Obama's Director OMB Lands Citibank Job, Peter Orszag, To Take High Paying Banking Position

    President Obama nominated Peter Orszag to be his Director of Management and Budget in November, 2008, where he served a year and a half and resigned the position in July 2010.  His new position at Citibank may pay $2-3 million according to bankers familiar with similar positions. Orszag joins a former Bush cabinet appointee at Citibank.

    Peter Orszag, 41, worked in the Clinton administration, at the Brookings Institution, as Director of the Congressional Budget Office for almost 2 years in 2007-2008. He has been called a protégé of Robert Rubin, another Citibank multi-millionaire and Obama adviser.

    Orszag will join Carlos Gutierrez, George W. Bush's Secretary of Commerce on the Citibank Senior Strategic Advisory Group.  Orszag's duties at Citibank have been described as "murky at best", but they are sure to earn him far more than his government service. For a period of time, he will not be allowed to contact government officials in his work at Citibank, as part of government ethics rules to prevent government employees from unfairly exploiting their connections in government for profit.

    Orszag testified before Congress in 2008 on the possible bailout of Citibank and other institutions, and he expressed concern that some banks might be 'insolvent' under certain assessments, yet action was advised:

    "Ironically, the intervention could even trigger additional failures of large institutions, because some institutions may be carrying troubled assets on their books at inflated values," Orszag said in his testimony. "Establishing clearer prices might reveal those institutions to be insolvent.....If we did nothing, there is a significant risk of another collapse of confidence in the financial markets,"

    An article in the Atlantic has called the move by Orszag as an 'unfortunate decision'. The piece concludes that Orszag's move to Citibank may make one 'wince a little bit' when hearing the Obama campaign slogan 'Change We can Believe In".

    President Obama and Peter Orszag

    Comments

    NCD, thanks for the post. If there were ever an "in your face" job placement, this is it. A million or two in salary is nothing compared to the perks and most likely stock options. The only saving grace is that Orszag is not the household name Geithner is.

    I especially like the reference to "..Citibank has a great international platform". It's the international competiveness argument which helped the banks dump Glass-Steagall, etc.and supports the idea that they should become immeasureably larger.

    And what, Orszag is so greedy that he can't wait a couple of years before cashing in on his government experience? Is it any wonder the average citizen thinks the system is rigged--maybe that's because it is rigged. 

    Message to President Obama. This job placement stinks. I can't wait to see where Geithner lands.  


    If Obama works hard over the next two years, he too can hope for a promotion of this kind.

    Right now he is only President of the US.  But some day he can go to work for one of the big banks running the world.


    LOL!  I saw that yesterday, and we were laughing about it on one of the threads.  It really is just too rich; the administration doesn't even care about optics any more. 


    Actually, these are precisely the optics the administration is looking for.  They have been trying to boost their image among the business community and the Wall Street set:

    http://www.bloomberg.com/news/2010-12-09/obama-jpmorgan-s-dimon-met-at-w...

    We should expect another couple of years of Obama lecturing progressives on their sins while hugging bankers and CEOs.

    Expect him also to send more of his minions out into the blogosphere and other progressive hangouts to upbraid progressives for their selfish and self-indulgent advocacy of progressive causes, and to whip them onto the bus.

    This is all about the money and re-election now.   It looks like they are now very worried that the cash isn't rolling in the way it used to.  And some of the big money donors are unhappy:

    http://articles.latimes.com/2010/dec/09/nation/la-na-dem-donors-20101210

     


    Well then he'll likely go with Roger Altman, "Wall Street Banker", to replace Larry Summers rather than Levin or Sperling.  Looks like the 'business community' has played their hand pretty well.  Ay yi yi! 

    Yes, and into the blogosphere may come more Change,org commenters, even on sites like Dag.  ;o)


    I'm wondering if someone like Bernie will mount a third party effort. I thought Bernie's push against the banks was the best part of his monologue. The objective would be to force Obama's hand on the bank TBTF issue. I'm sure Bernie could raise internet money--I mean every election cycle has to have a Mr. Smith goes to Washington narrative, or a Mr. Smith in Washington goes rogue. 


    Robert Reich says 2012 may make 2010 look like a Democratic Party Pep Rally. I tend to agree. I plan on some sanctimonious satisfying symbolic shredding of my 'Obama Wins' copy of the NYT from Nov. 2008.


    Goddamn I am so sick of this:

    ...but they are sure to earn him far more than his government service

    We used to say:

    Goddamn the pusherman. Remember?

    http://www.youtube.com/watch?v=jMqVrUSz62o

     

    Well goddamn, goddamn the corporate/government revolving door.

    And now everyone can just say the dems are as bad as the repubs. And that leaves us where?


    Try this version, with the great - and incredibly apt - dialogue at the end. Easy Rider, baby.

    "I mean it's real hard to be free when you are bought and sold in the marketplace.

    http://www.youtube.com/watch?v=cVwzAOyIxRM


    Thanks Q, I got it playing on another tab right now.

    That is what the lobbyists are, pushermen and just because an ex governmental official has another title in the organization does not mean that he will not take advantage of 'old networks'!!!


    Government service is nothing more than a working vacation for these social miscreants.


    What is really sad is that there is absolutely no surprise in this at all.

    It's like waiting with bated breath to see what Christopher Dodd decides to do in his "retirement." Take up woodworking, do you suppose? Maybe making ships in a bottle? Wal-mart greeter, perhaps?


    Right. He can hit five insurance companies by throwing stones from his front porch. Too bad there are no TBTF banks in Conn. but a limo to the city takes a couple of hours. I assume he sold that house in Iowa, so rule that out. Then there's always the metro to Boston. He has lots of options. Woodwoking--probably not.


    Dollars to donuts, I'm betting he ends up with an office on K Street.


    Then we could hire him to be the peeps' lobbyist.


    Wouldn't work. That would raise a conflict of interest issue for his clients.


    God; you're thinkin' small, Jeezus.  Think of all the bank and corporate boards he can sit on!  And Special Consultancies for every imaginiable MICC think-tank and business and consortium!  Telcoms!  There's plenty good money to be made....  K Street is sooooo limiting....   Money mouth (that's 'money mouth'...)


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