Later On

A blog written for those whose interests more or less match mine.

Treasury Nominee Jack Lew Retained Citigroup Foreign Investments After Joining Obama State Department; Public Kept In Dark

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Obama keeps nominating these shills for Wall Street (others: Timothy Geithner, Eric Holder, et al.) for his cabinet. He really seems to be in the tank for Wall Street—all that campaign money does get repaid. Pam Martens at Wall Street on Parade writes:

It has been previously reported that President Obama’s Treasury Secretary nominee, Jacob (Jack) Lew, earned millions in salary and bonus from Citigroup in the brief two and one half years he worked there. That should not come as a surprise to anyone.  Former Treasury Secretary Robert Rubin left his post as Treasury Secretary in 1999 to join Citigroup and was paid $120 million over the next eight years for non-management work.

Citigroup is the mega bank the Securities and Exchange Commission charged with lying about its financial condition while Lew worked there in an executive position.  Citigroup went from lying about its finances in 2007 to cumulatively requiring over $2.51 trillion in Federal Reserve loans, TARP capital and Federal asset guarantees to remain afloat during the financial crisis. During Lew’s stint at Citigroup, July 2006 through early 2009, Citigroup lost 85 percent of its shareholders’ value.

A review of documents submitted to the U.S. Senate Budget Committee for Lew’s confirmation hearing on September 16, 2010 to become Director of the Office of Management and Budget indicates Lew’s financial ties to Citigroup continued long after he joined the Obama administration. The public is being kept in the dark about the extent of Lew’s winnings at the Citigroup casino and its heads we win, tails you lose dealer tables.

One section of the documents (see link below) refers to “Business Relationships” and indicates that Lew had been a limited partner from 2007 through the date of the hearing on September 16, 2010 in the CVCI Private Equity Fund. There is nothing in these documents to enlighten either the Senators or the public that CVCI is an acronym for Citi Venture Capital International, a unit of Citigroup investing billions in foreign companies in hopes of making its limited partners very wealthy.  (A limited partner in a private equity fund is synonymous with being an investor in the fund.)

During the 2010 Senate Budget confirmation hearing of Lew, Senator Bernie Sanders lost patience with Lew for avoiding direct answers to the questions posed.  Lew performed the same maneuver in his written disclosure document to the Senate when asked about conflicts of interest which should have revealed his continuing investment in private foreign deals at Citigroup.

When asked “Will you sever all connections with your present employers, business firms, business associations or business organizations if you are confirmed by the Senate,” instead of stating that he remained a limited partner and investor in a multi-billion dollar fund buying up stakes in foreign companies, Lew gave a decidedly non-responsive answer, writing: “If confirmed, I will remain an employee of the US Government.”

When asked to identify all investments and financial relationships which might pose a conflict of interest, Lew gave this carefully crafted legal dodge: . . .

Continue reading. Obama should be ashamed. But I fear he is nominating this guy because of his Wall Street partisanship: part of the payoff.

Written by LeisureGuy

14 January 2013 at 10:55 am

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