Larry Summers Resigns from Harvard Following Review of Epstein Files

[00:00] Cole Mercer: From Neural Newscast, I'm Cole Mercer. [00:03] Cole Mercer: And I'm Daniel Brooks. [00:05] Cole Mercer: Today is Thursday, February 26, 2026. [00:10] Cole Mercer: We begin with the resignation of Larry Summers from Harvard University. [00:15] Cole Mercer: This comes after new documents detailed his relationship with Jeffrey Epstein. [00:21] Cole Mercer: We also examine the first insider trading fines in the prediction market industry. [00:27] Announcer: These developments highlight a push for accountability in elite academic circles. [00:32] Announcer: We're also seeing it in the rapidly growing sector of online wagering platforms. [00:37] Cole Mercer: Larry Summers is ending his 50-year tenure at Harvard. [00:42] Cole Mercer: He is retiring from his professorship at the end of this academic year. [00:47] Cole Mercer: the university is currently reviewing government documents and emails. [00:52] Cole Mercer: These records detail his past communications with Jeffrey Epstein. [00:56] Announcer: Summers announced the decision yesterday through a statement obtained by CNBC. [01:02] Announcer: He previously took a leave of absence in November 2025. [01:06] Announcer: That followed his resignation from the board of the artificial intelligence company OpenAI. [01:13] Cole Mercer: The emails released by the Department of Justice and Congress indicate a friendship that lasted well into 2019. [01:20] Cole Mercer: In one exchange, Epstein reportedly referred to himself as a wingman for the former Treasury Secretary. [01:28] Announcer: Harvard Kennedy School Dean Jeremy Weinstein has accepted Summers' resignation from his leadership position. [01:35] Announcer: This was at the Massavar Rahmani Center. [01:38] Announcer: Summers will remain on leave. [01:41] Announcer: He will not take on new students before his retirement. [01:44] Cole Mercer: This case is part of a broader fallout affecting multiple Ivy League schools. [01:50] Cole Mercer: Nobel Prize-winning scientist Richard Axel recently stepped down at Columbia. [01:55] Cole Mercer: Yale professor David Galerter was barred from teaching pending a similar review. [02:00] Announcer: The scrutiny often centers on the period between 1998 and 2008. [02:06] Announcer: During that time, Epstein donated over $9 million to Harvard. [02:11] Announcer: The university even appointed Epstein as a visiting fellow in the psychology department during that period. [02:18] Cole Mercer: The university later concluded that Epstein lacked the typical academic qualifications for visiting fellows. [02:25] Cole Mercer: They found he was unqualified to pursue the proposed course of study. [02:29] Cole Mercer: Summers has stated he is deeply ashamed of his actions. [02:34] Announcer: Summers has not been accused of any criminal wrongdoing. [02:38] Announcer: However, the volume of correspondence has made his continued role at the university untenable. [02:44] Announcer: the pressure for institutional transparency seems to be reaching beyond the campus. [02:50] Cole Mercer: While elite institutions respond to legacy ties, [02:54] Cole Mercer: the digital economy is attempting to regulate its future. [02:58] Cole Mercer: New enforcement measures are coming to prediction markets. [03:02] Announcer: The platform Kalshi has fined and suspended two users for insider trading violations. [03:09] Announcer: This marks the first time a major U.S. prediction market has publicly disciplined traders. [03:15] Announcer: They were cited for using non-public information to place bets. [03:20] Cole Mercer: Artem Kaptur is a video editor for the YouTuber Mr. Beast. [03:24] Cole Mercer: He received a $20,000 fine. [03:27] Cole Mercer: Surveillance systems flagged statistically anomalous wins. [03:31] Cole Mercer: Capture allegedly used material information obtained through his job to place successful bets. [03:37] Announcer: A spokesperson for Beast Industries said the company has no tolerance for this behavior. [03:43] Announcer: They have initiated an independent investigation. [03:46] Announcer: Kalshi noted that their systems flagged the trades as near-perfect. [03:51] Announcer: This alerted their enforcement team. [03:54] Cole Mercer: Kalshi also sanctioned Kyle Langford. He ran for California governor last year. [04:00] Cole Mercer: Langford was fined $2,000 and received a five-year suspension. [04:04] Cole Mercer: He was wagering on the outcome of his own political race. [04:09] Announcer: The platform stated that candidates are strictly prohibited from trading on market forecasts. [04:14] Announcer: These cases have been reported to the U.S. Commodity Futures Trading Commission for further review. [04:21] Cole Mercer: Bobby De Nault is the head of enforcement at Kalshi. [04:25] Cole Mercer: He emphasized that no financial exchange is immune from that actors. [04:29] Cole Mercer: The company has reportedly opened 200 investigations into potential rule violations over the past year. [04:37] Announcer: Prediction markets have surged in popularity. [04:39] Announcer: They attracted hundreds of millions of dollars in wages during the recent election cycle. [04:44] Announcer: This growth has brought intense scrutiny from federal regulators. [04:48] Announcer: They worry about market manipulation. [04:51] Cole Mercer: The industry has received a warmer welcome under the current administration. [04:55] Cole Mercer: However, these fines suggest that platforms feel pressure to prove they can police themselves [05:00] Cole Mercer: effectively. [05:02] Cole Mercer: This is a significant test for the sector. [05:05] Announcer: Both the Harvard resignation and the call she finds show a rising floor for ethical standards. [05:11] Announcer: We see consequences for using privileged access for personal gain. [05:16] Announcer: It remains to be seen if other platforms follow this lead. [05:20] Cole Mercer: We will continue to track the investigations into academic conduct and market integrity as more documents are unsealed. [05:28] Cole Mercer: I'm Daniel Brooks. [05:30] Cole Mercer: I'm Cole Mercer. [05:31] Cole Mercer: Neural Newscast is AI-assisted, human-reviewed. [05:35] Cole Mercer: View our AI transparency policy at neuralnewscast.com. [05:40] Daniel Brooks: Neural Newscast uses artificial intelligence in content creation with human editorial review prior to publication. [05:47] Daniel Brooks: While we strive for factual, unbiased reporting, AI-assisted content may occasionally contain [05:52] Daniel Brooks: errors. Verify critical information with trusted sources. 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