Daley pick (for chief of staff) could be good sign for banks [View All]

[Enrique]

http://blogs.forbes.com/brianwingfield/2011/01/04/daley-pick-could-be-a-good-sign-for-banks/

President Obama is said to be considering picking William Daley, a former Commerce Secretary and executive at JPMorgan Chase, as his next chief of staff. Here’s a smart observation from Brian Gardner, senior VP for Washington research at Keefe, Bruyette & Woods:

Since Mr. Daley works at JP Morgan, a TARP recipient, if he is hired, we think this would be a sign that: 1. ties to TARP banks are no longer toxic in Washington, and 2. Wall Street employees would no longer be persona non grata in Washington. This provides an early signal that the Administration’s rhetoric against large banks and Wall Street may start to be toned down, a positive in our view for banks.

Obama, who returns from his Hawaii vacation today, is also thought to be considering Gene Sperling and Roger Altman as candidates to direct the the National Economic Council, the post just vacated by Larry Summers. Sperling, a Treasury official and former NEC director, has also served as a consultant to Goldman Sachs. Altman, an investment banker who founded Evercore Partners, is a former Deputy Treasury Secretary.

Any of the three men would provide the administration with a blend of policy and real-world business experience. More, from Reuters:

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