Washington Babylon — October 14, 2009, 12:47 pm

Obama’s Gourmet Kitchen Cabinet

From Bloomberg:

Some of Treasury Secretary Timothy Geithner’s closest aides, none of whom faced Senate confirmation, earned millions of dollars a year working for Goldman Sachs Group Inc., Citigroup Inc. and other Wall Street firms, according to financial disclosure forms.

The advisers include Gene Sperling, who last year took in $887,727 from Goldman Sachs and $158,000 for speeches mostly to financial companies, including the firm run by accused Ponzi scheme mastermind R. Allen Stanford. Another top aide, Lee Sachs, reported more than $3 million in salary and partnership income from Mariner Investment Group, a New York hedge fund. As part of Geithner’s kitchen cabinet, Sperling and Sachs wield influence behind the scenes at the Treasury Department, where they help oversee the $700 billion banking rescue and craft executive pay rules and the revamp of financial regulations. Yet they haven’t faced the public scrutiny given to Senate-confirmed appointees, nor are they compelled to testify in Congress to defend or explain the Treasury’s policies.

“These people are incredibly smart, they’re incredibly talented and they bring knowledge,” said Bill Brown, a visiting professor at Duke University School of Law and former managing director at Morgan Stanley. “The risk is they will further exacerbate the problem of our regulators identifying with Wall Street.” While it isn’t unusual for Treasury officials to come from the financial industry, President Barack Obama has been critical of Wall Street, blaming its high-risk, high-pay culture for helping cause the financial-market meltdown.

At The Atlantic, Daniel Indiviglio writes:

I have a few comments about this. First, what exactly is it that Bloomberg is proposing? Should every employee of the Treasury be confirmed by the Senate and testify in Congress? Clearly, that’s madness…

It sounds to me like Bloomberg is joining the growing chorus of people who object to Wall Street’s influence in Washington. If lawmakers are really that worried about the Wall Street connection, then they could always require that no one working for the government was ever compensated directly or indirectly by Wall Street. That would solve the problem…

So what about the problem that Wall Street might have too much influence in Washington? I understand the concern. I just think the experience those individuals bring might outweigh their allegiance to big finance.

I have a few comments. First, Indiviglio’s remarks are not terribly surprising given that before journalism, his bio says, “Daniel spent several years as an investment banker and consultant for financial services firms. Before that, he graduated from Cornell.” He’d fit in well with Obama’s economic team.

Second, his argument is a total straw dog, most preposterously when he suggests that even noting the Obama team’s ties to financial firms is tantamount to calling for a ban on government employment by former Wall Streeters. It’s an easy argument for Indiviglio to shoot down but since no one, including Bloomberg, has proposed anything like that, he needn’t have bothered.

Third, the problem is not that members of Obama’s economic team have ties to Wall Street, it’s that so many of them have ties to Wall Street, especially key advisers shaping policy. To think that their experience and background doesn’t impact their view on policy — and, yes, their allegiances — is naive in the extreme. FDR’s cabinet had conservatives and populists, corporatists and trust-busters. The problem with Obama’s team is the ideological and political consensus they share and the lack of any real counterweight.

Share
Single Page

More from Ken Silverstein:

Commentary November 17, 2015, 6:41 pm

Shaky Foundations

The Clintons’ so-called charitable enterprise has served as a vehicle to launder money and to enrich family friends.

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Get access to 165 years of
Harper’s for only $45.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

February 2017

Remainers

= Subscribers only.
Sign in here.
Subscribe here.

JB & FD

= Subscribers only.
Sign in here.
Subscribe here.

Blood and Soil

= Subscribers only.
Sign in here.
Subscribe here.

A Grim Fairy Tale

= Subscribers only.
Sign in here.
Subscribe here.

Trump: A Resister’s Guide

= Subscribers only.
Sign in here.
Subscribe here.

Little Things

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Post
Illustration (detail) by Steve Brodner
Article
The Patient War·

= Subscribers only.
Sign in here.
Subscribe here.

(1) To need his glasses and be struck by an awareness that they are not at hand, an ordinary enough circumstance for Frederick Douglass, except sometimes it’s accompanied by a flash of extraordinary dread. If not quite panic, certainly an unease disproportionate to a simple recurring situation. Dread that may be immediately extinguished if he locates his horn-rimmed, owlish-eyed spectacles exactly where he anticipated they should be. He sees them and almost sighs. Nearly feels their slightly uncomfortable weight palpable on his nose. Finding the glasses enough to reassure him that he remains here among the living in this material …
Photograph (detail) © Andrew Quilty/Oculi/Redux
Article
Little Things·

= Subscribers only.
Sign in here.
Subscribe here.

(1) To need his glasses and be struck by an awareness that they are not at hand, an ordinary enough circumstance for Frederick Douglass, except sometimes it’s accompanied by a flash of extraordinary dread. If not quite panic, certainly an unease disproportionate to a simple recurring situation. Dread that may be immediately extinguished if he locates his horn-rimmed, owlish-eyed spectacles exactly where he anticipated they should be. He sees them and almost sighs. Nearly feels their slightly uncomfortable weight palpable on his nose. Finding the glasses enough to reassure him that he remains here among the living in this material …
Photograph (detail) of miniatures by Lori DeBacker by Thomas Allen
Article
Blood and Soil·

= Subscribers only.
Sign in here.
Subscribe here.

(1) To need his glasses and be struck by an awareness that they are not at hand, an ordinary enough circumstance for Frederick Douglass, except sometimes it’s accompanied by a flash of extraordinary dread. If not quite panic, certainly an unease disproportionate to a simple recurring situation. Dread that may be immediately extinguished if he locates his horn-rimmed, owlish-eyed spectacles exactly where he anticipated they should be. He sees them and almost sighs. Nearly feels their slightly uncomfortable weight palpable on his nose. Finding the glasses enough to reassure him that he remains here among the living in this material …
Illustration (detail) by Nate Kitch
Article
JB & FD·

= Subscribers only.
Sign in here.
Subscribe here.

(1) To need his glasses and be struck by an awareness that they are not at hand, an ordinary enough circumstance for Frederick Douglass, except sometimes it’s accompanied by a flash of extraordinary dread. If not quite panic, certainly an unease disproportionate to a simple recurring situation. Dread that may be immediately extinguished if he locates his horn-rimmed, owlish-eyed spectacles exactly where he anticipated they should be. He sees them and almost sighs. Nearly feels their slightly uncomfortable weight palpable on his nose. Finding the glasses enough to reassure him that he remains here among the living in this material …
Illustration (detail) by Matthew Richardson

Chances that an American knows the position of his or her senators on health-care reform:

1 in 3

Climate experts proposed creating a fleet of cloud-seeding yachts that will pump water vapor into the atmosphere to thicken global cloud cover, thereby reflecting more sunlight, in order to counteract the effects of global warming.

In San Antonio, a 150-pound pet tortoise knocked over a lamp, igniting a mattress fire that spread to a neighbor’s home.

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

Who Goes Nazi?

= Subscribers only.
Sign in here.
Subscribe here.

By

"It is an interesting and somewhat macabre parlor game to play at a large gathering of one’s acquaintances: to speculate who in a showdown would go Nazi. By now, I think I know. I have gone through the experience many times—in Germany, in Austria, and in France. I have come to know the types: the born Nazis, the Nazis whom democracy itself has created, the certain-to-be fellow-travelers. And I also know those who never, under any conceivable circumstances, would become Nazis."

Subscribe Today