Politics
              FILE - In this Feb. 15, 2011 file photo, Budget Director Jack Lew testifies on Capitol Hill in Washington. Two senior administration officials say the White House chief of staff, William Daley, is resigning. He  FILE - In this Feb. 15, 2011 file photo, Budget Director Jack Lew testifies on Capitol Hill in Washington. Two senior administration officials say the White House chief of staff, William Daley, is resigning. He's being replaced by Jacob Lew. (AP Photo/J. Scott Applewhite, File)   

Obama’s third chief of staff, like first two, got rich on Wall Street

Photo of Neil Munro
Neil Munro
White House Correspondent

Citigroup’s losses, however, were offset by a taxpayer rescue of the financial sector in 2008 and 2009. Since then, the financial industry’s profits have climbed to record levels.

Daley and Emanuel also played direct roles in the real estate bubble that was inflated from 1994 onwards by federal regulators seeking to steer Wall Street money into Democratic-dominated poor neighborhoods.

The process started under President Bill Clinton, but was redirected and accelerated by President George W. Bush, who wanted to bring Hispanic immigrants into the GOP. The resulting real estate boom — and bust — took down Wall Street in 2007, and helped elected Obama.

Daley played a role in the disaster because he was a board member of the government-backed mortgage giant, Federal National Mortgage Association, dubbed Fannie Mae. He served on that board from 1993 to 1997. That’s when the government-backed mortgage firm began to snap up mortgages from companies selling them to Americans, mostly minorities, who lacked the resources to repay the loans. In turn, Fannie Mae sold the increasingly toxic mortgages to Wall Street, and used its revenues to write yet more mortgages.

Emanuel was a board member of Fannie Mae’s twin, the Federal Home Loan Mortgage Company — more commonly called Freddie Mac — from 2000 to 2001, when he ran for Congress.

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