Courtesy of Pam Martens.
Jack Lew Testifying at His Confirmation Hearing, February 13, 2013
At last we know how the grease is funneled to that revolving door between Wall Street and Washington. One only gets a $940,000 bonus from Wall Street’s Citigroup if you can land a “full time high level position with the United States Government or a regulatory body.” It can’t be just a part-time job, mind you; and you can’t be rank and file. Citigroup’s dangling carrot will only pay $940,000 if the company can add a “high level” government mover and shaker to their gold-plated Rolodex.
This was the bombshell dropped by Senator Orrin Hatch yesterday in Jack Lew’s confirmation hearing for one of the highest offices in the land – Secretary of the U.S. Treasury who will also head the body that makes critical decisions impacting Citigroup – the Financial Stability Oversight Council. (Lew held an executive position with Citigroup at the time of its collapse.)
Hatch made the disclosure as follows:
“First, could you explain what you did in 2008 for Citi that warranted payment to you of close to $1 million, most of which was a bonus. Second, what was it about your performance that merited your bonus from a company that was being propped up by taxpayer money and are there any records of your performance assessment – or are there any assessments of your performance. Third, your employment agreement included a clause stating that ‘your guaranteed incentive and retention award’ would not be paid upon exit from Citigroup but there was an exception that you would receive that compensation ‘as a result of your acceptance of a full time high level position with the United States Government or a regulatory body.’ Now is this exception consistent with President Obama’s efforts to ‘close the revolving door’ that carries special interest influence in and out of the government?”
Public shame has clearly lost its utility as a deterrent to repugnant behavior when it comes to Wall Street. Jack Lew proved the point yesterday. Without offering an apology or the return of the $940,000 bonus paid with taxpayer’s funds, the unflappable Lew calmly and politely answered the questions.
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