President Obama came to office promising to increase government’s involvement in Wall Street, and to slow the revolving door. These are mutually exclusive aims, and Obama has utterly failed on the latter score.
When government increases its involvement in industry — more bailouts, more subsidies, more regulations, more complex tax laws — industry will increase its ties with government.
Politico’s Ben White has a good story saying “Wall Street increasingly needs to understand — and shape — the way Washington works.” White finds that more and more Washington policymakers are ending up on Wall Street. One highlight:
The latest example of the DC-to-NY transfer came last month as Morgan Stanley announced it had hired Michele Davis as a managing director and global head of corporate affairs.
Davis, who served as a chief adviser to Treasury Secretary Hank Paulson (a former Goldman CEO) during the height of the financial crisis, will report directly to Tom Nides, a DC veteran and former top aide to Hillary Clinton at the State Department, and to chief executive James Gorman. In an internal memo announcing the hire, Nides and Gorman praised Davis — portrayed by Cynthia Nixon in the movie “Too Big to Fail” — for her successful career at the “nexus of political and financial media.”