Speakes Exits Merrill Lynch After Reagan ‘Quote’ Flap : Ex-Press Aide Bows to Pressure

Former White House spokesman Larry Speakes resigned as chief spokesman for Merrill Lynch & Co. today, days after he created a storm of controversy by admitting he once concocted quotes to make President Reagan look good.

Speakes said in a statement that his resignation from the $250,000-a-year job was “the best course of action for Merrill Lynch and for me personally. Merrill Lynch is a great firm and the industry leader, and I’ve enjoyed being part of it.”

Speakes had been under intense pressure to quit as head of communications at the Wall Street investment giant because of his disclosures in a book about his tenure as White House spokesman that he had attributed to Reagan comments that the President never made. Speakes had served at the White House for nearly six years as Reagan’s chief spokesman.

Merrill Lynch said in a statement: “We accept Larry Speakes’ resignation with regret. Larry has made a significant contribution to our firm during his time here, and we wish him well in every regard.”

Under Intense Pressure

A source familiar with Speakes’ decision, who spoke on condition he not be identified, said Speakes was under intense pressure from senior Merrill Lynch management to quit because the phony-quote disclosures raised serious questions about his credibility and by extension the credibility of the company.

Merrill Lynch spokesman Fred Yager declined to elaborate on Speakes’ resignation decision. “I think the statement speaks for itself. I’m not gong to veer from the statement,” Yager said.

Earlier today, Speakes, stunned by the reaction to his memoir, “Speaking Out,” said he would not attend the White House Correspondents dinner next week honoring President and Mrs. Reagan.

Speakes, who had been invited to the annual black-tie dinner on April 21 by the Washington Post, said he “sort of discussed” the invitation with Post columnist Donnie Radcliffe and it was decided that he would not attend.

There were reports that the Post had decided to withdraw its invitation to Speakes after disclosures that he had made up presidential quotes on at least two occasions while serving as President Reagan’s spokesman.

‘It Was a Mistake’

“Clearly it was a mistake,” said a subdued Speakes, who acknowledged that he was hurt by the reaction.

The White House Correspondents dinner will be a farewell salute to the Reagans who will be the guests of honor.

Earlier Speakes had canceled an appearance at Denison University in Granville, Ohio, because of what school officials called the controversy over his book.

Speakes claimed earlier this week that he he told Reagan about making up the quotes, but Reagan denied that in a speech Thursday to an editors’ meeting in Washington. Reagan said he disapproves of “kiss and tell books.”

Created an Uproar

The disclosures created an uproar among the present White House press office staff.

Speakes’ successor, Marlin Fitzwater, who had excoriated Speakes this week for the fabricated quotes, told reporters today, “I’m sorry for him, personally.”

Fitzwater said he would comment no further.

On Monday, Fitzwater, who succeeded Speakes as Reagan’s chief spokesman, had labeled his predecessor’s conduct “a damn outrage.”