Jeffrey Immelt? Seriously?

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I’m trying to figure out if I should care about this:

President Obama announced Friday that he is forming a new economic advisory council and hailed the business leader he has appointed to head it, General Electric chief executive Jeffrey Immelt, as an innovator who can advance its core mission of promoting job creation and competitiveness.

On the one hand, Immelt is already on the existing version of this board, and it doesn’t seem to be a very influential position anyway. So if Obama wants to suck up to the business community by appointing Immelt chairman, there’s no real harm done.

On the other hand, seriously? The head of General Electric? A company that long ago became as much shadow bank as industrial manufacturer? A company that was right at the center of the 2008 financial meltdown? A company that was part of the TARP bailout? Mike Konczal points us to Raj Date’s paper last year about the potential impact of the Senate financial reform bill:

Considering the “Killer G’s” — Goldman Sachs, GMAC, and GE Capital — can be especially instructive. Their business models are quite different from each other, but they share crucial common features: each was a shadow bank that ex-ploited a regulatory loophole to avoid bank holding company supervision; each took on substantial credit or liquidity risk during the bubble; each faced the possibility of catastrophic capital or liquidity shortfalls; and each was deemed too big to fail and rescued by taxpayers.

….GE Capital is the most instructive example in this category. The firm, a major subsidiary of the giant industrial conglomerate General Electric, is one of the largest U.S. shadow banks, and had more than $620 billion in assets at the end of 2007. Because of GE’s high-quality credit rating, GE Capital was able to satisfy most of its immense borrowing needs, during the bubble, in the capital markets. As the crisis developed, and capital market conditions tightened, GE leaned heavily on both Fed and FDIC emergency liquidity programs.

[Etc.]

Substantively, the Immelt appointment probably doesn’t matter much. But symbolically? It’s hard to imagine a much worse choice. Was Joseph Cassano not available or something?

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THE BIG PICTURE

You expect the big picture, and it's our job at Mother Jones to give it to you. And right now, so many of the troubles we face are the making not of a virus, but of the quest for profit, political or economic (and not just from the man in the White House who could have offered leadership and comfort but instead gave us bleach).

In "News Is Just Like Waste Management," we unpack what the coronavirus crisis has meant for journalism, including Mother Jones’, and how we can rise to the challenge. If you're able to, this is a critical moment to support our nonprofit journalism with a donation: We've scoured our budget and made the cuts we can without impairing our mission, and we hope to raise $400,000 from our community of online readers to help keep our big reporting projects going because this extraordinary pandemic-plus-election year is no time to pull back.

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