The nomination of Jack Lew for Treasury Secretary has uncovered a lot of dirt about the man, but it also has a lot of dust swirling, regarding the incestuous relationship between the Obama administration and Wall Street that the White House would probably prefer to have kept buried. The story surely tarnishes the President’s image as “a man of the people, standing up to Wall Street.”
In Lew we find much of what President Obama publicly derides—but, as Forbes reports, is “prepared to accept from his closest associates.”
In 2009, Obama said it was the “height of irresponsibility” and “shameful” for “executives at major financial firms who turned to the American people, hat in hand, when they were in trouble, even as they paid themselves their customary lavish bonuses.” And added: “For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis isn’t just bad taste—it’s bad strategy—and I will not tolerate it as President.” Yet, Lew, during a short stint at Citi received an “obscene” bonus of $950,000—after we, the taxpayers, bailed out Citi to the tune of $476.2 billion.
In both the 2008 and 2012 campaigns, Obama railed against investments in the Caymans. In 2008, during a Democrat primary debate, he talked about “closing tax loopholes and tax havens” and specifically addressed a building in the Cayman Islands that supposedly houses 12,000 corporations. “That’s either the biggest building or the biggest tax scam on record.” In 2012, the Obama campaign vilified Mitt Romney for investments in Cayman accounts. Yet, Lew was invested in a Citigroup venture capital fund registered in the Cayman Islands.