There’s simply too much truth in the headline "Citigroup Replaces JPMorgan as White House Chief of Staff" to smile for long-- it says a lot about how Wall Street and Washington have colluded to create the winner-take-all economy that rewards the very few at the expense of everyone else.
All this brings back memories of Hank Paulson, doesn’t it? Hank Paulson, the $700 million man who became secretary of the treasury for President Bush. Paulson had been head of Goldman Sachs, the rich investment bank. As his successor at Goldman Sachs, Paulson chose Lloyd Blankfein. Several times, according to Bloomberg News, Rolling Stone, and Paulson’s own memoir, the treasury secretary made sure Blankfein and Goldman got privileged inside information.
But Bush and Cheney aren’t the only ones to have a soft spot for financiers. President Obama may call bankers “fat cats” and stir the rabble against them with populist rhetoric when it serves his interest, but after the fiscal fiasco, he allowed the culprits to escape virtually scot-free. When he’s in New York he dines with them frequently and eagerly accepts their big contributions. Like his predecessors, his administration also has provided them with billions of taxpayer dollars – low-cost money that they used for high-yielding investments to make big profits. The largest banks are bigger than they were when he took office and earned more in the first two-and-a-half years of his term than they did during the entire eight years of the Bush administration. That’s confirmed by industry data.