Wall Street breakfast leftovers
Revolving door continues. Citigroup (C) is rumored to be in advanced talks to hire Peter Orszag, who served as budget director for the Obama administration until he stepped down in July 2010. Sources said Orszag might take a job in Citi’s I-banking division and an announcement could come as soon as today. Citigroup, which is still recovering from its $45B bailout, would be only the latest in a long string of companies that have poached workers from the political sector, and of employees who have bounced back and forth between regulating (directly or indirectly) financial firms and then working for them.
States to face tighter finances. States may have to make additional spending cuts over the next couple of years or else face the possibility of deteriorating financial health as tax revenues recover at a slow pace and support from the federal government dwindles. A new report from the National Governors Association and the National Association of State Budget Officers warned of “extremely tight fiscal conditions for states,” and at least 23 states are already anticipating budget deficits totaling $40.5B in 2012.
Here’s the National Association of State Budget Officers report: