More Global Insider Plotting
Tuesday afternoon, Secretary Geithner, who is back in Washington D.C. after the G-20 meetings in London, will meet with the Crown Prince of Abu Dhabi, Sheikh Mohamed bin Zayed Al Nahyan.
Tuesday afternoon, Secretary Geithner, who is back in Washington D.C. after the G-20 meetings in London, will meet with the Crown Prince of Abu Dhabi, Sheikh Mohamed bin Zayed Al Nahyan.
Power house lawyer, Sullivan & Cromwell's H. Rodgin Cohen, has withdrawn his name from consideration as a candidate for a Treasury position, George Stephanopoulos is reporting.
As Bill Anderson points out, Robert Higgs in 1997 wrote one of the best and most important papers on the Great Depression called "Regime Uncertainty." It explained one of the reasons that long-term private investment stayed low throughout the 1930's: Because of uncertainty, created by government, businessmen did not make long-term investments for fear of changes in rules and regulations that might take place that would damage their investments.
Just days before Treasury Secretary Timothy F. Geithner was scheduled to lay out his much-anticipated plan to deal with the toxic assets imperiling the financial system, he and his team made a sudden about-face.Is Geithner really this clueless? He changed his entire rescue plan for an on the edge banking sector just days before he was to outline his plan to the country, and is now using this fact, which paints him as totally clueless, for justification for his clueless press conference. Is it any wonder the market was down by 4.0% today? Folks, this is as clear a case of regime uncertainty as you are ever going to get. Nobody has read the playbook because there isn't one. How can anyone invest in the banking sector under these clueless conditions?
According to several sources involved in the deliberations, Geithner had come to the conclusion that the strategies he and his team had spent weeks working on were too expensive, too complex and too risky for taxpayers... There was one problem: They didn't have enough time to work out many details or consult with others before the plan was supposed to be unveiled.
The sharp course change was one of the key reasons why Geithner's plan -- his first major policy initiative as Treasury secretary -- landed with such a thud last Tuesday
I'd like to see some inside reporting on what was behind Obama's decision to ditch the Car Czar concept and, to instead, put Tim Geithner and Larry Summers in charge of auto industry monkey business. From a distance it looks like it is simply a consolidation of a bit more power in the hands of the Geithner-Summers wing of the White House.
Larry Summers, director of the White House’s National Economic Council, said in an interveiw on Bloomberg Television’s “Political Capital with Al Hunt,” scheduled to air this weekend that “There have been many expressions of interest in providing that private capital.”
...that Treasury Secretary Geithner is not the sharpest tack in the room?--- when he said:
Tim is a good guy, but he’s not a thinker. He’s the status quo.After Geithner's abysmal performance outlining his bailout "plan", we all know this today. But Spitzer commented about Geithner in December.
Morgan Reynolds, who served as chief economist for the US Department of Labor during 2001–2, George W. Bush's first term, has done a little fact checking on the new Treasury Secretary:
Who is Geithner? He is a creature of the eastern banking establishment and ruling class through and through. His résumé nicely matches his actions in handing out government money and guarantees to the "right people." Geithner’s father Peter is director of the Asia program at the Ford Foundation, a New World Order operation. Peter Geithner oversaw the "microfinance" programs developed in Indonesia by Ann Dunham-Soetoro, Barack Obama’s mother. Geithner’s maternal grandfather, Charles F. Moore, was an adviser to President Eisenhower and vice president of Ford Motor Company, according to Wikipedia. Geithner’s wife Carole Marie, like Geithner a 1983 graduate of Dartmouth College (Ivy League), is daughter of Mr. and Mrs. Albert Sonnenfeld of Princeton, N.J., a professor of French and comparative literature at Princeton University (Ivy League) for 27 years.Did you catch this:"Peter Geithner [Timothy's father] oversaw the 'microfinance' programs developed in Indonesia by Ann Dunham-Soetoro, Barack Obama’s mother" ?
After Timothy Geithner graduated from Dartmouth he picked up an M.A. at Johns Hopkins in something called "international economics" and East Asian studies. That is the extent of Geithner’s formal training in economics, as far as I can tell. Then he worked for Kissinger and Associates for three years, a Rockefeller satrapy, before a series of government appointments, mostly at Treasury where he was Under Secretary for International Affairs under Robert Rubin of Goldman Sachs and Rockefeller’s notorious Council on Foreign Relations (CFR) and then Lawrence Summers of Harvard University (Ivy League), World Bank and CFR. Summers, of course, is currently Obama’s head of the National Economic Council. Want a solution for the financial and economic woes? Why, hire the same experts who caused the problem(s).
