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Susman, 71, a vice-president of Citigroup until he retired in February, has long been a backer of the Democrats, nicknamed the Vacuum Cleaner by the Chicago Tribune for his ability to hoover up campaign funding. "I don't think anyone enjoys raising money, but for some reason I seem to have a knack," he told the paper. Susman, who lives in an expensive neighbourhood of Chicago overlooking Lake Michigan, raised at least $500,000 (£320,000) for Obama's campaign and a further $300,000 for his inauguration.

He is so much a part of Obama's inner circle that he was invited to an exclusive party on the Sunday before the inauguration. Other guests included Rahm Emanuel, Obama's chief of staf...

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Susman, 71, a vice-president of Citigroup until he retired in February, has long been a backer of the Democrats, nicknamed the Vacuum Cleaner by the Chicago Tribune for his ability to hoover up campaign funding. "I don't think anyone enjoys raising money, but for some reason I seem to have a knack," he told the paper. Susman, who lives in an expensive neighbourhood of Chicago overlooking Lake Michigan, raised at least $500,000 (£320,000) for Obama's campaign and a further $300,000 for his inauguration.

He is so much a part of Obama's inner circle that he was invited to an exclusive party on the Sunday before the inauguration. Other guests included Rahm Emanuel, Obama's chief of staff, who typifies the sharp-suited, foul-mouthed approach of those brought up on Chicago politics.

London is not the only posting being used to reward political supporters. Other positions in Europe are expected to be filled on the basis of patronage. Dan Rooney, owner of the Pittsburgh Steelers football team, who campaigned for Obama, is to be the ambassador to Dublin.

The appointments will disappoint former US career diplomats who have been pressing Obama to end the practice, especially since he promised to offer more of the top jobs to diplomats. In the Washington Post in December, a retired diplomat with 30 years' service, Morton Abramowitz, called on Obama to "declare that he will not appoint ambassadors who have secured their posts through financial contributions and who have little background to merit any such appointment".