Monday, June 05, 2017

Revolving Doors - Transition Teams - 4th Branch's Attack on Trump



Started Off at Naked Capitalism Revolving Door Continues then fell through the comments to wind up at the more important and illuminating treatment found at The New Republic The Most Important Wikileak Revelation. 

New Republic |  The wing of the Democratic Party concerned about personnel decisions made its opinion known almost two years ago. Dan Geldon, now chief of staff to Senator Elizabeth Warren, met with Dan Schwerin, a top adviser to Clinton’s campaign, in January 2015. According to an email follow-up with Podesta and others, Geldon “was intently focused on personnel issues, laid out a detailed case against the Bob Rubin school of Democratic policy makers.” He was also “very critical of the Obama administration’s choices.”

The “Bob Rubin school” is named for the former top executive at Goldman Sachs and Citigroup and first Clinton administration Treasury secretary. It is composed precisely of the kinds of Democrats that the Warren wing opposes on domestic policy, particularly on financial matters. In the Obama administration, that school won out. Froman, chief of staff to Rubin at Treasury, gave options for Treasury secretary that ranged from Rubin himself to Summers and Geithner, two of his key protégés. In another 2008 email Rubin imagined for himself a “Harry Hopkins” position in the Obama administration, referring to Franklin Roosevelt’s top adviser.

The Rubin school dictated the Obama administration’s light-touch policy on bank misconduct (which resulted in no serious legal or fiduciary consequences for the major players) and its first-term approach to the financial crisis (which was defined by a stimulus package that even at the time was criticized for being woefully inadequate, as well as a premature turn to budget-cutting). These are exactly the flaws that Geldon, Warren’s emissary, stressed. According to Schwerin, he “spoke repeatedly about the need to have in place people with ambition and urgency who recognize how much the middle class is hurting and are willing to challenge the financial industry.”