Dark Skies
01-24-2010, 09:32 PM
Geithner, Bernanke Locked in Death Spiral (http://larouchepac.com/node/13240)
January 24, 2010 (LPAC)—The bad news just seems to be getting worse for both Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke. The House Oversight Committee has now received 250,000 pages of documents from the Fed regarding its role in the bailout of AIG. According to the New York Times, which was leaked some of the documents and Congressional committee staff notes, they prove that Geithner was involved, up to his neck, in the decision to pay AIG's trading partners 100 cents on the dollar for their contracts.
The Times reports that Thomas C. Baxter, the chief counsel of the New York Federal Reserve Bank, some at the Fed wanted to discount the contracts, but the banks refused. "We asked for concessions, and they said no," Baxter told Congressional investigators. He also told them that it was Geithner who verbally approved the decision to pay full price to the banks.
Not sure how much longer Geithner can maintain his position. No doubt he'll try to explain things away but I'd be shocked if he still has a job by this time next week. Bernanke can join him but we'll see how far his Wall Street/political buddies are willing to back him in the coming days.
January 24, 2010 (LPAC)—The bad news just seems to be getting worse for both Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke. The House Oversight Committee has now received 250,000 pages of documents from the Fed regarding its role in the bailout of AIG. According to the New York Times, which was leaked some of the documents and Congressional committee staff notes, they prove that Geithner was involved, up to his neck, in the decision to pay AIG's trading partners 100 cents on the dollar for their contracts.
The Times reports that Thomas C. Baxter, the chief counsel of the New York Federal Reserve Bank, some at the Fed wanted to discount the contracts, but the banks refused. "We asked for concessions, and they said no," Baxter told Congressional investigators. He also told them that it was Geithner who verbally approved the decision to pay full price to the banks.
Not sure how much longer Geithner can maintain his position. No doubt he'll try to explain things away but I'd be shocked if he still has a job by this time next week. Bernanke can join him but we'll see how far his Wall Street/political buddies are willing to back him in the coming days.