The President’s Wall Street

Tait Trussell is a national award-winning writer, former vice-president of the American Enterprise Institute and former Washington correspondent for The Wall Street Journal.


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Obama’s close relationship with JP Morgan Chase was highlighted earlier this year when he tapped Bill Daley, a former top executive with the bank, to replace Rahm Emanuel as his chief of staff.

Wall Street’s generosity to Obama didn’t end with his 2008 campaign either. Wall Street donors contributed $4.8 million to underwrite Obama’s inauguration, according to a Jan. 15, 2009 Reuters report.

So far, Wall Street has raised $7.2 million in the current electoral cycle for President Obama, according to the Center for Responsive Politics. Obama’s 2012 Wall Street bundlers include people like Jon Corzine, former Goldman Sachs CEO and former New Jersey governor; Azita Raji, a former investment banker for JP Morgan; and Charles Myers, an executive with the investment bank Evercore Partners.

This should blow apart the myth that Wall Street is composed solely of greedy Republicans. But it will only work for those who care about the facts.

With the Wall Street bailout that Obama pushed through could he have possibly been paying off the people who helped get him elected? Solyndra’s $535 million bailout isn’t the only example of “stimulus” spending to bail out the people who brought him to office.

The protesters have been sold a bill of goods, Peter Wallison, a senior fellow at the American Enterprise Institute, put forth in an Oct. 12 Wall Street Journal opinion piece. He explained the protesters’ anger should be directed at “those who developed and supported the federal government’s housing policies which were responsible for the financial crisis.”

He explained that half of the mortgages in the country were either “subprime or otherwise weak by 2008.” Most were held or guaranteed by Fannie or Freddie. The biggest housing bubble (price increases) lasted from 1997 to 2007. Only a small number of risky mortgages were the result of private lending. When the housing bubble burst in 2007, weak mortgages went into default, pushing down home prices and putting Fannie and Freddie into insolvency and on the back of the government.

Investors bought market-backed securities. And the banks were forced to write down the value of their mortgage-backed assets, raising questions about the liquidity of the large financial institutions and raising investor anxiety and bank withdrawals.

Banks began to freeze credit. Propaganda from the government and a gullible media led to the punitive Dodd-Frank law, “named for Congress’s two key supporters of the government’s destructive housing policies. It also gave us the [misled] occupiers of Wall Street.”

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  • davarino

    The left pushed the banks to make risky loans so everyone could own a house, even if they couldnt afford it. Then when it caved in the left didnt take the blame and the banks got bailed out. Now my concern is, why arent the repubs shouting from the hill tops what the left did? Are they complicit in this some how? Could this be why the establishment doesnt want a loose cannon like Cain in the White House? He might screw it up for everyone. He might turn off the spigot of this gravey train to enrich themselves at our expense? A few of the conservatives are being vocal about these issues but the establishment as a whole are almost silent. We have some more house cleaning to do.

  • Ray

    Romney is raking in Wall Street dough as well, but as of now, according to blog.chron/texassparkle (Houston Chronicle) and other news outlets, Obama is outpacing Romney when it comes to raking in Wall Street dough, with Obama raking in $7.2 million.

    As well, Obama’s former White House Chief of Staff Rahm Emanuel, according to Wikipedia, made $16.2 million as a big banker. Daley, Obama’s new WH COS, guess what he once worked as…

    Obama promised to not bring corporate lobbyists into his administration, but tossed that promise to the side when sworn into office.

    Obama, along with most Democrats, and 1/3 of Republicans also fully supported Bush’ banker bailout (TARP).

  • StephenD

    Same old story isn't it? Follow the money and you'll find their hearts and minds.

  • maturin20

    This sounds like a good argument for ending corporate contributions to political campaigns.

    • Rifleman

      Nope, but it is a good argument for a much more limited government.

      • maturin20

        We could limit government quite effectively by removing the corporate ability to award themselves prizes from the public purse.

  • crackerjack

    Of course Wall Street bought Obama, just the same as all administrations before him and all who will follow.
    So why does the tea party back down when it comes to confronting Wall Street ?

    • Rifleman

      I already told you, the problem isn't on Wall St., it's in DC.

  • Rifleman

    Don't hold your breath waiting on the occupy the White House or occupy the dnc protests.

  • JESSICA MELTON

    PEOPLE WAKE UP JP MORGAN IS JUST ONE EXAMPLE OF WHERE OBAMA AND HIS EMPLOYEES ARE GETTING RICH THE OLD AS WELL AS THE YOUNG THAT CAN READ PICK UP A BOOK AND FIND OUT ABOUT YOUR PRESIDENT. I CANNOT BELIEVE THE YOUNG PEOPLE THINK THEY ARE GOING TO SURVIVE UNDER THIS PRESIDENT.