Friday-night doc dump: Summers took millions from hedge funds, TARP recipients
posted at 1:52 pm on April 4, 2009 by Ed Morrissey
The Obama administration has mastered the art of the Friday Night Disclosure. They tried to avoid media scrutiny over the revelation that National Economic Council chair Lawrence Summers made millions from the same people demonized by Barack Obama and the Democrats for the economic collapse:
Lawrence Summers, director of President Barack Obama’s National Economic Council, earned millions working at a hedge fund and speaking to banks such as Citigroup Inc. that later received taxpayer bailout money.
Hedge fund D.E. Shaw & Co. paid Summers more than $5 million in salary and other compensation in the past 16 months, according to a financial disclosure form released by the White House yesterday. Summers served as a managing director at the New York-based firm. Summers, a former Treasury secretary, also earned more than $2.7 million in speaking fees.
“There was considerable interest in hearing his economic insights,” said Ben LaBolt, a White House spokesman. At the White House, Summers “has been at the forefront of this administration’s work to shore up our nation’s financial system and to put in place a regulatory framework that will strengthen the financial system,” LaBolt said.
The disclosure statement for Summers and several other top administration officials illustrates the quandary Obama and his predecessors have faced in their personnel decisions because “powerful people are almost always also rich people” who have earned money from private interests, said Steffen Schmidt, a political science professor at Iowa State University in Ames, Iowa.
Obama’s “choice going forward is to choose unknowns of modest means who may be less controversial in terms of their connections,” Schmidt said. “Except those people would be far less knowledgeable and thus less of an asset to fix these very same urgent problems.”
You know, the same argument could be made with, oh, AIG and the people they need to retain to fix their problems. I don’t really have a problem with Obama hiring Summers; in fact, I think Summers would have made a much better choice than Tim Geithner as Treasury Secretary. Unfortunately, Obama didn’t have the guts to face the flak over the silly controversy Summers inadvertently stoked at Harvard a few years back.
However, the Obama administration appears to want to eat their cake and have it, too. They spent the last few weeks stoking outrage over retention bonuses that had been clearly disclosed months ago, and which went to people AIG needs to unwind their Financial Products division. It’s completely hypocritical.
So is the Friday Night Disclosure, as Tommy Christopher points out:
The White House did a Friday left-cheek sneak yesterday, announcing that Executive Branch Financial Disclosure reports are now available through an online ordering process. Making hay out of these reports is the nature of the beast in politics, and by dumping them on a Friday, they blunt the impact of criticisms like this …
It also makes a joke out of claims to “transparency”, but the Friday Night Disclosure has a long and bipartisan tradition. It’s not much Hope and Change, though, and Obama promised to stop doing business as usual during his campaign.
Blowback
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Can we get the pitchforks out yet?
Viper1 on April 4, 2009 at 1:54 PM
They could dump it on monday and it’d get no coverage.
lorien1973 on April 4, 2009 at 1:54 PM
And the only thing keeping the pitchfork wielders from Mr. Summers is who?
Massive eruption of national outrage starting in 5…4…3…
Sweet_Thang on April 4, 2009 at 1:56 PM
What a fraud.
Firebird on April 4, 2009 at 1:59 PM
…………hold on my phone is ringing………it’s Rezko and Blago……….they want to use Obama’s Auntie as a “reference” with their Parole Officers. Look here’s the bottom line – EVERYTHING that The Messiah touches, does, says or contemplates is a LIE. He’s a crook – worse, he’s a Chi-Town Crook and his “Team” are all crooks too. The only one you can trust on his team is TOTUS.
Cinday Blackburn on April 4, 2009 at 2:01 PM
I look forward to Timmy explaining to Congress why he needs to partner with hedge funds (and only big hedge funds) as part of TARP II.
Wethal on April 4, 2009 at 2:02 PM
So true. And the most frustrating part of this nightmare we are living. I’m not sure it’s worth it to get upset anymore. The odds are so stacked against the right that saving your sanity seems to be the best thing to do at this point.
sherry on April 4, 2009 at 2:02 PM
As I sit here reading this, my blood pressure is going through the roof. I just lost my college funds for my youngest son, funds that my wife and I worked decades for. My business is as slow as I have been over the last few decades. My wife is an self employed Architect, and her business is very slow.
