White House to Daley: No contact with J.P. Morgan

Amanda Carey Contributor
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On Wednesday, the White House announced that President Obama’s new chief of staff, Bill Daley, can have no contact with JP Morgan during his tenure in the administration. Before accepting the position at the White House, Daley served as the Midwest chairman of the financial firm.

According to the Wall Street Journal, the deal was made to quell speculation that Daley’s standing with the company could result in unfair and excessive access to the Obama administration and its top officials. There are numerous upcoming policy decisions that will have a direct effect on J.P. Morgan.

Implementation of the Dodd-Frank financial reform bill (of which J.P. Morgan played a role in shaping) is underway, and proposals on how to reform Fannie Mae and Freddie Mac are expected soon. Those two government-backed entities buy mortgages from banks like J.P. Morgan.

One of Daley’s first orders of business is to sell off his $7.7 million worth of J.P Morgan stocks, per government requirements.