Geithner departed Treasury to join the International Monetary Fund and CFR in 2001–2. In October 2003 he was appointed president of the New York Fed where he subsequently arranged rescues of Bear Stearns, AIG and other well-connected,world-class losers, all in the best interest of the American people, of course.
One side note. Geithner graduated from the International School of Bangkok, Thailand. His father appears to be a possible CIA agent...It makes you wonder how long "they" have been grooming Obama as the "agent of Change" president.
A few words come to mind when trying to understand the Bailout Plan announced by Treasury Secretary Geithner today: incomplete, clueless, odd, potentially devious, lacking in details.
First, we're going to require banking institutions to go through a carefully designed comprehensive stress test, to use the medical term. We want their balance sheets cleaner, and stronger. And we are going to help this process by providing a new program of capital support for those institutions which need it.Here's the problem with this. Wall Street and investors see the problem as banks holding bad paper. The banks know what the bad paper is and they want someone to take it off their hands. A stress test sounds too much like politics still trying to kill off some players. Who and how at this point is unknown.
...alongside this new Financial Stability Trust, together with the Fed, the FDIC, and the private sector, we will establish a Public-Private Investment Fund. This program will provide government capital and government financing to help leverage private capital to help get private markets working again. This fund will be targeted to the legacy loans and assets that are now burdening many financial institutions.
By providing the financing the private markets cannot now provide, this will help start a market for the real estate related assets that are at the center of this crisis. Our objective is to use private capital and private asset managers to help provide a market mechanism for valuing the assets.
We are exploring a range of different structures for this program, and will seek input from market participants and the public as we design it. We believe this program should ultimately provide up to one trillion in financing capacity, but we plan to start it on a scale of $500 billion, and expand it based on what works.
All Wall Street hear's from Geithner here is Federal Reserve, when the Fed is involved you are talking major inflation creation, and for what? Student loans? Auto loans? Let people drive their cars a year or two longer than risk the chance of hyper-inflation.
...working jointly with the Federal Reserve, we are prepared to commit up to a trillion dollars to support a Consumer and Business Lending Initiative. This initiative will kickstart the secondary lending markets, to bring down borrowing costs, and to help get credit flowing again.
In our financial system, 40 percent of consumer lending has historically been available because people buy loans, put them together and sell them. Because this vital source of lending has frozen up, no financial recovery plan will be successful unless it helps restart securitization markets for sound loans made to consumers and businesses – large and small.
This lending program will be built on the Federal Reserve's Term Asset Backed Securities Loan Facility, announced last November, with capital from the Treasury and financing from the Federal Reserve.
We have agreed to expand this program to target the markets for small business lending, student loans, consumer and auto finance, and commercial mortgages.
Treasury Secretary Timothy Geithner today delivered an outline of the latest version of Trillion Dollar Bailout. The meat of his remarks is below. His entire speech is here.
...over his tax problems. If his confirmation hearings came after those of Tom Daschle and Nancy Killefer, he would not be Treasury Secretary today.
The Russian's want to ditch the dollar as the world's reserve. On Wednesday in Davos, Prime Minister Vladimir Putin, during a speech, called for efforts to "facilitate the emergence of several reserve currencies."
Well, somebody is awake in the Senate.
World reaction is starting to pour in regarding new Treasury Secretary Timothy Geithner's comments last week during his confirmation hearing that “Obama -- backed by the conclusions of a broad range of economists -- believes that China is manipulating its currency. The question is how and when to broach the subject in order to do more good than harm."
Given the collapse the dollar is likely to experience, talk like this is the equivalent of the captain of the Titanic bitching about a paint job he once saw on a fishing trawler in the South Pacific.Economists and policy makers are meeting this week in Davos, Switzerland for the annual World Economic Forum, and teeing off on Geithner seemed to be the sport, on the first day of the meetings.
Wall Street is a very tough place, if you don't know what is going on, your money will be taken from you. I can't think of a more outrageous rape of the taxpayer, ever, than the TARP program run by GW Treasury Secretary Henry Paulson. It should be noted that Paulson's lieutenant in the rape of the taxpayer was Timothy Geithenr, who came up short paying his own personal taxes, but managed to help dole out $350 billion in taxpayer money through TARP and is likely to be confirmed by the Senate today as the new Treasury Secretary.
