Breaking: Bloomberg reports Lew to get Treasury job

posted at 10:43 am on January 9, 2013 by Ed Morrissey

This doesn’t exactly come as a big surprise, but it does send a signal about the direction of the White House — and it’s not toward private-sector experience:

President Barack Obama plans to name White House Chief of Staff Jack Lew tomorrow as his choice for Treasury secretary, replacing Timothy F. Geithner, a person familiar with the process said.

Lew, 57, who also has served as director of the Office of Management and Budget, has been offered the Treasury post by Obama, according to the person, who asked for anonymity to discuss personnel matters.

Geithner, 51, the only remaining member of Obama’s original economic team, has told White House officials he doesn’t’ want to serve in a second term and intends to leave the job by the end of the month.

As Bloomberg points out, Lew has worked almost his entire career in government, with just a “brief detour” to Wall Street:

As a former aide to the late House Speaker Tip O’Neill, a Massachusetts Democrat, and a two-time director of the Office of Management and Budget, Lew has experience on both ends of Pennsylvania Avenue. He’s spent most of his career in government, with a brief detour to Wall Street, where he worked as a managing director for Citigroup from July 2006 until joining the administration when Obama first took office.

So much for that private-sector outreach in 2011-2, eh?  Lew’s predecessor as chief of staff, William Daley, was supposed to facilitate connections to the private sector.  Instead of getting a Treasury Secretary with extensive experience in financial markets, we’re going to get one with extensive experience in expanding government control and manipulation of markets.  I’ll bet Wall Street will be overjoyed with this development … but probably not surprised.


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sos…different day!

4 more years

CoffeeLover on January 9, 2013 at 10:48 AM

…I want Pelosi!

KOOLAID2 on January 9, 2013 at 10:49 AM

Shocka…..rearranging chairs

cmsinaz on January 9, 2013 at 10:49 AM

Lew is also a smarmy a** who basically thinks negotiating =hectoring and lecturing.

Illinidiva on January 9, 2013 at 10:50 AM

Why would anyone expect Obama to engage is private-sector outreach? That would be like bringing the enemy into the strategy room.

BKeyser on January 9, 2013 at 10:50 AM

Instead of getting a Treasury Secretary with extensive experience in financial markets, we’re going to get one with extensive experience in expanding government control and manipulation of markets.

Probably closer to the job description, anyway.

Axe on January 9, 2013 at 10:51 AM

Bloomberg reports Lew to get Treasury job

That’s inaccurate. It is probably true but Lew is going to be nominated for the Treasury job. Still requires Senate approval before he gets it.

Happy Nomad on January 9, 2013 at 10:51 AM

i’m sure ed would prefer a lackey of wall street to take the treasury job. because that’s worked so well in the past.

sesquipedalian on January 9, 2013 at 10:54 AM

If he knows nothing, he can have no objections to any destructive measures proffered by his boss. In other words, perfect for the job.

ROCnPhilly on January 9, 2013 at 10:55 AM

Good, the last thing we need in our representative government is someone with experience outside of said government.

Bishop on January 9, 2013 at 10:55 AM

Wall Street is into full bore cronyism so i doubt any of this bothers them.

bannor on January 9, 2013 at 10:56 AM

I’m sensing a theme for Obama’s 2nd term cabinet appointments; Kerry, Hagel, Lew. The theme is dumb as a post guys who don’t ask many questions and do as they are told. I’ve had grilled cheese sandwiches that are more assertive than these guys. They probably call Allahpundit for dating advice.

Rocks on January 9, 2013 at 10:58 AM

As a former aide to the late House Speaker Tip O’Neill…

Mr B.O.Tingles – Chris Matthews – is in heaven…

Resist We Much on January 9, 2013 at 11:00 AM

This guy ran Citigroup into the ground as the COO. He oversaw the company’s prop trading unit.

Get ready for more gambling with house money, more doubling down on failed policies. If this guy runs the Treasury the way he ran Citi’s operations unit, we’ll be $32 trillion in debt by 2017.

Washington Fancy on January 9, 2013 at 11:05 AM

I’m sensing a theme for Obama’s 2nd term cabinet appointments; Kerry, Hagel, Lew. The theme is dumb as a post guys who don’t ask many questions and do as they are told.

