O'Neill has a cozy relationship with analysts and investments bankers. They donated large
sums of money to The Bushy Jr. campaign. AND they were the ones who promoted all those .com companies. Remember? Many SI Investors lost money on the advice of analysts. Here's an article about O'Neill relationship to a few of those companies..-Mephisto
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Wall St. Advocacy Group Gets White House Help
Treasury Secretary to Address Coalition That Plans to Promote Social Security Privatization
Political reform activists said that from the administration's perspective, O'Neill's embrace of the Wall Street group could backfire by drawing attention to the financial rewards available to financial services companies, RATHER THAN THE BENEFITS FOR ALL AMERICANS.
By John Mintz
Washington Post Staff Writer
Sunday, June 17, 2001; Page A02
"Treasury Secretary Paul H. O'Neill will be the keynote speaker at a luncheon Monday for a new organization of Wall Street companies that will promote the privatization of Social Security, a policy shift that would bring the firms billions of dollars in fees and commissions" .
The new group, the Coalition for American Financial Security, plans to raise funds "in $100,000s and $250,000s" from insurance companies, mutual fund firms, financial services businesses and the like, said a business executive knowledgeable about the effort.
The luncheon at Manhattan's Windows on the World restaurant, which is expected to draw representatives from about 50 Wall Street firms, is not a fundraiser, but rather a kickoff event for the group.
Financial solicitations will come later, people connected to the effort said. At this point, the coalition plans to launch town hall meetings and an Internet site for its cause, but not to broadcast TV or radio ads.
A spokesman for O'Neill said Bush administration officials see nothing out of the ordinary with O'Neill's addressing the group about a policy change the administration supports.
"He speaks to many coalition groups that favor the administration's agenda," said Treasury spokeswoman Michele Davis, citing as an example an activist group that pushed for tax cuts. "That's part of his job, talking to groups that share your agenda," she added.
It has become commonplace for activists and business groups to organize new entities to lobby or mount public education campaigns. But the twist here is that the coalition has enlisted help from the executive branch in the person of the Treasury secretary, who holds a fiduciary responsibility over the Social Security system. A business executive working with the coalition said that persuading O'Neill to lend credence to its efforts was "quite a coup."
In this case, the Bush administration and Wall Street share an interest in allowing workers to set aside part of their Social Security taxes for private investment -- financial firms would make huge sums off the reform, and the Bush administration would advance its political and policy agenda.
Political reform activists said that from the administration's perspective, O'Neill's embrace of the Wall Street group could backfire by drawing attention to the financial rewards available to financial services companies, rather than the benefits for all Americans.
"If you want to build credibility for this enormously controversial change to the Social Security system, it doesn't seem the best way to do it is by linking up with the industry that will make enormous profits from the change," said Fred Wertheimer, president of Democracy 21, which promotes campaign and political reform.
The coalition was founded by financial services and money management companies, including Frank Russell Co., creator of the Russell 2000 stock indexes; Mellon Institutional Asset Management; State Street Global Advisors; and Brinson Partners. Among the other early members that paid $5,000 to join is Caterpillar Inc.
Other firms expected to send representatives to Monday's event include an insurance firm, American International Group, as well as Morgan Stanley, Deutsche Bank, the American Skandia investment firm and the Financial Services Forum, a banking group whose new president is former GOP representative Rick Lazio of New York.
During the Clinton administration, Treasury Secretary Robert E. Rubin caused a stir when it was learned he had attended a White House gathering over coffee, arranged by the Democratic National Committee, with chief executives of large banks.
In 1994, the Democrats also helped fund and organize a group to promote President Bill Clinton's health-care policy agenda, and it received briefings from administration officials, before the Clinton plan was defeated in Congress.
© 2001 The Washington Post Company |