Has Bank of America Chairman Ken Lewis come to his senses? Has the ether Merrill Chairman John Thain slipped Lewis during his sales pitch to get Lewis to buy Merrill, at a premium to the market price in the middle of a crisis, worn off?Closing date on the B of A takeover: January 1, 2009.
The toasting is over. The Senate Finance Committee had its little fun, but ultimately they will allow the man who played a major role in TARP phase 1, and passed out money as though it was a three dimensional surreal bingo game, the keys to, get this, the entire Treasury.
I wonder if anyone will ask Timothy Geithner at his contnued confirmation hearing today, if he was the official that was approached by Barney Frank, when Frank sought special consideration for OneUnted Bank, or if Geithner had any role at all in the approval of money for the bank.
A Senate friend, who is closely observing the confirmation hearing of Timothy Geithner, tells me that Geithner is likely to be confirmed Thursday.
Sen. Jim Bunning, the longtime Fed foe, steps onto the pitcher’s mound and starts firing. He says he had “serious reservations” even before the tax issues arose. Bunning says Geithner was “involved in just about every flawed bailout action of the previous administration.”
On the tax issues, “Mr. Geithner does not provide a satisfactory explanation for the problem, certainly not one significant for a high-ranking public official, who the American people demand and deserve to hold to a higher standard.” He says the committee has known about the tax issue since December 5 but didn’t tell members until a week ago. He also says the hearing has been rushed, and that the committee never interviewed the IRS personnel involved in the tax case. Geithner’s failure to pay all the taxes until being nominated “is hard to explain to my constituents who pay these taxes on a regular basis.”
There was no indication of a question for Geithner. But Bunning’s time was up anyway.
President Obama is pulling out the heavy guns for today's confirmation hearing of Timothy Geithner. Paul Volcker was called upon to introduce Geithner.
Treasury Secretary nominee Timothy Geithner, who in the past has been slow sending the Treasury tax money owed (It slipped his mind, or something) is now a reported punk enforcer for the Treasury/Goldman Sachs Family. Chris Whalen of Institutional Risk Analytics reports (Via Henry Blodgett)
To me, the apparent conflict of interest between Geithner, Hank Paulson, Robert Rubin and other principals of Goldman Sachs is Topic A for the Senate confirmation hearing. In particular, I'd like to see Paulson finally respond to the numerous FOIA requests from news organization for his telephone and email logs.
In particular, the Senate needs to focus on the reported activities of Geithner on behalf of Goldman Sachs to stop members of the media from reporting on Geithner's apparent rescue of GS by bailing our AIG. I understand that Geithner threatened a member of the NY press corps because of that journalist's reporting on the AIG rescue. I have promised said journalist not to reveal the writer's name for now, but I hope to see that writer in touch with members of the Senate minority early next week.
As the tension builds, the Senate Finance Committee has for the second timed postponed Timothy Geithner's confirmation hearing. A tentative Friday date has now been moved to next Wednesday.
During the vetting of Mr. Geithner late last year, the Obama transition team discovered the nominee had failed to pay the same taxes for 2001 and 2002. "Upon learning of this error on Nov. 21, 2008, Mr. Geithner immediately submitted payment for tax that would have been due in those years, plus interest," a transition aide said. The sum totaled $25,970.Geithner prepared his own tax returns in four of the years in question. Economist Magazine tells us he is, "a quick learner: within a year of joining the New York Fed he could debate the intricacies of monetary policy with academic experts." The current revelations suggests he is either not a quick learner, or a tax cheat---or both.
The Obama team said Mr. Geithner's taxes have been paid in full, and that he didn't intend to avoid payment, but made a mistake common for employees of international institutions. That characterization was contested by Senate Finance Republicans, who produced IMF documents showing that employees are repeatedly told they are responsible for paying their payroll taxes...
Other tax issues also surfaced during the vetting, including the fact Mr. Geithner used his child's time at overnight camps in 2001, 2004 and 2005 to calculate dependent-care tax deductions. Sleepaway camps don't qualify.
Amended tax returns that Mr. Geithner filed recently include $4,334 in additional taxes, and $1,232 in interest for infractions, such as an early-withdrawal penalty from a retirement plan, an improper small-business deduction, a charitable-contribution deduction for ineligible items, and the expensing of utility costs that went for personal use
When your political career is shot candor becomes easier.