These people should be tarred and feathered. We have the most corrupt & dishonest humans alive running our government. What a sham.
Keemo on April 4, 2009 at 2:03 PM
232 years ago they would have done exactly that, dont see why it shouldnt apply today!!
Viper1 on April 4, 2009 at 2:05 PM
The Friday Night Disclosure – another regular HA feature opportunity for ya Ed.
misslizzi on April 4, 2009 at 2:05 PM
sherry: don’t give up, ever. go back & listen to some of Winston Churchill’s speeches. you will be inspired. or go watch a john wayne movie.
kelley in virginia on April 4, 2009 at 2:06 PM
One word/acronym: PETA
misslizzi on April 4, 2009 at 2:07 PM
keemo: your son will be able to go to college, even if he has to go part time.
i understand your frustration as the same has happened to our funds here.
but look, we have no alternative but to keep the faith. what are you going to do? roll over?
kelley in virginia on April 4, 2009 at 2:08 PM
My bad, how could I have overlooked the obvious… lmao!
Viper1 on April 4, 2009 at 2:10 PM
Fight Back!
Viper1 on April 4, 2009 at 2:10 PM
you have to wait for the 2012 Hope&Change 2.0 release. to fix all currently known problems, the 1.67 patch will be out by monday, and will include another smashing diplomatic success in turkey.
sesquipedalian on April 4, 2009 at 2:12 PM
No joke, I can see right through these jokers.
ThePrez on April 4, 2009 at 2:12 PM
Beware the Government/Financial Axis of Weasels.
Treasury Secretary Timothy Geithner, unlike Henry Paulson, doesn’t hail from Wall Street, but he’s one more example of how titans of government swiftly come to sympathize with titans of finance. They slip in and out of each other’s worlds, promote each other to the top, and mystify their work to convince the uninitiated that no one else can do it.
They easily have their way with compromised regulators ready to look the other way as a small sliver of the population plays high-risk poker with other people’s money. This sliver then has its way again unwinding the damage caused. Huge sums are pocketed on both ends.
- Margaret Carlson
MB4 on April 4, 2009 at 2:12 PM
If it looks like corruption, and smells like corruption, it probably ain’t charity.
Skandia Recluse on April 4, 2009 at 2:13 PM
Another hypocritical democrat — only Obama and the drive-by media stands between him and the pitchforks. And Obama tries to demonize citizens while hiding blame on beaurocrats who do the same thing! When will we be outraged enough about this stealing of our country and doublespeak to stand up and do something about it? I say, start with joining the Tea Party in your area on April 15. Let’s make it so big that even the drive-by’s can’t ignore it.
Christian Conservative on April 4, 2009 at 2:14 PM
MB4 on April 4, 2009 at 2:18 PM
It’s unfettered capitalism cons support.
Stay with your priciples and don’t be hypocrites.
getalife on April 4, 2009 at 2:19 PM
Democrats repealed Glass-Steagall.
Wethal on April 4, 2009 at 2:21 PM
AIG lost billions of dollars and asked to be bailed out. D.E. Shaw made billions of dollars and asked for nothing. Aside from their both being financial firms and both having three syllables, I fail to see how they’re suddenly interchangeable.
Obama clearly shot himself in the foot by demanding a certain level of purity in his appointees. But conflating all financial firms, whether profitable or insolvent, does no one any favors.
And I don’t think Obama chose to stoke the AIG controversy. Once it was out there, he just took the path of least resistance. Not good, but not the same thing.
calbear on April 4, 2009 at 2:22 PM
Thanks and yes, I will never give up. Some days are easier to take than others. I work out my frustration on the treadmill. You’d be amazed how fast you can run when you imagine a liberal breaking their leg and waiting six weeks to get it set when we have national health care. I crank up the speed and enjoy the image. Mean and evil, but it works.
sherry on April 4, 2009 at 2:22 PM
Nuance.
More like “rich people are almost always also powerful people”.
David Petraeus is powerful but I doubt that he is rich. Mother Teresa was powerful but I don’t think she was even what most people in this country would even consider up to the level of poor.
