Erskine B. Bowles

Erskine B. Bowles has been a director of Morgan Stanley "since December 2005. He was elected President of The University of North Carolina effective January 1, 2006. He has been a Senior Advisor to Carousel Capital, a private investment firm, since September 2001, and served as a Managing Director from March 1999 to September 2001. Mr. Bowles was a General Partner of Forstmann Little & Co., a private investment firm, from March 1999 to September 2001. He served in the Administration of President Clinton as head of the Small Business Administration and White House Chief of Staff. He was the United Nations Deputy Special Envoy for Tsunami Recovery with the rank of Under Secretary General in 2005. Mr. Bowles worked at Morgan Stanley from July 1969 to January 1972. He is a director at General Motors Corporation, Cousins Properties Incorporated and North Carolina Mutual Life Insurance Company. A graduate of The University of North Carolina, he has an MBA from Columbia."

Wall Street Ties

While Erskine Bowles was Chief of Staff for a time for President Bill Clinton and attempted to run for office himself a few times in his native state of North Carolina, he has spent most of his career as a financial adviser on Wall Street.

In 2012, Bowles was a senior financial advisor to the private equity firm, BDT Capital. Previously he worked for a series of private investment firms, Carousel Capital LLC , Forstmann Little & Co , although he began his career in corporate finance at Morgan Stanley according to Forbes.

Bowles started his career at Morgan Stanley. He later served as a board member of Morgan Stanley through out the entire financial crisis, a firm that was implicated in all the activities that lead to the 2008 financial crisis.

In 2006 the bank bought Saxon Capital, dubbed the “King of Subprime” loans so that Morgan Stanley could gain access to subprime mortgages and repackage them into complex investment vehicles. When the crash came Morgan teetered on the brink. It borrowed $10 billion from the TARP bailout programs and paid the money back with great fanfare in January 2009. However it was revealed years later that the bank was secretly bailed out by the Federal Reserve to the tune of $100 billion, an amount only discovered by a Bloomberg lawsuit against the Federal Reserve.

Subsequently, the firm doled out millions since to settle claims of electricity price fixing and for engaging in illegal off-exchange trading. The trouble never ends at Morgan Stanley,in 2012 they were sued by the ACLU for violating civil rights laws by encouraging a lender to push more expensive and risky mortgages on black neighborhoods in Detroit.

The Commission on Fiscal Responsibility

In 2010, Bowles co-chaired, along with Alan Simpson, the National Commission on Fiscal Responsibility and Reform, which put forward a deficit reduction plan that generated a great deal of controversy. The plan included 70 recommendations on raising taxes and cutting programs, but it failed to garner majority support of the Commission. A report was released on December 1, 2010,[3] but failed a vote on December 3 with 11 of 18 votes in favor, with a supermajority of 14 votes needed to formally endorse the blueprint.[4] FN WIKI In January 2010, that bill failed in the Senate by a vote of 53–46, when six Republicans who had co-sponsored it--joined with 23 Democratic Senators in the Senate at large--nevertheless voted against it.

The plan contained painful austerity measures that critics contended would further weaken the economic recovery. The plan called for cuts in benefits for the elderly, veterans, and many government employees. Most importantly it would have cut the Social Security “cost of living” or COLA increase. Reduced COLA would amount to a benefit cut of close to 3% for a typical retired worker. Since the median income for households of people over age 65 is just $31,000, this would be a big hit to a segment of the population that is already struggling.

Under Consideration as U.S. Treasury Secretary

Bowles has made many short lists for replacing U.S. Treasury Secretary Tim Geither in President Obama’s second term in office.

Economist [ http://www.guardian.co.uk/commentisfree/2012/sep/10/erskine-bowles-wall-street-influence-washington Dean Baker comments: “Erskine Bowles gives us a real trifecta. He used his position as co-chair of President Obama's deficit commission to protect Wall Street. He pockets millions as part of a flawed system of corporate governance that allows CEOs to rip off the companies they run. And he wants to reduce social security benefits for seniors who are already living on the edge.”