Rocks on January 9, 2013 at 10:58 AM

Yep. It is increasingly clear every day (and has been for years) that El presidente Hopenchange is interested only in preserving the status quo.

UltimateBob on January 9, 2013 at 11:07 AM

The theme is dumb as a post guys who don’t ask many questions and do as they are told.

Rocks on January 9, 2013 at 10:58 AM

It’s the Post Turtle Cabinet!

Resist We Much on January 9, 2013 at 11:10 AM

unfounded accusation, unsubstantiated evidence, wikipedia reference

tom daschle concerned on January 9, 2013 at 11:10 AM

Overheard at the “Lew” hearings in the Senate – “I thought there would be no math”.

Tater Salad on January 9, 2013 at 11:14 AM

How much more will this cost the country. How many home loans to people that shouldn’t get home loans? How many more secret Fed loans?

Oil Can on January 9, 2013 at 11:16 AM

Heaven help us if there is another finacial crisis.

The gov’t “solutions” they come up with will be anything but.

WisRich on January 9, 2013 at 11:18 AM

i’m sure ed would prefer a lackey of wall street to take the treasury job. because that’s worked so well in the past.

sesquipedalian on January 9, 2013 at 10:54 AM

The slimy one nailed it out of the park this time…

Archivarix on January 9, 2013 at 11:20 AM

The theme is dumb as a post guys who don’t ask many questions and do as they are told.

Rocks on January 9, 2013 at 10:58 AM

It’s the Post Turtle Cabinet!

Resist We Much on January 9, 2013 at 11:10 AM

Congrats, Rocks. I think you just inspired a graphic. :)

Axe on January 9, 2013 at 11:23 AM

Wall Street is into full bore cronyism so i doubt any of this bothers them.

bannor on January 9, 2013 at 10:56 AM

Exactly… Wall Street is not anymore symbol of Capitalism… Most of the Wall Street tycoons are super limousine liberals who believe in big government that will give them all type of breaks, loopholes, and favors… Wall Street is not connected to the real economy anymore…

mnjg on January 9, 2013 at 11:25 AM

Wall Street is not connected to the real economy anymore…

mnjg on January 9, 2013 at 11:25 AM

Why, it IS connected – by a one-way money pump.

Archivarix on January 9, 2013 at 11:30 AM

i’m sure ed would prefer a lackey of wall street to take the treasury job. because that’s worked so well in the past.

sesquipedalian on January 9, 2013 at 10:54 AM

Wall Street is mainly controlled by the Limousine Liberals the most powerful group of the democrat party…

mnjg on January 9, 2013 at 11:30 AM

wow, I’m beginning to understand some of the figures the OMB has put out in the last four years!

katablog.com on January 9, 2013 at 11:54 AM

Lew is also a smarmy a** who basically thinks negotiating =hectoring and lecturing.

So, you are saying he’s a perfect fit for Barry’s admin, then.

His appointment should be a slam dunk.

hawkeye54 on January 9, 2013 at 11:59 AM

i’m sure ed would prefer a lackey of wall street to take the treasury job. because that’s worked so well in the past.

sesquipedalian on January 9, 2013 at 10:54 AM

Ha ha. What about Orszag?

Obama is very cozy with lots of corporate cronies like Goldman Sachs.

gwelf on January 9, 2013 at 12:07 PM

i’m sure ed would prefer a lackey of wall street to take the treasury job. because that’s worked so well in the past.

sesquipedalian on January 9, 2013 at 10:54 AM

Just like presidents from ivy league schools.

gwelf on January 9, 2013 at 12:09 PM

Oh my, from one idiot to another…poor country.

Schadenfreude on January 9, 2013 at 12:18 PM

Maxine Waters could do just as good.

Heck, give it to sesqui.

Schadenfreude on January 9, 2013 at 12:19 PM

Goebbels just orgasmed in his grave. He’s having one ball after another.

Schadenfreude on January 9, 2013 at 12:20 PM

Obama is paid for and manipulated by Wall Street, for the totally obtuse.

