Is Obama Fixing to Own Some Banks?

The other day, I suggested that Obama’s principles of government ownership sounded like they were designed for more than just GM.

There’s evidence to support that suggestion in this reasonably good David Sanger article on the GM bankruptcy.

In interviews in recent days, Mr. Obama’s economic team said it anticipated [political pressues regarding business decisions related to companies the government owns], and had moved to cut them off early.

It started right around the time of the bank stress tests,” said Rahm Emanuel, Mr. Obama’s chief of staff, in an interview on Monday. During one of the president’s daily economic briefings, Mr. Emanuel added, “he said that taking over companies like this is a big deal, and that no president has ever faced anything like this before. And he said he wanted to see some rules of the road about how the government should act” when it suddenly becomes the biggest shareholder in the market.

Mr. Obama clearly wanted protection: a set of principles he could hand to angry members of Congress, campaign contributors or executives to explain why he would not call Fritz Henderson, G.M.’s chief executive, to discuss whether an engine should be made in Saginaw or Shanghai.

The result was an interagency task force informally called “The Government as Shareholder,” headed by Diana Farrell, the deputy director of the National Economic Council and formerly the head of the McKinsey Global Institute, the research arm of McKinsey & Company.

It was Ms. Farrell’s report, delivered to the Oval Office fewer than 10 days ago, that laid out the principles that Mr. Obama described on Monday.

The White House insists the principles will apply equally to the government’s investment in the American International Group, the fallen insurer, or in Citigroup and other banks that the government has rescued. [my emphasis]

Sanger doesn’t seem to get the implication of Rahm’s comment. Rahm tells us these principles–principles the government will use with companies it owns–came up not during auto task force discussions, but during the bank stress tests.  That means the conversation about socialism how big a deal it is for the government to own companies came up in the context of owning banks, not owning car companies.

Sure, we already own an insurance company and Freddie and Fannie. Sure, maybe the reference to Citi is a very pointed reference. 

But it sure seems like these principles suggest we’re going to be owning a bank in the near future, to go along with GM and AIG.  Looks like we’re all going to get a chance to be banksters soon!!

Tweet about this on Twitter0Share on Reddit0Share on Facebook0Google+0Email to someone

70 Responses to Is Obama Fixing to Own Some Banks?

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70

Emptywheel Twitterverse
emptywheel RT @JasonLeopold: Today is National Whistleblower Appreciation Day. Good timing cause here's a rpt you should read https://t.co/5WmoImBquz
2mreplyretweetfavorite
emptywheel @onekade Next thing you know you'll be eating brown rice.
3mreplyretweetfavorite
JimWhiteGNV RT @jricole: Israel Bombs Gaza back to Stone Age: Razes only Power Plant & ... - http://t.co/R0nRJ4HCQh http://t.co/e71HDnb6jT
6mreplyretweetfavorite
bmaz RT @OrinKerr: @bmaz Compare to pre-911 CA4 op w no redactions but no analysis. http://t.co/0DDAnFqZIf @JoshMBlackman
8mreplyretweetfavorite
JimWhiteGNV RT @WilliamsJon: Remarkable @AFP photo: not snow but #IDF evacuation notices warning residents in #Gaza to leave their homes. http://t.co/I
9mreplyretweetfavorite
bmaz RT @actongriscom: A few days ago @wolfblitzer was actually formulating the IDF spokesman's talking point for him, on camera. #Gaza @bmaz @…
26mreplyretweetfavorite
JimWhiteGNV RT @SIGARHQ: US has funded $104 billion for Afghan reconstruction & requested another $5.8 billion for 2015 http://t.co/arPiZa1qM4
31mreplyretweetfavorite
JimWhiteGNV RT @erinmcunningham: UN: fragment analysis says Israel artillery hit Jabaliya school w/at least 3 impacts http://t.co/MII58tGqAh UN informe…
39mreplyretweetfavorite
emptywheel RT @MarthaStewart: Drones are trending.
41mreplyretweetfavorite
bmaz @SpaceCoastLaw @CNN Exactly. The sanitization and promotion of war crimes. It's all so regular!
42mreplyretweetfavorite
bmaz RT @SpaceCoastLaw: @bmaz @CNN One with a lovely & authoritative Brit accent which makes everything seem so proper. Good job, casting!
44mreplyretweetfavorite
bmaz Second Amendment right to be a boob http://t.co/i1lpFt8WMd There is no 2nd Amendment right to scare and threaten the public in an airport.
46mreplyretweetfavorite