SpyTalk

Sources familiar with the incident said the arrival of Murphy, his wife and four soccer-uniformed kids on what some said was a Gulfstream V executive jet came just as the German press was describing how top embassy posts in the Obama administration were going almost exclusively to wealthy campaign donors.

The tin-eared arrival did not help improve U.S-German relations, which have reached "a nadir," as one close observer put it, over the war in Afghanistan, the Obama administration's stimulus plan and the president's trip to Russia, which Merkel allegedly thought was a "disaster."

"It pissed off Merkel," said a source with longtime involvement in U.S.-German relations, describing Murphy derisively as a "master of the universe."

Murphy, who headed Goldman Sach's Frankfurt office between 1993 and 1997, was National Finance Chair of the Democratic National Committee from 2006 to 2009.

OpenSecrets.org included Murphy and his wife Tammy on its list of Heavy Hitters, who have contributed at least $50,000 to federal candidates and parties during one or more election cycles while affiliated with Goldman Sachs. The Murphy's total contributions are listed at $1,221,500 with 92% going to Democrats.

Murphy was confirmed by the U.S. Senate as U.S. ambassador to Germany on August 7 and presented his credentials on September 3. He and his family arrived in Berlin on August 21, 2009.

A German embassy spokesman dismissed the report of Merkel's displeasure, saying, "I would be astonished if that were the case."

The State Department did not respond to a request for comment.