President Obama's Chief of Staff received an invitation to speak at JP Morgan's board meeting. The company moved it to Washington, D.C., reducing Rahm Emanuel's travel time to the elite gathering. What might they talk about? Future financial regulation, buying/auctioning TARP stock warrants, the next Fed Chair, and/or donations to Rahm's blue camp.
Warrants are likely high on the list from Jamie Dimon's perspective. Reuters reported:
The 10-year warrants were meant to allow taxpayers to share the upside as banks recover.Did "share the upside" shift?
A Treasury representative said the government wants to dispose of warrants "in a manner that protects taxpayers."That sounds like two different aims. The government sold warrants back to smaller banks at 66% of their value. On whose behalf will Rahm Emanuel work?
Given the state of financial products, might the cabal meet next time in Las Vegas? Rahm says it's OK. What happens in Vegas, stays in Vegas. I expect the same outcome from Rahm's JP Morgan talk.
(Note: Rahm Emanuel declined the invitation per advice from White House lawyers)