Elizabeth Warren- The Citigroup Clique

Today, I cast my vote on the Senate Banking Committee for Stanley Fischer to serve in the No. 2 position at the U.S. Federal Reserve. I asked Fischer tough questions – in person, at his nomination hearing, and in writing – and I have been impressed with the depth of his knowledge and experience.

But I cast my vote reluctantly because of my growing frustration over the concentration of people with ties to the megabank Citigroup in senior government positions...Fischer, after all, is just the latest Citi alumnus to be tapped for a high-level government position. Starting with Robert Rubin – a former Citi CEO – three of the last four Treasury secretaries under Democratic presidents have had Citigroup affiliations before or after their Treasury service. (The fourth was offered, but declined, Citigroup’s CEO position.) Directors of the National Economic Council and Office of Management and Budget, as well as our current U.S. trade representative, also have had strong ties to Citigroup.

No one doubts that there are smart, hard-working people at Citigroup and elsewhere in the financial industry. When I worked to set up the new Consumer Financial Protection Bureau, I interviewed, hired and worked alongside many people with private-sector experience. Private-sector experience can be valuable and should not disqualify someone from serving in the upper levels of government...The Citigroup clique has produced some effective public servants, but it has crowded out too many others who might have brought a different perspective to their service.

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For too long, the titans of Wall Street succeeded in pushing government policies that made the megabanks rich beyond imagination, while leaving working families to struggle from payday to payday. Many Republicans openly acknowledge their ties to Wall Street, but Democrats have campaigned on an alternative approach focusing on expanding opportunities and leveling the playing field for the middle class. Democrats’ slogans have won some elections, but once in power, Democratic administrations have too often stacked top positions in government with people close to Wall Street. Stanley Fischer is a good man and has earned my respect, but this is a real and growing problem. If the big banks can seize both parties, then the Democrats—and the country—lose the central economic argument that government should work for the people, not just for the rich and powerful.

http://www.politico.com/magazine/story/2014/04/the-citigroup-clique-106125_full.html