Demoskratos

Once again, it is revealed that President Obama’s administration has proved less than stellar compared to his campaign promises of changing Washington DC.  Since swearing into office and to uphold the duties for which he was elected for, President Obama has made dubious decisions in choosing the appropriate people to fill the top posts in his administration.  Many were marred with tax scandals as they appeared before Congress and some had to withdraw their nominations due to allegations of unpaid taxes or great conflict of interests.  Even within 24 hours of declaring a new policy to stem conflict of interest, he had to make an executive exception to the nominated Deputy Director of Defense William Lynn, a former Raytheon executive.

The latest scandal to hit the Obama administration is Larry Summers, who has now reported receiving millions of dollars from the very same industry and corporate entities which he is assisting with his policy and regulatory advice to President Obama and Congressional leaders.  It was already with great controversy that Treasury Secretary was nominated given criticism that he failed as the President of the NY branch of the Federal Reserve system to watch over the financial system and avoiding collapse.  In addition, Geithner faced also back tax scandals.

Many critics believe that between Summers and Geithner, the two are a power couple that are too close to the industry to be impartial and to do what is right for the country and all Americans.  Meanwhile, the US Government is spending trillions in an unprecendeted effort to save the financial system.  But really, have other simpler, less costly to the American taxpayers and more effective been really explored or even contemplated?

Write to President Obama and demand for change and transparency.

Summers Earned Millions in D.E. Shaw Salary, Bank Speech Fees

April 4 (Bloomberg) — Lawrence Summers, director of President Barack Obama’s National Economic Council, earned millions working at a hedge fund and speaking to banks such as Citigroup Inc. that later received taxpayer bailout money.

Hedge fund D.E. Shaw & Co. paid Summers more than $5 million in salary and other compensation in the past 16 months, according to a financial disclosure form released by the White House yesterday. Summers served as a managing director at the New York-based firm. Summers, a former Treasury secretary, also earned more than $2.7 million in speaking fees.  [Read Full Article]

Eddie Lampert ex-Goldman Sach’s Executive Turned Hedge Fund Founder…A Retail Genius?

Sears Holdings, the third largest US retailer, on Thursday highlighted the growing pressures it will face this year from mandatory payments to its pension plan, following the steep decline in asset values seen last year.  The retailer said that it had made cash contributions of $224m to its pension plan in its financial year ending on January 30, as it seeks to meet federal requirements to ensure that pensions are fully funded by 2011.

….However, Mr Lampert also called on Congress to ease pension plan regulations to give companies additional time to make required cash contributions to make up losses caused by the financial turmoil….

So basically, Lampert wants help to bailout his obligations to employees or find some loophole to stiff the employees after he has taken over Sears using his ESL Hedge Fund and ran it into the ground.  Of course Wall St and the financial analysts calls him the next Warren Buffett at the time.

Sears under Lampert’s leadership has performed miserably ever since he has assumed the role of its Chairman.  Many retail experts believes he simply doesn’t understand how to be a retail operator.  Even when the stock has shed 80% of its value,  Eddie Lampert continues to play the blame game but himself.

Meanwhile, “Venture capitalist William “Bill” Ackman, founder and CEO of investment and hedge fund firm Pershing Square, has announced to the chagrin of Target’s board and management that he shortly will wage a proxy battle for control of the discount-store giant.”, as reported by “Weekly Retail Fix” of Retailing Today.  Ackman’s hedge fund has accumulated 10% of Target’s stock since April 2007 and is attempting to muscle its way into the company’s board.  What does Target executives and current board think?

We are disappointed that Pershing Square has decided to pursue a costly and disruptive proxy contest, especially in light of our previous dialogue. Target has a long history of being responsive to shareholders and has engaged in numerous discussions with Pershing Square over a 20 month period.

So you think Government should be sympathetic and soft on regulation?  Is leverage of a perfectly healthy company such as Target in the best long term interests of shareholders, the economy, and American employment?