investors filed a lawsuit. They claimed that Citigroup executives, including Rubin, sold shares at high prices while hiding the company's risks. Citigroup settled the lawsuit in 2012, paying $590 million. They denied any wrongdoing. Rubin resigned from Citigroup in 2009.

Other Important Work

On July 1, 2002, Rubin became a member of the Harvard Corporation. This is the main governing board of Harvard University. He served on this board until June 2014.

As of 2024, Rubin is involved with The Hamilton Project. This is a group that studies economic policy. He helped start it in 2006. He is also a co-chairman emeritus of the Council on Foreign Relations. Rubin serves as a trustee for the Mount Sinai Health System. He also co-chairs the advisory board of the Peter G. Peterson Foundation. Additionally, he works as a senior counselor at Centerview Partners, an investment banking firm.

Rubin was also part of the Africa Progress Panel. This group worked to promote fair and lasting development in Africa. He also served on the Global Citizenship Commission. This group looked at and suggested updates to the United Nations' 1948 Universal Declaration on Human Rights.

Books by Robert Rubin

Rubin's first book is called In an Uncertain World: Tough Choices from Wall Street to Washington. He wrote it with Jacob Weisberg. It became a New York Times bestseller. Business Week also named it one of the ten best business books of 2003.

His second book, The Yellow Pad: Making Better Decisions in an Uncertain World, came out in May 2023. In this book, he talks about his way of thinking about decisions. He explains that every choice has some risk. Bloomberg News named this book one of the "Best Books of 2023."

His Views on Policy

Economic Policies

Rubin has always supported careful spending by the government. He also believes in public investment. As Treasury Secretary, he worked to change the federal budget from a deficit to a surplus. He has spoken against large budget deficits. He is also known for developing the "strong dollar policy." This has been a key part of U.S. economic policy since his time at the Treasury.

He is often described as a "pro-growth Democrat." This means he supports policies that help the economy grow. News organizations like The New York Times and Chicago Tribune have said his policies helped American economic growth in the 1990s. However, some Republicans have criticized him for not cutting taxes enough. Some Democrats have also said his policies contributed to the 2008 financial crisis.

Rubin has supported tax policies that benefit low- and middle-income Americans. He has also opposed tax cuts that mostly help very wealthy people. During the Biden administration, Rubin joined other former Treasury secretaries to support the Inflation Reduction Act. He also supported a permanent child tax credit.

In April 2016, he was one of eight former Treasury secretaries. They asked the United Kingdom to stay a member of the European Union. This was before the June 2016 Referendum.

Climate Change Policies

One of Rubin's important interests is climate change. In 2014, he was on the U.S. Climate Risk Committee. This group studied the economic risks of climate change in the United States. On March 4, 2015, Rubin spoke about the economic effects of climate change. He talked about the costs of not taking action.

He called climate change "the existential threat of our age." He suggested three ideas to help deal with climate change risks. First, change how we measure the gross domestic product to include climate change costs. Second, companies should tell investors about the costs of their carbon emissions. Third, the U.S. government's financial plans should include future costs of dealing with climate change. He first shared these ideas in a Washington Post article.

In 2016, former Treasury secretaries Rubin, Henry Paulson, and George Shultz wrote a letter. They urged the United States Securities and Exchange Commission to manage financial information about climate change.

Personal Life

Robert Rubin and his wife, Judith O. Rubin, have two adult sons. Their names are James Rubin and Philip Rubin. The Rubins were long-time members of Temple Beth Sholom in Miami Beach.