Geithner's head about to roll?

30ashopper · 01-07-2010, 12:52 PM

Quote:

The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.

AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.

The New York Fed took over negotiations between AIG and the banks in November 2008 as losses on the swaps, which were contracts tied to subprime home loans, threatened to swamp the insurer weeks after its taxpayer-funded rescue. The regulator decided that Goldman Sachs and more than a dozen banks would be fully repaid for $62.1 billion of the swaps, prompting lawmakers to call the AIG rescue a “backdoor bailout” of financial firms.

Geithnerâ€™s Fed Told AIG to Limit Swaps Disclosure (Update1) - Bloomberg.com

Backroom deals for friends... I don't see how this guy will survive 2010, and he probably shouldn't.

aleonard · 01-07-2010, 01:00 PM

Quote:

Originally Posted by 30ashopper

Geithnerâ€™s Fed Told AIG to Limit Swaps Disclosure (Update1) - Bloomberg.com

Backroom deals for friends... I don't see how this guy will survive 2010, and he probably shouldn't.

It should roll.

RayStar · 01-07-2010, 03:42 PM

I hope the president keeps him. Too many of the Obama administration appointees are being judged by a white glove screening. No adult is an angel. IMO

bdc63 · 01-07-2010, 03:47 PM

First he doesn't pay his taxes, and now he gets caught laundering tax payer money through AIG to Goldman Sachs and tells them not to disclose it.

If that doesn't qualify him for Treasury Secretary, I don't know what would.

Lynnie · 01-07-2010, 04:15 PM

Interesting perspective RayStar. I understand what you are saying, but 100% profit on tax payer money? Goldman Sachs might have underwritten a near demise of themselves as well.

I think Geithner should go.

And, I am about to take a new position, which I have never done before; and, that is to vote against every incumbent for the next six years.

There are people who can't pay their heating bills this month and that is much more important to me than dirty politics, increased spending and a shady cabinet with czars that are appointed by the President and no one has a say.

I'm kinda' done.

bdc63 · 01-07-2010, 04:17 PM

Quote:

Originally Posted by Lynnie

I'm kinda' done.

Me too, Lynnie. Me too.

Andy A. · 01-07-2010, 04:22 PM

Quote:

Originally Posted by Lynnie

Interesting perspective RayStar. I understand what you are saying, but 100% profit on tax payer money? Goldman Sachs might have underwritten a near demise of themselves as well.

I think Geithner should go.

And, I am about to take a new position, which I have never done before; and, that is to vote against every incumbent for the next six years.

There are people who can't pay their heating bills this month and that is much more important to me than dirty politics, increased spending and a shady cabinet with czars that are appointed by the President and no one has a say.

I'm kinda' done.

Count me in and welcome to the "throw the bums out" club. And I am referring to incumbents, not Republicans and Democrats.

Bob · 01-08-2010, 09:57 AM

Henry Paulson's Goldman Sachs Stock and Conflict of Interest May 2, 2009|Posted By Adam Sharp
A look back at Paulson’s conflicted interests

Hank Paulson When Hank Paulson agreed to become Treasury Secretary in May of 2006, he found himself in a bit of a pickle. You see, he owned about $500 million in Goldman Sachs stock, from his days as CEO of the firm. So, to avoid any appearance of a conflict of interest, government rules forced Mr. Paulson to sell all that stock. Phew! Looks like we dodged a bullet there…

Mr. Paulson’s conflict of interest also brought a very unique benefit: He didn’t have to pay any capital gains taxes on the sale of that stock, at all. The Economist estimated his tax savings to be $200m. That’s not bad compensation for less than 3 years of work at a “public service” gig. He also got a nice salary and generous benefits. For more on the intimate relationship between Goldman and Government, see this post.

The ethics rules that forced Paulson to sell his GS shares were designed so that rich executives aren’t dissuaded from entering public service due to tax issues. But they seem to have the opposite effect. It encourages these guys to move to Washington after they’ve made their fortunes. Getting a government job with conflicted interest turns out to be a fantastic tax dodge. Not to mention all the good you can do while in office (for your buddies, high-five!). Sorry, I’ve been watching too much Borat/Ali-G lately.

As most people know, Paulson went on to orchestrate the largest corporate bailout in history. Some banks failed, some will prosper in a thinned field of competitors. One of the major beneficiaries was the firm he formerly headed, Goldman Sachs. They received $10b in direct aid, plus another $12b indirectly, via the AIG bailout. Goldman argues that even if AIG wasn’t bailed out, they would have collected most of their $12b. They may be correct, but I am skeptical. To be clear, I am not accusing Goldman or anyone else of illegal activity or fraud. But things seem very fishy.

Bob · 01-08-2010, 09:58 AM

geithner is nothing compared to the hank the rapist. timmy takes hank's phone calls.

30ashopper · 01-08-2010, 10:58 AM

Quote:

Originally Posted by Bob

geithner is nothing compared to the hank the rapist. timmy takes hank's phone calls.

Your endless defense of Obama's bad decisions via a generic "not as bad as George Bush" comparison are getting old Bob.

Lynnie · 01-08-2010, 11:36 AM

Bad on top of Bad = BAYD.

scooterbug44 · 01-08-2010, 03:34 PM

Quote:

Originally Posted by RayStar

I hope the president keeps him. Too many of the Obama administration appointees are being judged by a white glove screening. No adult is an angel. IMO

I don't think he is being held to an unfair standard - backroom deals with our tax dollars going to fat cats (100 cents on the dollar when market was less than a 1/4 of that) and tax evasion are biggies.

What would be so bad about holding them to a well known legal standard and getting rid of those who don't comply?

I can't think of one negative - lots of HONEST people need jobs these days.