As I mentioned earlier in the week, former IMF chief economist Simon Johnson, who now teaches at MIT, brings a slightly different perspective to the U.S. banking crisis, that of someone who has studied and been involved with resolving financial crises in developing nations. From that perspective, a key step in permanently resolving the crisis involves wresting control of the banking system from the elites who were at the helm when the crisis occurred, a step, Johnson argues, that neither the U.S. nor any other western nation has yet been willing to take:
According to our Matt Cooper, Gregg called New Hampshire Gov. John Lynch (D) a few hours ahead of releasing his withdrawal statement to alert him. But the White House appeared blindsided by the Gregg withdrawal, according to various reports, so much so that some officials were first learning of the news from reporters.
A Democratic Hill staffer writes in:
It’s hard not to think that Gregg’s withdrawal, with the grumbling about the census and the stimulus, was not timed to cause the most damage possible to the Obama administration. Releasing the statement just as Obama took the stage in Peoria was clearly designed to undermine the President’s event. The fact he scheduled a presser only seems to confirm it. The classy exit would have been to wait til tomorrow afternoon to quietly bow out. Basically Gregg decided not just to politely decline, but rather to blow shit up and burn the bridge behind him. Do not think this portends good things for the wider political climate.
If the larger GOP strategy can be describe as putting all of their chips on “FAIL”, this has to be seen as a significant addition to that pile, no?
Late Update: For his part, Gregg said at a press conference just now that he gave the White House “fair warning” of his withdrawal.
Chris Dodd is penning a book on how, as chairman of the Senate Banking Committee, he saved the world from financial collapse last September.
Judd Gregg tells Politico: “The fault lies with me. … I may have embarrassed myself but hopefully not [Obama].”
Statement from the White House:
“Senator Gregg reached out to the President and offered his name for Secretary of Commerce. He was very clear throughout the interviewing process that despite past disagreements about policies, he would support, embrace, and move forward with the President’s agenda. Once it became clear after his nomination that Senator Gregg was not going to be supporting some of President Obama’s key economic priorities, it became necessary for Senator Gregg and the Obama administration to part ways. We regret that he has had a change of heart”.