Loyalty's for Chumps on The Street: Bankers’ Man in 2008, Obama's been Dumped by the Money Men
One thing you can say about the financial industry. It has no sense of loyalty.
Back in 2008, most of the biggest contributors to presidential candidate Barack Obama were financial companies. According to the campaign fund tracking website Open Secrets, after the $1.65 million donated by a political action committee (PAC) for the University of California, the next biggest contributor was a PAC for the giant bank, Goldman Sachs, whose employees ponied up a reported $1 million. Right up there among the top contributors to the Obama campaign that year were two other of the nation’s top banks too: JP Morgan Chase, whose employee PAC gave $809,000, and Citigroup, which gave $737,000. Two more big banks, UBS and Morgan Stanley, as well as General Electric, which less than a year later bought a bank to enable itself to benefit from the government’s largesse in doling out billions of “rescue” dollars under the Troubled Assets Relief Program (TARP), were among Obama’s top 20 campaign donors, handing over $533,000, $512,000 and 530,000 respectively to support his election.
Obama, after winning the presidency, repaid all that campaign largesse, appointing bank industry lackeys and executives to top positions. He made Timothy Geithner, who as head of the New York Federal Reserve branch during the Bush administration, had ignored the scandalous derivatives scandals that brought on the financial crash, his Treasury Secretary, and Lawrence Summers, who as Treasury Secretary under President Bill Clinton, had pushed for the deregulation of derivatives, and for allowing banks to merge with investment banks, and who during the Bush years earned millions as a consultant to the hedge fund industry and from speaking fees provided by Wall Street banks, got the post of head of Obama's Council of Economic Advisors. Meanwhile, GE's chairman and CEO, Jeffrey Immelt, who famously exported thousands of GE jobs abroad, was given the post of White House Jobs "Czar."
Given the ease with which the Obama administration allowed the financial industry to subvert the Congressional legislation designed to reform the banking industry in the wake of the financial crisis of 2008-9, and the White House decision not to prosecute a single bank executive for the wholesale destruction of the US and global economy, one might think that Wall Street would have rewarded Obama with more money for his re-election campaign. Instead the industry, seeing even more advantage in having a Republican in the White House, and particularly one of its own -- venture capitalist and multi-millionaire Mitt Romney, has switched its support over to his opponent.