“toxic and destructive” Goldman Sachs and the Obama administration
from Edward Fullbrook
As you may have heard in the news, yesterday one of the key directors of Goldman Sachs, Greg Smith, published in the New York Times his long letter of resignation. It begins:
TODAY is my last day at Goldman Sachs. After almost 12 years at the firm — first as a summer intern while at Stanford, then in New York for 10 years, and now in London — I believe I have worked here long enough to understand the trajectory of its culture, its people and its identity. And I can honestly say that the environment now is as toxic and destructive as I have ever seen it.
Given the degree of attention that the international media is today giving this mini event, it seems appropriate to republish here a table from my RWER paper, published on Monday, “The Political Economy of Bubbles”. The table below, which is largely based on an article by fflambeau, details 32 relationships, financial and otherwise, between Goldman Sachs people (“morally bankrupt” says Smith) and the Obama Administration.
Exhibit 8: The revolving door between Goldman Sachs and the Obama Administration
Relation to Goldman Sachs
and its offshoot the Hamilton Project
Position in Obama Administration
1 Obama, Barack Goldman Sachs employees contributed $994,795 to Obama’s presidential bid. President 2 Biden, Joe Goldman has been a major campaign contributor to Biden. Vice President 3 Altman, Roger Hamilton Project member and was Assistant Secretary of the Treasury under “Mr. Goldman Sachs”, Robert Rubin. He is “one of those power brokers with all encompassing contacts within the Democratic Party”. 4 Brainard, Lael Associate and protégé of Robert Rubin. United States Under Secretary of the Treasury for International Affairs 5 Buffett, Warren He has invested billions in Goldman Sachs. He is one of Obama’s fundraisers and economic advisers. 6 Clinton, Hillary In 2008 she received $415,000 (inflation adjusted) from Goldman Sachs. United States Secretary of State 7 Craig, Gregory He left the White House to become Goldman Sach’s chief lawyer in defending against its SEC suit. He was Obama’s White House Counsel. 8 Donilon, Thomas He was a lawyer at O’Melveny and Myers representing meltdown clients including Goldman Sachs. Deputy National Security Adviser to Barack Obama 9 Dudley, Bill He joined Goldman in 1986 and was partner and managing director until 2007. Federal Reserve Bank of New York President since January 2009 10 Elmendorf, Douglas He previously was the Director of the Hamilton Project. He became Obama’s Director of the Congressional Budget Office in January 2009. 11 Emanuel, Rahm Received large contributions from Goldman Sachs as a Congressman and was on a $3,000 a month retainer from Goldman while he worked as Bill Clinton’s chief fund raiser. Obama’s Chief of Staff, the very first person Obama selected to be in his administration. 12 Farrell, Diana She worked for two years at Goldman Sachs. Deputy Director of the National Economic Council 13 Friedman, Stephen He worked for much of his career with Goldman Sachs, holding numerous executive roles and still serves on the company board. Chairman of Obama’s Foreign Intelligence Advisory Board 14 Furman, Jason Former Director of the Hamilton Project He was director of economic policy for the Obama Presidential Campaign. 15 Fudge, Anne Trustee of the Brookings Institution within which the Hamilton Project is embedded Member of Obama’s budget deficit reduction committee 16 Gallogly, Mark He is member of the Hamilton Project’s advisory council. He is a member of President Barack Obama’s President’s Economic Recovery Advisory Board. 17 Geithner, Timothy A protégé of both Henry M. Paulson Jr., a former chief executive of Goldman Sachs, and Robert Rubin, former co-chairman of Goldman Sach. He was Obama’s Secretary of the Treasury. 18 Gensler, Gary He was a Goldman Sachs partner. Obama’s Commodity Futures Trading Commission head. 19 Greenstone, Michael Director of the Hamilton Project He was an economic adviser position to Obama. 20 Hormats, Robert 27 years at Goldman Sachs, including as the Vice Chairman of Goldman’s international arm. The top economics official at Obama’s State Department 21 Kashkari, Neel. Former Vice President of Goldman Sachs He worked for Obama on TARP oversight. 22 Kornbluh, Karen She was Deputy Chief of Staff to Robert Rubin. Obama’s Ambassador to the OECD 23 Lew, Jacob He sits on the Brookings-Rubin funded Hamilton Project Advisory Board. United States Deputy Secretary of State for Management and Resources 24 Orszag, Peter He was the founding director of Goldman Sachs’ Hamilton Project Obama’s Budget Director 25 Patterson, Mark Former lobbyist for Goldman Sachs verseer of TARP bailout funds, $10 billion of which went to Goldman. 26 Rattner, Steve A billionaire financier who sits on the Advisory Council of the Goldman funded Hamilton Project. He oversaw the Obama Administration’s rescues of General Motors and Chrysler, 27 Reischauer, Robert D. He has close ties to Robert Rubin and sits on the Advisory Council of the Goldman funded Hamilton Project. Appointed by Obama as one of the two public trustees of the Social Security and Medicare trust fund. 28 Rivlin, Alice She is a member of the Hamilton Project board and of the board of directors of the New York Stock Exchange. Appointed by Obama to his “deficit reduction commission”. 29 Rubin, James Son of Robert Rubin (see next entry). Served as a headhunter for Obama 30 Rubin, Robert 26 years at Goldman Sachs and its former co-chairman. Also former Chairman of Citigroup. Along with Goldman Sachs, he funded the Hamilton Project. Regarded by insiders as the de facto President of the United States. 31 Sperling, Gene In 2008 he was paid $887,727 by Goldman Sachs as a consultant. Advisor to Obama’sTreasury Secretary Tim Geithner on financial bailouts and other matters. 32 Storch, Adam Former Vice President of Goldman Sachs Obama appointed him Managing Executive of the Security and Exchange Commission’s Division of Enforcement. 32 Summers, Larry He landed a big-time job at Goldman Sachs after crashing as Harvard’s President. In 2008 Goldman Sachs paid him $135,000 for a single speech. Obama’s chief economic adviser and head of the National Economic Counsel. Source: compiled from “A List of Goldman Sachs People in the Obama Government”, by fflambeau, April 27, 2010, http://my.firedoglake.com/fflambeau/2010/04/27/a-list-of-goldman-sachs-people-in-the-obama-government-names-attached-to-the-giant-squids-tentacles/