MB4 on April 4, 2009 at 2:23 PM
the most ethical administration evah! Obama is right he is arrogant, not the American people.. what an insult.
kringeesmom on April 4, 2009 at 2:23 PM
THESE CROOKS AND LIARS WILL PAY.
marklmail on April 4, 2009 at 2:23 PM
Larry Summers also led the Harvard endowment into derivative investing, with disastrous results.
Frightening Trading Practices
PattyJ on April 4, 2009 at 2:24 PM
Watch it with that “veiled hate speech.” :)
ThePrez on April 4, 2009 at 2:25 PM
Of course. Both parties took money from the bailed out institutions.
Are they all corrupt?
getalife on April 4, 2009 at 2:25 PM
An axis of weasles – Bill Clinton, Phil Gramm, et all.
BTW, getalife, shouldn’t you be on your way to BCT by now? Your President needs you in Afghanistan. Don’t be like the French and let your President down.
MB4 on April 4, 2009 at 2:26 PM
More so than not.
MB4 on April 4, 2009 at 2:27 PM
http://www.youtube.com/watch?v=ElDtH7rP3T0
RealDemocrat on April 4, 2009 at 2:28 PM
Conservative Christian: Why would you want to get the pitchforks out for Larry Summers? Where does your anger lie? If you are angry about the double standard that’s fine, if you are angry about democrats making lots of money while demonizing others, how is your attitude any different? As for me the AIG workers should not have been demonized for earning their wages and bonuses nor should Larry Summers. Jesus said we should be content with what we earn and it is none of our business what others earn.
chemman on April 4, 2009 at 2:29 PM
One of the reasons I am a proud Independent that does not blindly support the two corrupt parties.
getalife on April 4, 2009 at 2:30 PM
And what would be some examples of Democratic corruption? There are certainly a multitude of examples from which to choose. Which do you consider the most egregious, of say, the Clinton administration?
Wethal on April 4, 2009 at 2:32 PM
lorien1973 on April 4, 2009 at 1:54 PM
Yup.
artist on April 4, 2009 at 2:34 PM
Ed are you joking here?
Geithner’s dirty little secret
econavenger on April 4, 2009 at 2:37 PM
Who did you vote for for President in 2004?
Del Dolemonte on April 4, 2009 at 2:39 PM
It is very much our concern when they don’t actually earn it. AIG has sucked at the taxpayer’s “teat” to the tune of over 150 BILLION and Summers “earnings” were payoffs for influence peddling past and future.
MB4 on April 4, 2009 at 2:39 PM
Yes. So let them rule your life, and you can cheerlead as they do so, okay?
lorien1973 on April 4, 2009 at 2:39 PM
I would say the money donated to politicians in both parties by the bailed out institutions over the last 10 years shows the flaw and corruption in our system of government.
Then you have the military contracts of billions lost in fraud.
It’s been well documented but will tough to change when the politicians get reelected using these funds from these companies. The costs for House, Senate and Presidential campaigns are high.
getalife on April 4, 2009 at 2:41 PM
Corporate handouts for me, none for thee.
Dr. Dog on April 4, 2009 at 2:42 PM
If you actually expect anyone to believe that you are going to have to start demonstrating a lot more symmetry then.
MB4 on April 4, 2009 at 2:43 PM
Its good to be the King..s brown nose.
Speakup on April 4, 2009 at 2:44 PM
Where is my pitchfork????
Obama is such a hypocrite. He really is. And so is this sad silly troll getalife. In fact if Obama were caught having sex with a 15 year old, getalife would start talking about how Christian fundamentalists routinely have sex with preschoolers.
I know that did not make any sense, but it needed to be said.
Terrye on April 4, 2009 at 2:44 PM
blind
getalife on April 4, 2009 at 2:30 PM
The only part you got right…
Keemo on April 4, 2009 at 2:44 PM
If getalife is an independent, then I am Michelle Obama.
Terrye on April 4, 2009 at 2:46 PM
If you read my link, you’ll see the answer to your question. The most corrupt of those who took advantage of the system were those who specifically created the framework they knew they could immediately abuse to make hundreds of million of dollars in a ponzi scheme that would destroy America as a side-effect.
