The views expressed in any article published in this blog are the author's own and do not necessarily reflect the views of Joseph Foster or Bob Lupoli.

Tuesday, January 24, 2012

Revolving Door: Citigroup Replaces JPMorgan as White House Chief of Staff

Joe: two articles on the revolving door syndrome, it is a disease that is killing the country. –Bob
Citigroup Replaces JP Morgan as White House Chief of Staff

Here's a brief history of President Obama's White House chiefs of staff: Rahm Emanuel, a former Clinton official who then worked in investment banking, was replaced in 2010 by Bill Daley, a former Clinton official who then worked in investment banking, in order to run for Mayor of Chicago, a seat that had been held for 20 years by Bill Daley's brother.

Today, Bill Daley officially resigned and will return to Chicago and perhaps his career in investment banking. He'll be replaced with Jack Lew, a former Clinton official who then worked in investment banking, who has served as President Obama's Office of Management and Budget director since 2010 when he replaced Peter Orszag, a former Clinton official who now works in investment banking.

Much like Emanuel and Daley, Lew was plucked for his perceived ability to work with intransigent Republicans. Who will fill the Office of Management and Budget now? Given what we know from past hiring practices, pretty much any old Marxist professor will do.
I’m not a big fan of Bill Moyer (and Michael Winship) but what they wrote here is interesting, this is the first part of the article.

The Washington-Wall Street Revolving Door Keeps Spinning

We've already made our choice for the best headline of the year, so far: "Citigroup Replaces JPMorgan as White House Chief of Staff."

When we saw it on the website we had to smile -- but the smile didn't last long. There's simply too much truth in that headline; it says a lot about how Wall Street and Washington have colluded to create the winner-take-all economy that rewards the very few at the expense of everyone else.

The story behind it is that Jack Lew is President Obama's new chief of staff -- arguably the most powerful office in the White House that isn't shaped like an oval. He used to work for the giant banking conglomerate Citigroup. His predecessor as chief of staff is Bill Daley, who used to work at the giant banking conglomerate JPMorgan Chase, where he was maestro of the bank's global lobbying and chief liaison to the White House. Daley replaced Obama's first chief of staff, Rahm Emanuel, who once worked as a rainmaker for the investment bank now known as Wasserstein & Company, where in less than three years he was paid a reported eighteen and a half million dollars.

The new guy, Jack Lew -- said by those who know to be a skilled and principled public servant -- ran hedge funds and private equity at Citigroup, which means he's a member of the Wall Street gang, too. His last job was as head of President Obama's Office of Management and Budget, where he replaced Peter Orzag, who now works as vice chairman for global banking at -- hold on to your deposit slip -- Citigroup.

Still with us? It's startling the number of high-ranking Obama officials who have spun through the revolving door between the White House and the sacred halls of investment banking. Sure, you can argue that it makes sense that the chief executive of the nation would look to other executives for the expertise you need to build back from the disastrous collapse of the banks in the final year of the Bush Administration. Remember -- it was Bush and Cheney with their cronies in big business who helped walk us right into the blast furnace of financial meltdown, then rushed to save the banks with taxpayer money. That little fact seems to have been overlooked in the current primaries.

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