The Nation's William Greider: Labor's Man Joins Treasury Team

[flpoljunkie]

Labor's Man Joins Treasury Team

by WILLIAM GREIDER

February 16, 2009

People getting nervous about Barack Obama's plans to rescue the financial system got a kernel of good news they probably did not recognize. Ron Bloom of the United Steelworkers Union, a brainy veteran of investment banking, has been asked to join the insiders--advising Treasury officials on the auto industry bailout. If Geithner and Summers will listen to Bloom on that and other matters, he might steer them away from disastrous errors.

Ron Bloom has the sophistication of a Wall Street financier, but the head and heart of a labor guy. He knows how to "run the numbers" and do deals, techniques he learned years ago at Lazard Freèes. When he left the world of capital, however, he went to work for organized labor. Bloom steers capital strategies for the steelworkers and advises Leo Gerard, the union's heads-up president. The steelworkers have been in the vanguard of unions aggressively using their financial power--the invested capital of pension funds--to force reform and worker-friendly policies on the corporate world. These are always tough fights. It takes smart strategies and hard-nosed negotiating to prevail. Bloom and Gerard have developed a "rep" for both.
In the current financial fiasco, Bloom has been among the outsiders bombarding government with closely-reasoned critiques--not bleeding-heart laments, but accusations based on cool analysis. When now-departed Treasury Secretary Henry Paulson was handing out tens of billions to troubled banks and investment houses, Bloom ran the numbers and called him on it. The terms of these deals were so lopsided, he explained, they amounted to a great gift from the taxpayers. The Treasury ostensibly purchased bank stocks in the largest financial firms, but at prices deliberately inflated. We, the people, paid $125 billion for shares that a private investor could have purchased for $62.5 billion The steelworkers' accusation was subsequently confirmed by others, though the precise numbers varied.

The public needs someone like this on the inside, sitting at the table with Treasury and White House officials, armed with a calculator and an independent mind. Let's hope they listen to Bloom. Let's hope they don't toss him out of the room.

http://www.thenation.com/doc/20090302/greider_web

[Kdillard]

1. Sounds good to me.

[Still Sensible]

2. Looks like an excellent move. n/t

[Cha]

3. Rec'd~ Great news! Wonder if this

gets positive attention like the freakin' "hero worship" thing?

[FrenchieCat]

6. You've got to be kidding!

This is DU. Good news sinks.
Bad news, even if false, floats like cream.....

[tbyg52]

14. Churning up the cream here! Good news! nt

[Kdillard]

4. kicking

[democracy1st]

5. K & R

[anonymous171]

7. Good news. K&R. nt

[firedupdem]

8. Sounds Good! He brings all sides to the table. Excellent! n/t

[bread_and_roses]

9. That's good news

and thanks for bringing it here; I'd missed it - have been too busy the past days to keep up with the news. The Steelworkers have been at the forfront of some of the most progressive campaigns and alliances in labor today - especially in green economy, global solidarity, and unfair trade. About time there's someone on the economic team who's primary allegiance is not to Wall Street.

[dreamnightwind]

10. Excellent, also Bernstein

This, along with learning of Biden's chief economic adviser, Jared Bernstein (Economic Policy Institute), is excellent news. Maybe there's hope that the foxes aren't alone in the henhouse.

[Aloha Spirit]

11. I read the NYTimes, WSJ articles... he seems like a no drama type. We could use some of that

since these power-holders seem absolutely stubborn.

[rockymountaindem]

12. Allright! Good news n/t

[RepublicanElephant]

13. "Let's hope they listen to Bloom."

yes...

let's hope.

[Cha]

15. Kick for Positive

News and very exciting! :toast: Ron Bloom :party: