If the Republican Party hadn’t nominated a man whose favorite pastimes (apparently) include
committing sexual assault and then bragging about it, the Clinton campaign would be having a very bad Saturday.
Between the end of her tenure as secretary of State and the launch of her presidential campaign, Hillary Clinton earned millions of dollars giving closed-door speeches to financial firms and other private entities. This was a risky enterprise for an aspiring presidential candidate to pursue. Nearly a decade after the financial crisis, Wall Street
remains an object of scorn with a large swath of the American public; the idea that our government is too cozy with the big banks has purchase among voters of both parties. So, taking large sums of money to speak at the private functions of Wall Street banks — including ones
that admitted to defrauding investors in the run-up to the crash — was never going to be a great look in 2016.
And then, Bernie Sanders made it a worse look. Or, at least, a more conspicuous one. Vermont’s favorite democratic socialist was uniquely well-positioned to exploit Clinton’s liability (leftwing gadflies don’t get many speaking invitations from Goldman Sachs and BlackRock). Throughout the Democratic primary, Sanders called on Clinton to make the transcripts of her remarks public. The front-runner refused, apparently deciding it was better to give credence to Sanders’s suggestion that she had something to hide, than to reveal the sentiments she shared with Lloyd Blankfein and friends.
But her campaign prepared for the possibility that those sentiments would become public, nonetheless. In January, Clinton’s research director Tony Carrk combed through the candidate’s paid speeches, flagged the most potentially damaging excerpts, and framed each as a rival opposition researcher might. He emailed this self-oppo to Clinton campaign chairman John Podesta, whose account would later be hacked.
And so, late Friday afternoon — as Billy Bush and Donald Trump were discussing the art of groping married women on every nightly newscast —
Buzzfeed’s Ruby Cramer dug up those excerpts from Wikileaks’s latest trove of hacked emails.
Nothing in Clinton’s private remarks is more politically toxic than the worst of her opponent’s public ones. But in the alternative universe where the GOP nominated John Kasich, this is a rough October surprise.
First, there’s the stuff that threatens to demobilize her leftwing skeptics. After securing the nomination, Clinton sought to make peace with the Sandernistas by moving in the socialist senator’s direction on healthcare and higher education. But policy concessions only matter if the voters you’re hoping to win over
trust you to pursue those policies. And, after Sanders spent much of the primary raising doubts about the sincerity of Clinton’s positions on trade and financial regulation, a portion of his base still distrusts the Democratic nominee.
Clinton’s remarks before the National Multi-Housing Council in 2013 could swell the ranks of such skeptics:
I mean, politics is like sausage being made. It is unsavory, and it always has been that way, but we usually end up where we need to be. But if everybody’s watching, you know, all of the back room discussions and the deals, you know, then people get a little nervous, to say the least.
So, you need both a public and a private position.
There are more and less benign ways of interpreting this quote. Vox’s
Matt Yglesias provides one of the former, noting the beneficent role secrecy played in facilitating the passage of agreements on education policy and the federal budget in Congress last December:
The key to both pieces of legislation was to be worked on quietly out of public view. And in the case of the budget deal, members of congress tell me that absolute secrecy — not just from the public but from the not-involved members themselves — was critical to success. The problem is that a public debate would necessarily have become an exercise in position-taking, which is antithetical to compromise. In private, members can admit that they care about some things more than others and find a way to reach an accommodation.
But read in combination with other leaked excerpts, Clinton’s tribute to the virtues of betraying one’s public position while making back room deals becomes more damaging.
In
her DNC speech, Clinton said she believed that “Wall Street can never, ever be allowed to wreck Main Street again.” But in a 2013 speech to Goldman Sachs, Clinton seemed to doubt that Wall Street had ever “wrecked Main Street” in the first place:
That was one of the reasons that I started traveling in February of ‘09, so people could, you know, literally yell at me for the United States and our banking system causing this everywhere.
Now, that’s an oversimplification we know, but it was the conventional wisdom. And I think that there’s a lot that could have been avoided in terms of both misunderstanding and really politicizing what happened with greater transparency, with greater openness on all sides, you know, what happened, how did it happen, how do we prevent it from happening? You guys help us figure it out and let’s make sure that we do it right this time.
Imagining the worst possible frame a rival could put on this excerpt, Carrk titled it, “CLINTON TALKS ABOUT HOLDING WALL STREET ACCOUNTABLE ONLY FOR POLITICAL REASONS.” That may not be the fairest summary of the quote. As
Slate’s Jordan Weissman notes, there’s a subtle criticism of the finance industry’s lack of transparency embedded in the remarks.
Nonetheless, the suggestion that outrage at the U.S. banking system for its role in the financial crisis was based in “misunderstanding” and “politicizing” is risible. Here’s what
one U.S. bank was up to seven years before Clinton’s speech:
In April 2006, Goldman Sachs provided investors with a bullish report on Countrywide’s high-quality mortgage loans — loans the bank had helpfully packaged into AAA-rated mortgage-backed securities, thereby offering those lucky clients a low-risk way of profiting from America’s housing boom. When the bank’s head of “due diligence” saw the report, he typed a short email to his colleagues: “If only they knew…”
You need both a public and a private position.
In April 2015, Clinton
announced her support for a Senate bill aimed at closing the “revolving door” between Wall Street and the agencies tasked with regulating it. “If you’re working for the government, you’re working for the people — not for an oil company, drug company, or Wall Street bank or money manager,” Clinton wrote, in an op-ed co-authored with senator Tammy Baldwin.
But speaking with Goldman Sachs CEO Lloyd Blankfein at the firm’s builders and innovators summit in 2013, Clinton suggested Wall Street money managers who wish to serve in government should face
fewerregulatory obstacles than they currently do:
But, you know, part of the problem with the political situation, too, is that there is such a bias against people who have led successful and/or complicated lives. You know, the divestment of assets, the stripping of all kinds of positions, the sale of stocks. It just becomes very onerous and unnecessary.
In a separate speech to Goldman that same year, Clinton suggested that
only Wall Street veterans were qualified to regulate their industry:
There’s nothing magic about regulations, too much is bad, too little is bad. How do you get to the golden key, how do we figure out what works? And the people that know the industry better than anybody are the people who work in the industry.
Clinton’s current platform calls for an expansion of Social Security, but in 2013 she praised the Simpson-Bowles deficit reduction plan — which called for Social Security
cuts — in remarks to Morgan Stanley.
...
If these speeches became public two weeks ago, they might have
amplified fears that disaffected, left-leaning millennials would “throw away” their votes to third party candidates and, thus, throw the presidency to Donald Trump. But in the post-
grab’em by the pussy world, the inclinations of such voters don’t seem to matter much