Putting Obama on Hold, in a Hint of Who’s Boss (BANKSTERS!)

[chimpymustgo]

Putting Obama on Hold, in a Hint of Who’s Boss

By ANDREW ROSS SORKIN
Published: December 14, 2009

President Obama didn’t exactly look thrilled as he stared at the Polycom speakerphone in front of him. “Well, I appreciate you guys calling in,” he began the meeting at the White House with Wall Street’s top brass on Monday.

He was, of course, referring to the three conspicuously absent attendees who were being piped in by telephone: Lloyd C. Blankfein, the chief executive of Goldman Sachs; John J. Mack, chairman of Morgan Stanley; and Richard D. Parsons, chairman of Citigroup.

Their excuse? “Inclement weather,” according to the White House. More precisely, fog delayed flights into Reagan National Airport. (In the “no good deed goes unpunished” category, the absent bankers were at least self-aware enough to try to fly commercial.)

That awkward moment on speakerphone in the White House, for better or worse, spoke volumes about how the balance of power between Wall Street and Washington has shifted again, back in Wall Street’s favor.

Now that Citigroup has given back its bailout money — and Wells Fargo announced late on Monday that it would, too — whatever leverage Washington had over the financial services industry seems to be quickly eroding.

Executive compensation, leverage limits and lending standards were all issues that Washington said it planned to change — and when the taxpayers were the shareholders of these firms, it probably could have done so. But now the White House has been left in the position of extending invitations, rather than exercising its clout. And in the figurative and literal sense, it is getting stood up.

-edit-


After all, they sure hoofed it down there last year, when Henry M. Paulson Jr. ordered them to meet him in Washington with less than 24 hours of notice. Most of them got there early, and went home with $10 billion to $25 billion of taxpayer money.

-edit-

Inside the Obama administration, there were bruised feelings about the need for a conference call to have a meeting.

“It was pretty nervy,” one staff member told me.

-edit-

http://www.nytimes.com/2009/12/15/business/15sorkin.html?em

[Laelth]

1. Quite telling. n/t

:dem:

-Laelth

[asdjrocky]

2. Wow. Just wow. nt

[4dsc]

3. They now know Obama is WEAK!!

Its not very nervy when you know the President is being manipulated by Wall Street insiders on his staff..

[chimpymustgo]

4. On all the big issues, Afghanistan, health care, economy, Obama has BEEN WEAK. The rethugs know

they've got him now.