New Economic Death Squad
Posted on Friday, January 7th, 2011 at 11:48 am
By David DeGraw, AmpedStatus
“Business Roundtable has a strong relationship with Mr. Daley and has worked with him in the past on many issues important to both business and the broader economy, such as the successful ratification of NAFTA. Mr. Daley can continue to be an important partner in our fight…. We look forward to continuing our work with Mr. Daley in his new position.”
The revolving door shouldn’t spin again for William Daley
“A Daley selection, which has been hailed by banks, would plant an official emissary from Wall Street into one of the most important jobs in Washington.
The President once told a meeting of bankers that he was ‘the only thing standing between you and the pitchforks.’ That apparently wasn’t good enough. Picking Daley would send the message that the pitchforks–normal people–matter less than the continued flow of campaign donations from the uber-wealthy. Barack Obama raised $39 million from the finance, insurance and real estate sector in his 2008 bid for President, the most raised from this sector by anyone in one cycle seeking political office in the United States ever.
Even more problematic than the need to corral donors for 2012 is that Daley’s presence would allow him to control the time of the President. Daley could choose who the President sees and what information gets to the President. Based on the praise the financial sector has for the Daley selection, it is clear who those people are and what that information would be.” [read more]
Obama’s New Chief of Staff a Top Banker With Strong Chamber Ties
Obama has named Bill Daley his new chief of staff… a current JPMorgan Chase executive…. Daley has strong ties to the Chamber of Commerce, which opposed the financial reform bill that was a cornerstone of the administration’s agenda last year. From Kevin Connor, co-director the Public Accountability Initiative, a nonprofit research organization:
‘From 2005 to 2007, he co-chaired a Chamber of Commerce committee on financial (de)regulation. The ‘Commission on the Regulation of Capital Markets in the 21st Century’ eventually became the Chamber’s Center for Capital Markets Competitiveness, which played a prominent role in attacking derivatives regulation and consumer protections last year. The Hill called the group one of the ‘loudest voices on financial legislation’ —and they weren’t exactly singing the praises of reform efforts.
Daley also signed on to a March 2009 Chamber manifesto on ‘Restoring Confidence in US Capital Markets,’ the Chamber’s opening PR move in the financial reform debate.’
The new chief of staff has publicly opposed the concept of an independent consumer financial protection agency….” [read more]
Pentagon delays F-35, buys more Boeing fighters
“The Pentagon overhauled the Lockheed Martin Corp F-35 fighter program for the second time in a year and said it would buy 41 Boeing Co F/A-18 warplanes over the next three years….” [read more]
“As director of the NEC. Sperling was a principal negotiator with then-Treasury Secretary Lawrence Summers of the Financial Modernization Act of 1999, also known as the Gramm-Leach-Bliley Act. Gramm-Leach-Bliley repealed large portions of the depression-era Glass-Stegall Act allowing banks, securities firms and insurance companies to merge.” [ read more]
Gene Sperling Made Millions On Wall Street As Economy Tanked
“Gene Sperling, a leading contender for a top economic post in the White House, made millions on Wall Street even as the economy faltered. The adviser to Treasury Secretary Tim Geithner is near the top of President Barack Obama’s list of candidates to replace Larry Summers as director of the National Economic Council… By appointing Sperling, the president would fuel perceptions that his administration is overly close to Wall Street, installing a policymaker who has not only overseen monumental deregulation of the financial sector, but has also Sperling worked under Rubin in the early Clinton years, when Rubin was NEC director. In Clinton’s second term, during Sperling’s own tenure as NEC director, Congress repealed the Glass-Steagall Act, prompting a rule-easing that allowed Citigroup to become the world’s largest financial services company.
Citigroup later required a $45 billion taxpayer bailout.
‘He saw nothing at all wrong with the pattern of growth we had in place in the ’90s,’ Dean Baker, co-director of the Center for Economic and Policy Research in Washington, said of Sperling. ‘He was not thinking at all critically, seeing that there were even any issues here.’” [read more]
Ouch, that’s a bitter pill for Progressives to swallow. And Mother Jones’ David Corn has come out in support of Gene Sperling.
– David DeGraw is the founder and editor of AmpedStatus.com. He is the author of The Economic Elite Vs. The People of the United States. His new book is The Road Through 2012.