It’s the financial equivalent of using government to loosen the laws governing nuke safeguards, then later working to obtaining nukes to sell for a lot of cash. Are they not both corrupt and morally responsible for the fallout?
econavenger on April 4, 2009 at 2:49 PM
And I’m George the Third and the Queen of Spain!
PercyB on April 4, 2009 at 2:49 PM
MB4 there is a difference between speculation and fact. You offer speculation that they (AIG) didn’t earn it and it (Summers) was a payoff. You are certainly entitled to believe that if you so choose but I haven’t seen anything to indicate the veracity of your statements.
chemman on April 4, 2009 at 2:50 PM
And yet, a certain 52.7% of us think he is the right man to protect us from terrorists and rogue states.
Richard Romano on April 4, 2009 at 2:50 PM
Don’t see it!
PappaMac on April 4, 2009 at 2:52 PM
I think what we have here is a Daschle-in-reverse.
Tom Daschle cashed in on his connections after his public service.
It looks to me like Wall Street believed Summers would have influence in the next administration. He just cashed in before he joined the White House.
I’ve been reading about Rahm Emanuel’s short stint as an investment bankers where he collected $19 million in just 2 1/2 years (he even got “retention bonues”!). All provided by a mega-donor to Clinton and the Dems.
Next week we’ll discover yet another method the weasel’s have found to line their pockets. They’re mighty creative.
jeanneb on April 4, 2009 at 2:54 PM
It’s only natural that hard working individuals get angry when they hear about this type of behavior, not matter what party they come from. But stoking the fire is where Obama needs to be very careful, and he doesn’t seem to be doing that. He likes to play the righteous indignant one who will save all from the pitchfork society… as long as they do as he says. It’s all part of his plan. That’s why he doesn’t want the TARP funds back. In a very short amount of time, he’s gained control of two major automakers and a LOT of banks and fund managers. Pretty scary stuff.
scalleywag on April 4, 2009 at 2:55 PM
I, Tuco Ramirez, will tell you something Mister Larry Summers. You think you are better than I am. Where I came from, if one did not want to have to actually earn his money, one became an influence peddler on a grand scale or a bandit. You choose your way, I chose mine. Mine was harder! I don’t remember for how long, but I tried the influence peddling racket! I tried, but it was no good! My standards may be low but I do have some standards. Now I am going to tell you something… you became an influence peddler Mister Larry Summers because you are too cowardly to do what I do.
Tuco on April 4, 2009 at 2:55 PM
The feature I’m awaiting is the outrage WTF? feature. A few years ago, I recall flipping channels and stumbling on to a VH-1 retrospective of a year in the 1980s. One of the short segments was the loud comic Gilbert Gottfried introducing the “WTF Moment of a [insert year].” He’d introduce some stupid thing, like Coca Coca rolling out New Coke, with a loud, “What the…[and they'd bleep].”
Anyway, for some of these moves, it’d be a nice way to number and catalogue them. I think a lot of these renaming moves fall in that category. The list, in truth, is endless and unceasing.
BuckeyeSam on April 4, 2009 at 2:56 PM
Yeah, but call it what it is: FRIDAY NIGHT “DUMP”, because it’s all just a crock-of-crap.
They are driving me nuts. I think I’ll wander down the road and try to win some of my retirement savings back from the Indians at the local casino. It’s the only business left running in the immediate area. Tough times are HERE
Yoop on April 4, 2009 at 2:57 PM
Then you have closed the eyes of your mind and are keeping them shut by extreme force.
MB4 on April 4, 2009 at 2:58 PM
In other news, OJ Simpson has gone underground in a Nevada prison to search for the real killer.
MB4 on April 4, 2009 at 3:00 PM
OT: Did Warren Buffet die? I haven’t heard a word from this guy since he criticized Obama. He must be residing with Jeremiah Wright, Father Pfleger, Tony Resko, or another of Obama’s personae non gratae.
BuckeyeSam on April 4, 2009 at 3:03 PM
It did made sense and rather concisely summed up getalife’s mental state quite well in fact.
MB4 on April 4, 2009 at 3:05 PM
One other thing, when is ACORN showing up on Richard Holbrooke’s doorstep? He was a director at AIG from 2000 or 2001 through July 2008. He and the other directors are supposed to be looking over the shoulders of the elected officers they choose. Where were these people? Don’t they have an obligation to know what the company actually does?
