Ward on Words

On Sunday, the NY Time reported that Rahm Emanuel, Obama's chief of staff, was going to be attending JP Morgan Chase's board meeting. Today, he's changed his mind . In a world where appearances mean so very much, having a key Obama operative hanging out with Jamie Dimon and the others who've profited so very nicely from the collapse of the economy might send a wrong signal. I'm left wondering what Rahm was going to be doing at the meeting. Perhaps asking for a refund? Suggesting that Chase share its profits with the middle class that's been royally screwed by the crisis? Or cementing the feel-good relationship between Washington and Wall Street? We'll never know for sure.

As part of Paulson's Troubled Asset Relief Plan, JP Morgan Chase received $25 billion from the feds last October, making it one of the largest recipients of TARP funds. In his October 10, 2008 press release defining the plan, Paulson assured the public that "this is an investment, not an expenditure, and there is no reason to expect this program will cost taxpayers anything." Paulson, of course, was referring to the investment costs of TARP - and apparently felt that his plan would be a good deal for consumers. As he said in his press release: "We expect all participating banks to continue to strengthen their efforts to help struggling homeowners who can afford their homes avoid foreclosure. Foreclosures not only hurt the families who lose their homes, they hurt neighborhoods, communities and our economy as a whole." Back in those days, the housing crisis was the great issue confronting the Treasury Secretary - all those many loans handed over to consum...