Monday, July 06, 2009

Well at least Washington's hiring....

One of my criticisms of both the Bush administration and the Obama administration has been their reliance on Wall Street insiders to "fix" Wall Street. It's difficult for someone who has worked in the industry for 20 years to suddenly see the light and push for real reform on Wall Street. It's not a new phenomenon for Wall Streeters to take up residence in Washington, but the flow of "talent" from Manhattan to K-Street has been surprising. Via consider the following hires:

* Robert Hormats, Vice Chairman of Goldman Sachs, is to be installed as Under Secretary of Economics, Business, and Agricultural Affairs.

• Jacob Lew, Chief Financial Officer of Citigroup Alternative Investments Group, as Deputy Secretary of State(Lew’s dept. lost $509 million in the Q1 2008)

• Michael Froman, Citigroup, Deputy National Security Adviser for International Economic Affairs. Froman was formerly Chief of Staff to Robert Rubin at Treasury, before following him to Citi.

• Froman’s deputy, David Lipton, ran Citi’s global country risk management effort.

• Lewis Alexander, Citigroup’s chief economist and now Counselor to Treasury Secretary Timothy Geithner

• Neal Wolin, President and COO, Hartford Insurance Company, Property and Casualty Group now Deputy Treasury Secretary (Hartford received $3.4 billion in TARP funds).

• Gary Gensler, Goldman Sachs partner, now Chairman of the Commodity Futures Trading Commission

• Mark Patterson, Goldman Sach’s lobbyist, now Treasury Chief of Staff

The tinfoil hat crowd will notice a couple of names pop up frequently - Citi and Goldman.


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