Why isn’t the federal government, as an 80% shareholder, suing these twits?
BuckeyeSam on April 4, 2009 at 3:07 PM
Buffett stands to make a financial killing from O’bama’s bailouts. He’s laying low.
Del Dolemonte on April 4, 2009 at 3:07 PM
The Obama administration is engineering its new bailout initiatives in a way that it believes will allow firms benefiting from the programs to avoid restrictions imposed by Congress, including limits on lavish executive pay, according to government officials
KentAllard on April 4, 2009 at 3:10 PM
If you can wait for just a little while POTUS and TOTUS will be around to apologize to you.
You will have to decide which will be more acceptable to your status: a bow, an air kiss, or an iPod with uploads of Hail to the Chief in six languages.
Yoop on April 4, 2009 at 3:10 PM
Bawneys Fwank says give it all back.
tarpon on April 4, 2009 at 3:11 PM
Institutions that are on the “public teat”, that is, those that have taken public funds to guarantee their survival, should be forced to have all employees live under the “GS” schedule for government employment wages, effective at the time they take the public funds. The general rule is this: If we backstop you then you live on public-sector salaries. End of discussion. If you object to this then return the public money and have a go of it on your own.
- Denninger
MB4 on April 4, 2009 at 3:12 PM
How many billable hours was that?
Wander on April 4, 2009 at 3:14 PM
In an interview with CNBC, Representative Barney Frank says he wants to push for prosecution of the people who caused the country’s financial meltdown.
A September report from the Business & Media Institute suggests one possible target for investigation: a senior member of the House Banking Committee. This congressman is “a recipient of more than $40,000 in campaign donations from Fannie since 1989″ and “was once romantically involved with a Fannie Mae executive.” The same congressman “was and remains a stalwart defender of Fannie Mae.” We won’t mention his name–oh wait, come to think of it, we already did.
In other news, O.J. Simpson has gone undercover in a Nevada prison in search of the real killer.
- James Taranto
MB4 on April 4, 2009 at 3:14 PM
Mr. Obama? Perhaps you weren’t cut out for this line of work? A career change might be in order. I hear Dairy Queen might be hiring.
capejasmine on April 4, 2009 at 3:15 PM
In an interview with CNBC, Representative Barney Frank says he wants to push for prosecution of the people who caused the country’s financial meltdown.
Bawney Bawney Bawney. Twathing all your fwiends, ith thooooooooo uncool!
capejasmine on April 4, 2009 at 3:16 PM
……….. why am I not surprised.
This ship is so out of control………….
Seven Percent Solution on April 4, 2009 at 3:17 PM
MB4:
Thanks for that. I thought it might be a tad hyperbolic.
Terrye on April 4, 2009 at 3:17 PM
Then my return gift to your Boy Emperor will be dueling lessons.
PercyB on April 4, 2009 at 3:18 PM
MB4: Sarcasm doesn’t make an argument true. Are you channeling “getalife” now?
chemman on April 4, 2009 at 3:18 PM
Huh? Obama made millions himself from the same people. He received the most contributions from Wall Street ever.
True_King on April 4, 2009 at 3:22 PM
Why anyone with even a modicum of objective perception could clearly see that I am not “channeling”, nor in any other way getting familiar with, getalife.
As I said earlier, you have closed the eyes of your mind and are keeping them shut by extreme force.
MB4 on April 4, 2009 at 3:29 PM
The corruption and lying going on in this administration makes me sick.
WisCon on April 4, 2009 at 3:31 PM
I saw that article posted on HuffPo last night, it made the natives restless over there. Of course there was an element there to rationalize all the obvious inconsistencies as well. You can get whiplash following Obamaspeak.
msmveritas on April 4, 2009 at 3:31 PM
some pigs are more equal than others…its OK for THEM to be rich….just not you.
right4life on April 4, 2009 at 3:34 PM
This is the way Communism works folks – only the party leaders are allowed to have cash. Get used to it.
HondaV65 on April 4, 2009 at 3:37 PM
LOL, I think I found the foolproof way to make getalife disappear from a thread. Ask it who it voted for for President in 2004.