Schadenfreude on January 9, 2013 at 12:21 PM

so the guy is not wall street lap dog??!!? good!

nathor on January 9, 2013 at 12:30 PM

Four more years of these tyrants.

rayra on January 9, 2013 at 12:32 PM

Can the nation / we survive it? Will they?

rayra on January 9, 2013 at 12:33 PM

so the guy is not wall street lap dog??!!? good!

nathor on January 9, 2013 at 12:30 PM

Ignorant moron. Lew is the petit tyrant that arranged and bullied everybody into the Sequestration / Fiscal Cliff “crisis”. He should be HANGED for what he has done, is doing to this nation. Instead of getting his hands directly on the controls.

rayra on January 9, 2013 at 12:36 PM

Ignorant moron. Lew is the petit tyrant that arranged and bullied everybody into the Sequestration / Fiscal Cliff “crisis”. He should be HANGED for what he has done, is doing to this nation. Instead of getting his hands directly on the controls.

rayra on January 9, 2013 at 12:36 PM

but I do want the representative of the people in the treasury to be a tyrant on to wall street and their “interests”.
hope he breaks the big banks apart, starting with goldman sachs!

nathor on January 9, 2013 at 12:41 PM

Can the nation / we survive it? Will they?

rayra on January 9, 2013 at 12:33 PM

the less power wall street has, the better the nation will be! stop hyperventilating!

nathor on January 9, 2013 at 12:43 PM

the less power wall street has, the better the nation will be! stop hyperventilating!

nathor on January 9, 2013 at 12:43 PM

Fool, Wall Street owns Obama, and Obama loves it.

Schadenfreude on January 9, 2013 at 12:53 PM

hope he breaks the big banks apart, starting with goldman sachs!

nathor on January 9, 2013 at 12:41 PM

Are you nuts. Obama exempted Goldman from the cliff bill. He did so with Google, Costco, Hollywood. Wake up.

Schadenfreude on January 9, 2013 at 12:55 PM

so the guy is not wall street lap dog??!!? good!

nathor on January 9, 2013 at 12:30 PM

He is a stupid WS lapdog.

Schadenfreude on January 9, 2013 at 12:56 PM

WS is comprised of leftist hypocrites.

Schadenfreude on January 9, 2013 at 12:56 PM

Congrats, Rocks. I think you just inspired a graphic. :)

Axe on January 9, 2013 at 11:23 AM

The Post Turtle’s Post Turtle Cabinet

lol

Resist We Much on January 9, 2013 at 1:02 PM

My favorite post Nov. 6 bumper sticker is “Obama – I love equality”.

Makes me smile every time at how stupid the fools are. Obama hates equality and he loves you sheeple exactly where you are, if you are poor. If you are the middle class he’ll bring you down, with every move.

Schadenfreude on January 9, 2013 at 1:06 PM

The Post Turtle’s Post Turtle Cabinet

lol

Resist We Much on January 9, 2013 at 1:02 PM

Excellent – pls. consider inserting Benghazi, somehow.

Schadenfreude on January 9, 2013 at 1:09 PM

Are you nuts. Obama exempted Goldman from the cliff bill. He did so with Google, Costco, Hollywood. Wake up.

Schadenfreude on January 9, 2013 at 12:55 PM

you are an obama hater, learn to live with the devil, stop opposing everything just because its obama.

nathor on January 9, 2013 at 1:09 PM

Means nothing… but I will be glad to see Turbotax Timmy’s scrawl off of my cash. Makes my skin crawl every time I see a Series 2009 note.

The main question: How big and complicated a signature will we now see on our cash with the Series 2013 notes, considering the new Treasury Sec’y only has seven letters to work with?

Given the track record of 0bama employees, it will probably look like a child drew it with a crayon in block letters….

cane_loader on January 9, 2013 at 1:11 PM

J…..A……C……K……L…..E……W…..

There. With the typical egotism of 0bama appointees, he just scrawled his John Hancock across George Washington’s face.

Too bad his surmane isn’t “Leg.”

cane_loader on January 9, 2013 at 1:12 PM

Appointing a partisan, political hack to run the Treasury is just plain stupid and a disaster for America.

OxyCon on January 9, 2013 at 1:13 PM

I assume that a token female Hispanic will still be treasurer.