I asked Eliot Spitzer what he made of incoming Treasury Secretary Tim Geithner, and sure enough he gave a reply markedly lacking in discretion: “Tim is a good guy, but he’s not a thinker. He’s the status quo."At the party, he also spoke to Henry Blodget:
Add the name Eliot Spitzer to the list of prominent people allegedly ripped off by Wall Street trader Bernard L. Madoff. Yesterday at Slate's holiday party Spitzer, who is writing a column for the online publication, confirmed that his family's firm had investments with a Madoff subsidiary.FT's John Gapper asked him about his becoming a wordsmith:
The former governor said that he never met Madoff and wasn't into "the Palm Beach scene," which he described as stuffier than he prefers, but did confirm that his family real estate firm lost money. He shrugged his shoulders in a "what can you do" way, and seemed in good spirits as he talked and joked with the crowd of mostly journalists.
At one point, On the Media's Brooke Gladstone, who like Spitzer is Jewish, joked that "Bernie Madoff was worse for the Jews than anyone since David Berkowitz" and Spitzer replied, "Well, I was New York's second Jewish governor and look what I did."
I went over afterwards to ask him how he was enjoying life as a columnist. “It sucks,” he said with a grin. “I used to be governor of New York”.
Goldman Sachs yesterday became the first US bank to issue debt backed by the Federal Deposit Insurance Corp under yet another new Paulson/Geithner government plan to shovel money to the politically connected. Goldman raised $5 billion.
...says Carlyle Group's Randal Quarles, who will probably soon be asking Geithner for money, when Carlyle starts its bank buying binge.
President-elect Barack Obama officially announced key members of his economic team today. The new appointees—and short profiles—are listed here:
Doesn't understand basic economics, see here and here.
Summers, who may well end up being Obama's closest economic adviser, has been especially public in calling for a big stimulus package. Many saw his touch in Obama's call this weekend for the stimulus plan to create or save 2.5 million jobs.
Jackie Calmes at IHT fills in more pieces to the puzzle:
It is testament to former Treasury Secretary Robert Rubin's star power among many Democrats that as President-elect Barack Obama fills out his economic team, a virtual Rubin constellation is taking shape.
The president-elect's choices for his top economic advisers — Timothy Geithner as Treasury secretary, Lawrence Summers as senior White House economics adviser and Peter Orszag as budget director — are past protégés of Rubin, who held two of those jobs under President Bill Clinton. Even the headhunters for Obama have Rubin ties: Michael Froman, Rubin's chief of staff in the Treasury Department who followed him to Citigroup, and James Rubin, Rubin's son.
Amazing how much damage the lame ducks can do in the time remaining,
So says WSJ:
The new economic team emerges from the Democratic Party's moderate flank, with Mr. Rubin as the common denominator. Mr. Summers was Mr. Rubin's longtime deputy at Treasury and then succeeded Mr. Rubin as Treasury secretary. Mr. Geithner was a senior aide at Treasury during this period.
Peter Orszag, who will be Mr. Obama's budget director, was the first director of the Hamilton Project, a program co-founded by Mr. Rubin at the Brookings Institution, a think tank...
Barack Obama's choice for Treasury Secretary, Timothy Geithner, should be called the Bailout King. According to NYT:
[H]e was involved in the bailouts of Mexico, Indonesia, Korea, Brazil and Thailand.This is in addition to his recent roles in the bailouts of Bear Stearns and American International Group, and Treasury Secretary Paulson's $700 billion boondoggle.
According to various news sources, Tim Geithner will be nominated as Treasury Secretary by Barack Obama. An official announcement is expected Monday.
As for the TARP bailout story, it is generally believed that Geithner is a strong interventionist. And so we can expect him to move toward raising the second $350 billion tranche of the originally authorized $700 billion package by Congress.
FOR IMMEDIATE RELEASE
In attendance are New York Fed President Timothy Geithner, Mr. Paulson and Securities and Exchange Commission Chairman Christopher Cox. The Wall Street executives included Morgan Stanley Chief Executive John Mack, Merrill Lynch Chief Executive John Thain, J.P. Morgan Chase CEO Jamie Dimon, Goldman Sachs Group CEO Lloyd Blankfein, Citigroup Inc. head Vikram Pandit and representatives from the Royal Bank of Scotland Group PLC and Bank of New York Mellon Corp., among others.