Del Dolemonte on April 4, 2009 at 3:40 PM
How stupid, go ahead and put it all out there on Monday, first thing, like the msm is REALLY going to report any of this crap that the ogabi gang of thugs do. Yeah right!
clinker46 on April 4, 2009 at 4:04 PM
Stay out of my voting booth cons.
getalife on April 4, 2009 at 4:06 PM
Hey Keemo, take your lovely wife out for a nice dinner, hold hands and talk about the weather. This crap will still be here Monday, don’t make yourself crazy. I just sold my very small business, cash is in the sock drawer, think I will go apply for foodstamps, and hit the ER on the way home, I have a pain in my neck….I will be a good citizen and do what the precedent wants me too…*sigh* sarc/
clinker46 on April 4, 2009 at 4:09 PM
You should join the Army and support your President in Afghanistan, getalife, then you could tell those cons to stay out of your war. That would teach them.
MB4 on April 4, 2009 at 4:17 PM
You should join the Army and support your President in Afghanistan, getalife, then you could tell those cons to stay out of your war. That would teach them.
MB4 on April 4, 2009 at 4:17 PM
MB4 on April 4, 2009 at 4:18 PM
http://cinie.wordpress.com/2009/04/04/from-the-depths-of-the-department-of-duh/
Dr Evil on April 4, 2009 at 4:18 PM
The similarity is reinforced by Obama’s willingness to let Turbo Timmy decide which firm is good and which is bad, regardless of bailout funds. Remember, Obama doesn’t want those firms who had stimulus funds forced on them to give them back. That isn’t passive as you describe with AIG, but aggressive, attempted takeover of firms not in trouble.
a capella on April 4, 2009 at 4:21 PM
You folks really shouldn’t pick on getaclue, he will start to cry and go running to poptart and tell how mean you all are……
clinker46 on April 4, 2009 at 4:22 PM
For those of you who would like to comment on the MSNBC creep…..
http://www.thepetitionsite.com/1/fire-keith-olbermann
afotia on April 4, 2009 at 4:33 PM
This one, from the same document dump?, was just as good:
http://online.wsj.com/article/SB123879462053487927.html
How familiarly green of her. Learned a lot from Al Gore, that one.
CK MacLeod on April 4, 2009 at 4:50 PM
It’s unfettered capitalism cons support.
Stay with your priciples and don’t be hypocrites.
getalife on April 4, 2009 at 2:19 PM
By simply using “cons” in your comments, and not bothering to research truth….you show your true color. It’s BLUE!!!
As of Septemer 2008….
5 Richest Members of Congress
Four out of the five richest members are Democrats
Posted September 26, 2008
1.Rep. Jane Harman (D, Calif.): $215.11 million
2.Sen. Herb Kohl (D, Wis.): $215.85 million
3.Sen. John Kerry (D, Mass.): $213.8 million
4.Rep. Darrell Issa (R, Calif.): $158.58 million
5.Sen. Jay Rockefeller (D, W.Va.): $79.4 million
http://www.usnews.com/articles/opinion/2008/09/26/5-richest-members-of-congress.html
Now what was it you wanted to say about Republicans, being capitalists? They’re all rich. You don’t get where they are, by living by the principles, you espouse. What they say, and how they live, are to vastly different things.
capejasmine on April 4, 2009 at 5:06 PM
You folks really shouldn’t pick on getaclue, he will start to cry and go running to poptart and tell how mean you all are……
clinker46 on April 4, 2009 at 4:22 PM
ROFL!!!
capejasmine on April 4, 2009 at 5:07 PM
Think of it as the blog’s card check. I thought most moonbats love the idea.
ddrintn on April 4, 2009 at 5:27 PM
Translation:
“I voted for Jean-Claude Kerri” -getalife
Tell us again how you “support the troops”, kid. Oh, that’s right-you never did.
Tou’re dismissed.
Del Dolemonte on April 4, 2009 at 5:55 PM
Sorry, that should be “You’re dismissed.”
I had a momentary getalife brain seizure.
Del Dolemonte on April 4, 2009 at 5:58 PM
After voting for Obama, are you angry because Obama’s recession has ruined your 401K?
Johan Klaus on April 4, 2009 at 6:11 PM
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