There has been an unbroken line of female Hispanic treasurers since Bush 41. It has become a sinecure, handed down from Wise Latina to Wise Latina.

cane_loader on January 9, 2013 at 1:14 PM

but I do want the representative of the people in the treasury to be a tyrant on to wall street and their “interests”.
hope he breaks the big banks apart, starting with goldman sachs!

nathor on January 9, 2013 at 12:41 PM

Wall Street is totally dominated and controlled by super Limousine Liberals who are the most powerful group in the democrat party… One of the biggest deception in history is how the democrats rile their parasite base against Wall Street using all type of anti-Wall Street rhetoric but at the same time their most powerful group is the super Limousine Liberals at Wall Street and who control the democrat party… Throw the anti-Wall Street red meat rhteotic to the paraiste base and then behind the scens and tucked into laws give all type of tax breaks, tax loopholes, and tax shelters to Wall Street super limousine liberals…

mnjg on January 9, 2013 at 1:14 PM

What idle fun it will be on the 2013 notes to scratch out the “W” and write in a “G” on every note I spend.

Pass it on!

cane_loader on January 9, 2013 at 1:15 PM

you are an obama hater, learn to live with the devil, stop opposing everything just because its obama.

nathor on January 9, 2013 at 1:09 PM

You are the most useful idiot but it is typcial behavior of the democrat party parasite base… You idiot is easily used and fooled by the democrat party… Wall Street is totally dominated and controlled by super Limousine Liberals who are the most powerful group in the democrat party… One of the biggest deception in history is how the democrats rile their parasite base against Wall Street using all type of anti-Wall Street rhetoric but at the same time their most powerful group is the super Limousine Liberals at Wall Street and who control the democrat party… Throw the anti-Wall Street red meat rhteotic to the paraiste base and then behind the scens and tucked into laws give all type of tax breaks, tax loopholes, and tax shelters to Wall Street super limousine liberals…

mnjg on January 9, 2013 at 1:16 PM

Jjust checked myself…. the tradition of only allowing female Wise Latinas to be Treasurer on our money began under Reagan – with one exception under Clinton (probably owed her a favor).

cane_loader on January 9, 2013 at 1:18 PM

Catalina “Cathi” Vásquez Villalpando (born April 1, 1940) was the 39th Treasurer of the United States from December 11, 1989 to January 20, 1993 under President George H. W. Bush. She had previously held minor positions under President Ronald Reagan and was also a chairman of the Republican National Hispanic Assembly. In 1994, Villalpando was found guilty of obstruction of justice and tax evasion, becoming the only U.S. Treasurer ever to be sent to prison.

Let’s make Turbotax Timmy the second….

cane_loader on January 9, 2013 at 1:20 PM

Are you nuts. Obama exempted Goldman from the cliff bill. He did so with Google, Costco, Hollywood. Wake up.

Schadenfreude on January 9, 2013 at 12:55 PM

you are an obama hater, learn to live with the devil, stop opposing everything just because its obama.

nathor on January 9, 2013 at 1:09 PM

Diversion Fail.

What Schad said is true. DoJ has also said that it will not be prosecuting anyone from GS for anything that it or they did that may have played a role in the financial crisis.

Seriously, nathor, the Obama Administration didn’t go after HSBC criminally after the bank ADMITTED that it KNOWINGLY LAUNDERED MONEY FOR DRUG CARTELS. The administration announced a settlement with the bank in December wherein HSBC would pay a civil fine of $650 million and forfeit $1.3 billion.

You try laundering money for drug cartels and see if Obama allows you to pay a civil fine and forfeit some of your profits. LOL! He’ll throw your arse in jail BECAUSE IT IS A FEDERAL CRIME.

Yeah, he’s got the back of the middle class! /

Quit being a stooge.

Resist We Much on January 9, 2013 at 1:23 PM

Let’s make Turbotax Timmy the second….

cane_loader on January 9, 2013 at 1:20 PM

Ahem… the FIRST

Got to check my links better!

cane_loader on January 9, 2013 at 1:24 PM

Mostly off-topic, but I was struck by this wikipedia read of the downfall of the only U.S. Treasurer sent to jail.

It seems like a classic case study of the favor-trading nature of becoming Treasurer.

Read the link and the stuff before the below quote, of the political machinations that MADE her Treasurer.

Seems like a case study. Wonder how Jack Lew did it.

http://en.wikipedia.org/wiki/Catalina_Vasquez_Villalpando

I love the last line of the bio….. at the bottom of the below quote:

U.S. Treasurer

Villalpando was sworn in by the president on December 11. In attendance at her ceremony was Senator Phil Gramm of Texas and Gustavo Petricioli, Mexico’s ambassador to the United States.[8] As U.S. Treasurer, Villalpando became the highest-ranking Latina in the Bush Administration exhibiting a high-profile presence in the Hispanic community on its behalf.

