Keep the change 0

 Jonathan Weil writes at  Bloomberg-com:

It’s hard to believe Barack Obama would even think of calling this change.

Take a good look at some of the 17 people our nation’s president-elect chose last week for his Transition Economic Advisory Board. And then try saying with a straight face that these are the leaders who should be advising him on how to navigate through the worst financial crisis in modern history.

First, there’s former Treasury Secretary Robert Rubin. Not only was he chairman of Citigroup Inc.’s executive committee when the bank pushed bogus analyst research, helped Enron Corp. cook its books, and got caught baking its own. He was a director from 2000 to 2006 at Ford Motor Co., which also committed accounting fouls and now is begging Uncle Sam for Citigroup- style bailout cash.

Two other Citigroup directors received spots on the Obama board: Xerox Corp. Chief Executive Officer Anne Mulcahy and Time Warner Inc. ChairmanRichard ParsonsXerox and Time Warner got pinched years ago by the Securities and Exchange Commission for accounting frauds that occurred while Mulcahy and Parsons held lesser executive posts at their respective companies.

Mulcahy and Parsons also once were directors at Fannie Mae when that company was breaking accounting rules. So was another member of Obama’s new economic board, former Commerce Secretary William Daley. He’s now a member of the executive committee at JPMorgan Chase & Co., which, like Citigroup, is among the nine large banks that just got $125 billion of Treasury’s bailout budget.

There’s More

Obama’s economic crew might as well be called the Bailout Bunch. Another slot went to former White House economic adviser Laura Tyson. She’s been a director for about a decade at Morgan Stanley, which in 2004 got slapped foraccounting violations by the SEC and a month ago got $10 billion from Treasury.

That’s not all. There’s Penny Pritzker, the Obama campaign’s national finance chairwoman. She was on the board of the holding company for subprime lender Superior Bank FSB. The Chicago-area thrift, in which her family held a 50 percent stake, was seized by the Federal Deposit Insurance Corp. in 2001. The thrift’s owners agreed to pay the government $460 million over 15 years to help cover the FDIC’s losses.

Even some of the brighter lights on Obama’s board, like Warren Buffett and former SEC Chairman William Donaldson, come with asterisks. Buffett was on the audit committee of Coca-Cola Co.’s board when the SEC found the soft-drink maker had misled investors about its earnings. Donaldson was on the audit committee from 1998 to 2001 at a provider of free e-mail services called Mail.com Inc. Just before he left the SEC, in 2005, the agency disciplined the company over accounting violations that had occurred on his watch.

So, by my tally, almost half the people on Obama’s economic advisory board have held fiduciary positions at companies that, to one degree or another, either fried their financial statements, helped send the world into an economic tailspin, or both.

There’s still more. We recommend that you read the whole thing.