Saturday, May 9, 2009

Geithner Appointed by Pete Peterson

Eliot Spitzer indicated Tim Geithner's appointment to the New York Fed came from heavy hitters. Peter G. Peterson was Chair of the Board that nominated Geithner.

March 3, 2009 Geithner had lunch with Bob Rubin of Citibank and Pete Peterson at the Four Seasons in Manhattan

March 25, 2009 Geithner speaks at the Council on Foreign Relations. Politico reported:

Geithner began with praise for his former colleagues at the New York Fed and with a joke aimed at Pete Peterson, a CFR patron, about his contributions to the organization. Geithner also gave a hat-tip to Peterson that may rankle some of Peterson's critics on the left, who oppose his push to cut spending on Social Security and Medicare.

"We are all fiscal hawks now because of Pete Peterson," Geithner said, at least half-joking. "There are no doves left."

In December Spitzer called Geithner "the status quo." Pete Peterson is a private equity underwriter (PEU). He co-founded the Blackstone Group. Pete netted billions when he took part of Blackstone public.

The Blackstone Group works with other high dollar, political insiders. In 2000 they formed a strategic relationship with Kissinger McLarty Associates. Mack McLarty is Senior Adviser for a different politically connected PEU, The Carlyle Group.

President Obama signed a bill dedicated to Carlyle co-founder David Rubenstein. With the numerous interconnections, the PEU boys are in a sweet spot to avoid coming financial regulation. It could get sweeter, if Congress appoints Carlyle Senior Adviser Arthur Levitt to head the Financial Implosion Study Group.