Kudlow Quits Bear Stearns for National Review Post

Lawrence A. Kudlow resigned Thursday as chief economist of the Wall Street investment firm Bear Stearns & Co., saying he would take a position as economics editor of National Review magazine.

Kudlow, 46, who often writes and speaks on political and economic issues, said he has also been encouraged to run for the U.S. Senate seat held by Daniel Patrick Moynihan (D-N.Y.), whose term expires this year.

The announcement of Kudlow’s resignation came in a one-page statement saying that Bear Stearns and Kudlow “agreed that it is in Mr. Kudlow’s best interest to resign.” The wording sparked speculation that the firm was unhappy about his outside activities--most recently, his decision to appear in TV commercials for Cadillac.

“Larry has a lot of energy and just spreads himself thin,” said one analyst, who requested anonymity. “In today’s kind of market, with things as competitive as they are, a guy cannot do two jobs at once. They probably told him he had to choose one or the other.”

Kudlow said his decision to leave was reached mutually and that the firm had been “very generous and very good” to him.

“In some ways this is a surprise,” he said. “A surprise always generates surprise, and people are always looking for hidden meanings. This was an amicable departure.”

Before joining Bear Stearns, Kudlow was the chief economist in the White House Office of Management and Budget under President Ronald Reagan.