While Treasurer, Villalpando presided over the first major change in US currency since the motto “In God We Trust” was introduced in 1957. Beginning in September, 1991, $50 and $100 bills with new, advanced technology designed to defeat digital printers was introduced into public circulation.[14] The same year, Villalpando initiated a special program to raise $37 million by selling commemorative coins honoring Mt. Rushmore. Half of the money raised would go toward restoration of the monument – the cost of which was estimated at $40 million – and half to pay into the national debt.[15]
Clinton comments

In August, 1992, Villalpando became embroiled in controversy over comments made by her and Commerce Secretary and Bush campaign manager Robert Mosbacher. The comments concerned ongoing sex scandals and rumors surrounding Arkansas Governor and Democratic presidential nominee Bill Clinton and former San Antonio mayor Henry Cisneros. Visiting the New Jersey delegation at the 1992 Republican National Convention, Villalpando reportedly said to the delegates: “Can you imagine two skirt-chasers campaigning together?” She also questioned Clinton’s qualifications under these circumstances. Some members of the delegation were not pleased with the comments, in particular former New Jersey Governor Tom Kean who called the remarks, “totally unnecessary.” Although both Bush and Villalpando issued apologies, Clinton campaign spokesman George Stephanopolous called on the president to dismiss both officials.[16][17]
Tax/CII scandal
Investigation

While still enveloped in the controversy surrounding her Clinton and Cisneros comments, Villalpando became the central figure in a criminal probe launched by the Department of Justice. The investigation initially focused on allegations that Villalpando accepted favors and other gratuities from CII while in office – a violation of federal law. However, it also incorporated an array of potential charges including “bribery, conspiracy to defraud the government, making false or fraudulent claims, racketeering, making false statements to federal agents and fraud by wire, radio or television.”[18]

News of the investigation broke on October 29, the day after FBI agents raided several buildings and residences in DC, Virginia, and Georgia. Among these were the homes of Villalpando and Olivas as well as the offices of CII in Norcross where boxes of documents were seized.[1][19] Villalpando took an immediate leave of absence from her post while Olivas, who was already on leave from CII to act as director of Hispanic outreach for the Bush-Quayle re-election team, quit the campaign.[11][19] Profit was not considered a suspect in the probe, telling reporters instead that investigators told him – and presumably other employees – that “‘they…were witnesses’ and would be asked to provide information.”[18]

Records obtained during the investigation revealed that Villalpando received in excess of $147,000 from CII after she assumed her post as U.S. Treasurer in December 1989. They further showed $441,417 in additional bonuses being received in the fall as she was readying her departure from the company. Finally, the records indicated that Villalpando still had between $250,000 and $500,000 in company stock.[7]

According to Villalpando’s notes, the $147,000 was listed as severance pay; however, no reference was made to it as required in the financial disclosure forms she submitted to the government upon being nominated. She did indicate at her confirmation hearings that she would retain her stock ownership in the company but promised to have no involvement in the firm’s business. The following year, she received her severance payment and an additional $7,000 in accrued leave. Investigators were charged with determining whether these payments were expected but simply not reported or received in expectation of gaining influence in obtaining federal contracts.[7]

CII, it was revealed, had a large amount of business with the government. Between 1983 and 1992, the telecommunications firm was awarded 56 non-competitive contracts totaling $68.6 million. As recently as the Persian Gulf War, CII had been awarded huge contracts to provide communication networks for U.S. forces in the region as well as to help rebuild Kuwaiti infrustructure after the war.[7][10]
Conviction

The investigation did not support charges of influence-peddling on Villalpando’s part. Instead, the probe began to intersect with another criminal investigation ongoing within the Department of Housing and Urban Development (HUD) over fraud and the improper awarding of federal contracts during the Reagan Administration. In May 1992, Villalpando was ordered to testify before a grand jury as well as produce certain documents related to that case involving HUD official Deborah Gore Dean. Villalpando’s own investigation began to turn toward her failure to reveal compensation from CII and failure to pay appropriate taxes. The following year, she was also accused of obstruction of justice by lying to investigators as well as ordering the destruction of subpoenaed documents.[20]

