Why is Obama's former opponent (on ex comp bill) now Geithner's Chief of Staff?

[amborin]

"On Wednesday afternoon, as President Barack Obama was leaving the White House for a town hall meeting in California, he spoke for 15 minutes to reporters about the AIG controversy.

Responding to the rising rage over the $165 million or so in bonuses paid to executives at the bailed-out insurance firm, Obama noted that he was quickly developing policies to prevent future AIG-like catastrophes. And he slammed Wall Street's culture of "excess greed, excess compensation, excess risk taking." To demonstrate that he's committed to battling such greed, the president cited his work in the Senate to rein in executive compensation. Noting that he and Rep. Barney Frank (D-Mass.) had each introduced legislation on this front in 2007, Obama declared that "there were some people who attacked us, saying government has no business doing that."

One of Obama's opponents at that time was Mark Patterson, a lobbyist then for Goldman Sachs, the investment banking firm, which opposed the Frank-Obama initiative. Yet Patterson is now chief of staff to Treasury Secretary Timothy Geithner, the embattled point man in the Obama administration's endeavor to undo the notorious AIG bonuses. That is, a Washington influence-peddler who worked against Obama's effort to limit excessive corporate pay is now a key member of the Obama administration team that is supposed to contain excessive compensation in the AIG case and in general. ....



snip

Goldman Sachs has been one of the biggest beneficiaries of the federal rescue of AIG; the fallen insurance firm, which has received $170 billion in funds from the Federal Reserve, has used that money to pay Goldman Sachs $6.8 billion.)"

<snip>

<http://www.motherjones.com/politics/2009/03/geithner-aide-fought-ceo-pay-reform>

[billyoc]

1. "...a lobbyist then for Goldman Sachs..."

Geithner is from Goldman Sachs too. This is entirely consistent.

[stillcool]

3. Only if you consider Goldman Sachs..

the Federal Reserve..which it is.

[FrenchieCat]

4. Geithner never worked for a Wall Street Bank,

but you knew that.

[Jennicut]

11. Somehow that little fact seems to be missing

Who else are they going to get right now? At least he probably paid his taxes!

[asphalt.jungle]

5. where did this idea that Geithner comes from the private sector originate?

i find this strange.

[Occam Bandage]

7. Geithner never worked for Goldman Sachs. Please express your distaste for him without lying. nt

[billyoc]

13. Both Summers and Geithner are proteges of Robert Rubin.

[Occam Bandage]

14. "Geithner once worked for a guy who had previously worked for GS" isn't quite the same. nt

[MarjorieG]

2. He can work well with him. No trouble switching hats/goals. One of the few to want the job

because of too much scrutiny, so here we go with this one.

[FrenchieCat]

8. Pretty soon, everyone here at DU can go get a job working in the WH,

cause ain't no one gonna want to touch it with a 10 ft pole.

But unfortunately, many here wouldn't stand up to a vetting with media lights in their underwear either.

[terisan]

6. Executive Branch going to be renamed Goldman Sachs? Heading thru the Looking Glass? Whoa Alice!

[FrenchieCat]

9. Cute.....

But that's about it.

Hyperbole comes in all flavors.

[stillcool]

12. the Federal Reserve already is..

http://www.apfn.org/APFN/reserve2.htm

These interests control the Federal Reserve through about 300 stockholders:

* Rothschild Banks of London and Berlin
* Lazard Brothers Bank of Paris
* Israel Moses Seif Bank of Italy
* Warburg Bank of Hamburg and Amsterdam
* Lehman Brothers Bank of New York
* Kuhn, Loeb and Co. of New York
* Chase Manhattan Bank of New York
* Goldman, Sachs of New York
Because of the way the Reserve was organized, whoever controls the Federal Reserve Bank of New York controls the system, About 90 of the 100 largest banks are in this district.
Of the reportedly 203,053 shares of the New York bank:

* Rockefeller's National City Bank had 30,000 shares
* Morgan's First National Bank had 15,000 shares
* Chase National Bank had 6,000 shares
* National Bank of Commerce (Morgan Guaranty Trust) had 21,000 shares.
A June 15, 1978 Senate Report called "Interlocking Directorates Among the Major U.S. Corporations" revealed that five New York banks had 470 interlocking directorates with 130 major U.S. corporations:

* Citicorp (97)
* J.P. Morgan Co. (99)
* Chase Manhattan (89)
* Manufacturers Hanover (89)
* Chemical Bank (96)

According to Eustace Mullins, these banks are major stock holders in the Fed. In his book World Order, he said that these five banks are "controlled from London". Mullins said:
"Besides its controlling interest in the Federal Reserve Bank of New York, the Rothschilds had developed important financial interests in other parts of the United States ... The entire Rockefeller empire was financed by the Rothschilds."
A May, 1976 report of the House Banking and Currency Committee indicated: "The Rothschild banks are affiliated with Manufacturers Hanover of London in which they hold 20 percent ... and Manufacturers Hanover Trust of New York". The Report also revealed that Rothschild Intercontinental Bank, Ltd., which consisted of Rothschild banks in London, France, Belgium, New York, and Amsterdam, had three American subsidiaries: National City Bank of Cleveland, First City National Bank of Houston, and Seattle First National Bank. It is believed that the Rothschilds hold 53% of the stock of the U.S. Federal Reserve. Each year, billions of dollars are "earned" by Class A stockholders from U.S. tax dollars which go to the Fed to pay interest on bank loans.

[amborin]

16. altho

Lehman was allowed to go belly up

[stillcool]

20. but where did the money go?

bankrupting a corporation can be very lucrative. Especially if you own major shares in another one, or two, or three.

[mix]

10. it's a very tight subculture,

Wall Street looks after their own. Why Obama has fallen in with the big firms is beyond me. Geithner plays the front man in the public sector quite while though, with insider access via Rubin and Summers.

To play the public sector/private sector game (not the OP) to exonerate Geithner is weak. It's a revolving door at that level.

[MarjorieG]

15. So Obama should have changed all the personnel, come in like cowboy, in addition to saving the world

economy. Not a good sense of problem and what's possible at once.

[terisan]

17. Maybe just not have accepted so many campaign bucks from Goldman Sachs.

Sometimes those big donors can exert a big influence while just appearing to want to help.

[Occam Bandage]

19. Goldman Sachs itself did not donate a single dime. It can't, by law.

Goldman Sachs employees donated money, but I don't really think we should be saying "you cannot donate money to a politician if you work for a business."

[terisan]

24. Goldman Sachs employee average compensation 2008 - $360 000+. Gave Obama over $980 000.

Of course the Goldman Sachs employees made a lot more in 2006 when average compensation was over &600 000.

On the Obama campaign financing information: <http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638>


In the interest of good government I think it is important to consider that contributors may have some expectations of a candidate and I think it is wise to observe connections which may exist after office is attained--to be aware of the potential for undue influence.

I agree that we should not be saying "you can't donate to a politician if you work for a business."

[mix]

18. No, not like a cowboy, but he should have diagnosed the problem better.

The stimulus is too small, the budget is progressive, as are the new tax rates, so it's a mixed bag with Obama. I fear the wrong men are in charge of the crisis, starting with Geithner and Summers.

The economic crisis is global and far outpacing the efforts of politicians to deal with it, it is no different here.

I am willing to be patient however. And there was a second New Deal.

[stillcool]

21. A larger stimulus would have never passed...

and this upcoming budget bill is bound to be sliced and diced. No one bothers to call their representatives, so they can vote anyway they want. All they have to worry about is the next election, and by then who will remember or care? People really aren't interested in their government. It's the show, and the in-fighting that is so much fun.

[mix]

22. I have a feeling circumstances might force everyone's hand.

nt

[brentspeak]

23. Goldman practically runs the government, and Obama is the latest to give them our tax $$