Treasury's Sperling and private sterling

by Mark Silva

Some of the Treasury Secretary's top financial advisers, helping the government oversee the $700-billion rescue of the nation's financial markets, know something about the risky businesses that the Obama administration has targeted for reform on his watch.

Gene Sperling, one of Treasury Secretary Timothy Geithner's senior advisers, collected $887,000 last year from Goldman Sachs and $158,000 for speeches delivered mostly to financial companies, including the one run by accused Ponzi scheme mastermind R. Allen Stanford, Bloomberg News reports. Another, Lee Sachs, reported more than $3 million in salary and partnership income from Mariner Investment Group, a New York hedge fund.

"While it isn't unusual for Treasury officials to come from the financial industry, President Barack Obama has been critical of Wall Street, blaming its high-risk, high-pay culture for helping cause the financial-market meltdown,'' Bloomberg notes.

Addressing financial executives last month, Obama said: "We will not go back to the days of reckless behavior and unchecked excess that was at the heart of this crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses."

Sperling and Sachs each are paid $162,900 at the Treasury. They are four others hold the title of counselor to Geithner - posts that require no Senate confirmation.
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"The use of counselors provides an opportunity to bring valuable expertise into the department to serve in a close capacity with the secretary," Rob Nichols, who served the Bush administration's Treasury Department, told Bloomberg. "It's important that they complement, but don't supplant, the Senate confirmed appointments."

On his disclosure firm, Bloomberg reports, Sachs estimated that he would receive $3.4 million in income from Mariner. Sachs's former firm also had agreed to repurchase his shares in Mariner Partners Inc., an investment fund. Sachs estimated his income from the fund at $1 million to $5 million. Sachs declined to comment for the Bloomberg report.

In Sperling's primary job, he was paid $116,653 by the Council on Foreign Relations for work related to education in developing countries. Sperling's disclosure shows he supplemented his salary through a variety of consulting jobs, board seats, speaking fees and fellowships, to bring his total income to more than $2.2 million in the 13 months ending in January. He was paid $480,051 as a director of the Philadelphia Stock Exchange and $250,000 for providing quarterly economic briefings to two hedge fund firms, Brevan Howard Asset Management LLP and Sterling Stamos Capital Management.

Sperling spoke at a Washington event hosted by the Houston- based Stanford Group Co. in November 2008, three months before its chairman was sued by the Securities and Exchange Commission for allegedly bilking investors of $7 billion. He also spoke at a Washington event in October 2007 that was sponsored by Citigroup, which has received $45 billion in government assistance.

Goldman Sachs paid Sperling the $887,727 for advice on its charitable giving. That made the bank his highest-paying employer

"My sole work for Goldman Sachs was as lead consultant on the creation, design, and initial implementation of '10,000 Women,' their $100 million philanthropic effort to give business and leadership education to poor women around the world," Sperling said.

Interesting footnote in the Bloomberg report: Sperling also drew a $137,500 salary from Bloomberg News for writing a monthly column and appearing on television.

The Post's "Who Runs Government'' notes that Sterling, "a former Clinton economic aide and National Economic Council director, Sperling joined Secretary of State Hillary Rodham Clinton's 2008 presidential campaign as an adviser. When Clinton failed to grab the Democratic nomination, Sperling's chances to join a Democratic presidential administration as a top staffer plummeted.

"But by working hand-in-hand with Geithner, Sperling, one of President Bill Clinton's economic "MVP['s]," will have a significant influence on how the Obama administration tries to steer the nation through the worst economic downturn since the Great Depression.''