Summers should have withdrawn from consideration for the Fed Chair position as he was in no way a good candidate. The fact that he was so heavily involved with companies that received bailout money is suspicious at least. There is no doubt that he knew that this was the case and should have withdrawn from Fed Chair consideration without a second thought.
Ben Bernanke was the face of American economics for several years. Upon his retirement, Janet Yellen has been nominated as his replacement. Larry Summers is well qualified to lead the Fed. He taught economics at Harvard and worked for the World Bank. In terms of economic policy, Summers would have been an ideal choice. He only withdrew his name from consideration because of Democratic pressure.