At her trial, prosecutors charged Villalpando with three felonies: tax evasion (specifically $47,013 in Federal income taxes), conspiracy to make false statements regarding her finances (namely that she believed she owed less than she did), and obstruction of a grand jury (due to the destruction of officially requested records in the HUD probe). The charges carried a maximum penalty of a $750,000 fine and 15 years imprisonment. Villalpando admitted to concealing “substantial funds and benefits”, received by her from CII, information which was “capable of influencing the actions and judgments of those departments and agencies” tasked to evaluate her qualification for the post of U.S. Treasurer. She further admitted that the conspiracy to conceal information was begun as early as March 1989, when she first learned that President Bush intended to nominate her for the post. Villalpando also acknowledged that in July 1992, she asked her long-time acquaintenance Olivas to destroy documents subpoenaed by the independent counsel in the Dean case.[13]

On February 18, 1994, Villalpando pled guilty to all three counts and was released pending her sentencing at which time she was expected to cooperate with ongoing probes into CII contracts and HUD in return for consideration.[13][20] At her sentencing, Villalpando received four months imprisonment, three years of probation (four months of which to be served under house arrest), 200 hours of community service, and a $150 tax evasion fee.[21] Prosecutors had unsuccessfully sought a harsher penalty.[22]
Post-Treasurer years

Villalpando technically remained in her post on leave of absence until the Clinton Administration was inaugurated in January, 1993.[13][23] In 2003, she appeared on a list produced by the D.C. government of notorious tax scofflaws. According to this report, the former treasurer owed the district government $168,417.72 in back taxes.[24] As of 2008, she was still in arrears.[25]

In 2006, Villalpando was awarded an honorary doctorate for her work from Atlantic Union College, a small liberal arts institution. She also served as that year’s commencement speaker, admonishing the graduates to “embrace the tough times encountered in life.” Villalpando also thanked the Seventh-Day Adventist Church – under whose auspices the college operates – for being there when she was at her lowest.[26][27]

Villalpando currently works as a quality assurance specialist at the Amerix Corporation call center in Columbia, Maryland.[26][27]

cane_loader on January 9, 2013 at 1:31 PM

Resist We Much on January 9, 2013 at 1:23 PM

mnjg on January 9, 2013 at 1:16 PM

fine, be WS liberals, republicans or just bipartisan crony capitalists, as long as the republican base does not like them, fine by me!

nathor on January 9, 2013 at 1:32 PM

So does Turbotax Timmy still owe back taxes?

cane_loader on January 9, 2013 at 1:33 PM

Quit being a stooge.

Resist We Much on January 9, 2013 at 1:23 PM

I’d pay you, but then you’d have to fund the Utopia :)

Hugs instead

Schadenfreude on January 9, 2013 at 1:37 PM

nathor on January 9, 2013 at 1:32 PM

You’re always the fool.

Schadenfreude on January 9, 2013 at 1:37 PM

Sorry RWM, you’ve got Benghazi covered.

Schadenfreude on January 9, 2013 at 1:41 PM

You’re always the fool.

Schadenfreude on January 9, 2013 at 1:37 PM

no, you the fool! there are problems that affect both parties and you are so partisan, that you are incapable of making compromises with the “devil” to solve some of these issues.
I am not blind, both parties suffer from the same bout of crony capitalism but some of the things you hate, the libtard base also hates, and you can join up to solve it instead permanent confrontation that only leaves the crony capitalists free reign in fleecing us!

nathor on January 9, 2013 at 1:56 PM

nathor on January 9, 2013 at 1:56 PM

I’m a realist, not a delusional fool.

Schadenfreude on January 9, 2013 at 2:42 PM

And, nathor, you can have the devil. He’s all yours. Puke, hurl…sleep with him if you like. No, thank you.

Schadenfreude on January 9, 2013 at 2:42 PM

0bama’s idea of success.
Jack Lew for Treasury….. Lack Jew for Defense.

LegendHasIt on January 9, 2013 at 2:52 PM

0bama’s idea of success.
Jack Lew for Treasury….. Lack Jew for Defense.

The idea works for what he wants done, not for what we would want done.

hawkeye54 on January 9, 2013 at 3:10 PM