Tuesday, November 25, 2008

Paulson, Geithner and Rubin: How the Big Three "Hooked Up" Citigroup

Citigroup has received a massive federal bailout -- the largest to date, in fact. Today's Washington Post examines how a powerful trio of men -- Paulson, Rubin and Geithner -- worked to secure the deal. Turns out that Robert Rubin -- former Secretary of Treasury under Clinton and a Director of Citigroup -- is an old colleague of Paulson back from their days together at Goldman Sachs. Geithner, Obama's pick as Secretary of Treasury, worked for Rubin in the Clinton administration. Rubin made several calls to Paulson pressuring -- I mean persuading -- him to make a really big move with respect to Citigroup. Although it does not appear that Paulson will have a role in the Obama administration, Geithner will, and Rubin has acted in an advisory role for the president-elect on economic issues. Furthermore, Summers, Obama's Chief Economic Advisor, is a protege of Rubin. Could turning to these guys to fix the economy amount to "disease as cure"?

Read more here: Washington Post on Citigroup.


Anonymous said...

Wow. Amazing. But maybe they'll do better with Obama's leadership? Am I being too hopeful?

Darren Lenard Hutchinson said...

I have not taken the position that everything about the Clinton-era was bad. I do not see how we can escape free trade -- although we do not have to subsidize it, and we can provide incentives for companies that invest and hire in the USA. But there is something interesting to me about the personal ties and how they worked out a big deal. Had it been Cheney and Haliburton....oh never mind.

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Aeneas said...

All I can say... I am chuckling. Also, I wonder how we have come to say that the Clinton era was all bad. Bill Clinton was not my favorite President, but that doesn't mean that it was 'all bad'. Or, did it become all bad because Hillary ran against Obama?

May be this is the team that will be allowed to inject sanity, order and discipline. I still subscribe to and feel passionately about the issue of energy independance, both from the point of view of the economy (money flowing out) and national security. I want to hear about that. If we don't deal with that--which has been at the root of many of our troubles and many of our wars--we, I think, are again doing the half a** job of the previous administrations. You can't deal with one (the economy) without the other.

***ok, off the soap box***

Darren Lenard Hutchinson said...

Aeneas -- don't get off the soapbox! That's what blogging is all about. I agree with you on the notion that the this campaign distorted the Clinton-era. And I do not want to give the impression that I subscribe to that viewpoint. I think it's more telling that in this particular situation, there was some lack of oversight. Citigroup repackaged bad debt, just like the other institutions that are imploding. Citigroup got the fattest deal. I am assuming it's because of this trio....but perhaps I'm wrong....

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