Wednesday, January 27, 2010

Geithner should be fired, investigated. Goldman should be closed, immediately!

Information from the investigation being conducted by the House Oversight and Government Reform Committee reveals that:

The Federal Reserve Bank of New York, then led by now-Treasury Secretary Tim Geithner, purchased a slew of souring assets from the world's biggest banks for 100 cents on the dollar in November 2008. A scathing report by a government watchdog held Geithner responsible for the overpayments.


"The way the AIG bailout was engineered was to specifically benefit Goldman Sachs and its trading partners," said Janet Tavakoli, a Chicago-based derivatives expert and founder of Tavakoli Structured Finance..."

"The $182 billion bailout overall kept AIG alive, and its trading partners, including Goldman Sachs, benefited from the funds made available to the securities lending transactions and other subsequent trading transactions."

We need to put an end to this crony capitalism. Wall Street is corrupt and a parasite on the nation's economy!


Mike Sandifer said...

Mike, I agree with most of your posts, including this one. Things like this will obviously only get worse with the recent Supreme Court ruling erasing limits on corporate and union campaign donations.

I hope reports about Geithner being on the way out are true and he can take Summers and Rubin people with him. Let Romer be the Treasury Secretary or take Summers' job.

At the same time, we need a new Fed chief. Bernanke doesn't seem to understand that nominal GDP has to stay at trend. Is he fooled by the low interest rates? Is he just too timid? Who knows, but he must go, unless the recent announcement of the shift to adjustments of reserve ratios is coupled with more monetary stimulus. And stop paying interest on excess deposits!

If Bernanke doesn't go, then the new Treasury Secretary should threaten to devalue independently and then maybe the Fed will wake up.

Enough is enough and it's unfortunate that Obama and the Dems have to be staring at a failed presidency and the losses of most of their margins in both chambers to start wanting to create more jobs.

mike norman said...

Yes, Bernanke should go.