Friday, April 10, 2009

The Official End of Obama’s Honeymoon

But Summers, a leading architect of the administration’s economic policies and response to the global recession, appears to have collected the most income. Financial institutions including JP Morgan, Citigroup, Goldman Sachs, Lehman Brothers and Merrill Lynch paid Summers for speaking appearances in 2008. Fees ranged from $45,000 for a Nov. 12 Merrill Lynch appearance to $135,000 for an April 16 visit to Goldman Sachs, according to his disclosure form.

via Summers Raked in Speaking Fees from Wall Street | 44 | washingtonpost.com.

So I guess that $45,000 speaking fee from Merrill Lynch wasn’t technically a bribe because Summers wasn’t named to Obama’s Economic Transition Team until November 24 — a full twelve days later. I’m sure Summers had absolutely no inkling whatsoever that he was going to be one of the key advisers to the new administration back on November 12.

It likewise makes perfect sense that Merrill Lynch, a company just months removed from having to be rescued from bankruptcy by an eleventh-hour, pseudo-state-subsidized buyout by Bank of America, would decide to spend $45,000 on a speaking appearance by Larry Summers because, well, they really valued his economic expertise and his proven ability to rally the troops with his stirring rhetoric. It certainly had nothing to do with the fact that a) it was eight days after a Democrat was elected to the presidency, and b) Summers had a long history of being one of the key policymakers in Democratic Party politics, and c) Merrill was absolutely not going to survive more than a few more months unless taxpayers forked over another twenty billion or so to cover the giant hole in Merrill’s balance sheet that was, at that time, still being hidden from Bank of America and its shareholders.

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