Michael Froman, who is now U.S. trade representative but at the time was an executive at Citigroup, wrote an email to Podesta on October 6, 2008, with the subject “Lists.” Froman used a Citigroup email address. He attached three documents: a list of women for top administration jobs, a list of non-white candidates, and a sample outline of 31 cabinet-level positions and who would fill them. “The lists will continue to grow,” Froman wrote to Podesta, “but these are the names to date that seem to be coming up as recommended by various sources for senior level jobs.”
The cabinet list ended up being almost entirely on the money. It correctly identified Eric Holder for the Justice Department, Janet Napolitano for Homeland Security, Robert Gates for Defense, Rahm Emanuel for chief of staff, Peter Orszag for the Office of Management and Budget, Arne Duncan for Education, Eric Shinseki for Veterans Affairs, Kathleen Sebelius for Health and Human Services, Melody Barnes for the Domestic Policy Council, and more. For the Treasury, three possibilities were on the list: Robert Rubin, Larry Summers, and Timothy Geithner.
This was October 6. The election was November 4. And yet Froman, an executive at Citigroup, which would ultimately become the recipient of the largest bailout from the federal government during the financial crisis, had mapped out virtually the entire Obama cabinet, a month before votes were counted.
.. Many already suspected that Froman, a longtime Obama consigliere, did the key economic policy hiring while part of the transition team. We didn’t know he had so much influence that he could lock in key staff that early, without fanfare, while everyone was busy trying to get Obama elected. The WikiLeaks emails show even earlier planning; by September the transition was getting pre-clearance to assist nominees with financial disclosure forms.
.. The “Bob Rubin school” is named for the former top executive at Goldman Sachs and Citigroup and first Clinton administration Treasury secretary. It is composed precisely of the kinds of Democrats that the Warren wing opposes on domestic policy, particularly on financial matters. In the Obama administration, that school won out. Froman, chief of staff to Rubin at Treasury, gave options for Treasury secretary that ranged from Rubin himself to Summers and Geithner, two of his key protégés.
.. The Rubin school dictated the Obama administration’s light-touch policy on bank misconduct
.. Peter Orszag this week suggested a trade-off: Give the Warren wing its choices on personnel, in exchange for more leeway to negotiate an infrastructure package with Republicans that gives big tax breaks to corporations with money stashed overseas.