7thriv

The NY Times profiles JP Morgan's James Dimon, but completely misses a bigger story within the story sitting right there on the front page: In Washington, One Bank Chief Still Holds Sway

Jamie Dimon, the head of JPMorgan Chase, will hold a meeting of his board here in the nation’s capital for the first time on Monday, with a special guest expected: the White House chief of staff, Rahm Emanuel.

Mr. Emanuel’s appearance would underscore the pull of Mr. Dimon, who amid the disgrace of his industry has emerged as President Obama’s favorite banker, and in turn, the envy of his Wall Street rivals. It also reflects a good return on what Mr. Dimon has labeled his company’s “seventh line of business” — government relations.

The business of better influencing Washington, begun in late 2007, was jump-started just as the financial crisis hit and the capital displaced New York as the nation’s money center. Then Mr. Obama’s election brought to power Chicago Democrats well-known to Mr. Dimon from his recent years running a bank there.

One of them is Mr. Emanuel, who has accepted the invitation to speak to the board pending a review by the White House counsel.

Rahm, you don't need advice from the White House counsel; you need a clout in the ear. There is no way that this is a good idea. People already think there is an untoward relationship between the Bailed Out and Big Government. Indeed, Simon Johnson's idea that the government's balance sheets have essentially been captured by corrupting financiers trying to protect their positions has come dangerously close to becoming a mainstream idea. Now you propose to "address" a board meeting (behind closed doors, naturally) for a bank that has profited handsomely from last year's chaos at the expense of its less well-connected rivals, while bragging about its robust DC lobbying efforts?

For a Republican chief of staff, this would be a no-brainer; he wouldn't speak in front of this bank's board of directors. The "GOP Culture of Corruption" headlines write themselves. I know that progressives think that their platitudinous politics insulate them from the sort of "corruption" charges that are the part of any GOP politicos' resume'. But, Rahm, I don't think there are enough Gay Pride Parades for you to march in to protect you from the appearance of impropriety here.

Dimon, unsurprisingly, is described as a major donor to the Democratic Party, and comes complete with the inevitable "Chicago connection." And you say he is Obama's "favorite banker?" Imagine that.