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11/22/2024 08:57:36 am

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Warren Criticizes Washington’s Revolving Door, Weiner Dismissal And Cantor’s Wall Street Post

Sen. Elizabeth Warren

(Photo : REUTERS/Joshua Roberts) Sen. Elizabeth Warren denounces revolving door between Washington and Wall Street.

Sen. Elizabeth Warren reiterated her stance against the revolving door between Washington and Wall Street days after former Democratic Congressman Anthony Weiner dismissed her concerns as petty and overblown.

The disagreement came about after former House Majority Leader Eric Cantor resigned his post to take up a position with investment firm Moelis & Co. earlier this month. This is not an isolated case, Warren said in an op-ed published at The Huffington Post on Wednesday.

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Warren says the main point of contention in the revolving door culture lies in the fact that when former public servants venture into Wall Street, it allows these big financial institutions to gain a role in economic policy making.

Cantor's qualification as part of a financial firm isn't dependent on experience since he has little to none but rather on his ability to influence peddling and lobbying, Warren states.

"When former Congressmen call, when a Senator's ex-Chief of Staff is on the line, when someone who worked on the Banking Committee for years calls, it's hard to ignore them," she adds.

In 2009, 1,447 public-servant-turned-financial-services-employee lobbied efforts for Wall Street, according to the Public Citizen and the Center for Responsive Politics. The 73 top lobbyists from that figure were identified to have been former lawmakers.

A 2010 report from the Institute for America's Future found that six of Wall Street's largest banks had employed 243 lobbyists who had previously worked with the government, including 54 who served as aides for banking oversight boards in Congress and 33 former chiefs of staff of congressional members.

One of the dangers of this culture the op-ed cites is Groupthink which limits the overall view of a certain group and discourages innovative ideas from developing.

For instance, mega-bank firm Citigroup - by hiring several former public servants including Treasury secretaries, a National Economic Council Director and Office of Management and Budget Director - has invariably blocked out others who could have potentially offered a fresh perspective to the service.

The government should be able to serve everyone, not just those who can afford to hire former public servants, lawyers and lobbyists, Warren argued.

"If we want Washington to work better for families, we need to limit Wall Street's outsized influence in economic policymaking," she said.

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