Scathing Report By Gov. Watchdog Singles Out Geithner For Bungling The Bailout

[Me.]

HOW CAN GEITHNER SURVIVE THIS?
Scathing Report Singles Out Treasury Chief For Bungled AIG Bailout

Geithner Singled Out In TARP Watchdog Neil Barofsky's Scathing Report On AIG Bailout

“A brutal report issued Monday by a government watchdog holds Timothy Geithner -- then the head of the Federal Reserve Bank of New York and now the nation's Treasury Secretary -- responsible for overpayments that put billions of extra tax dollars in the coffers of major Wall Street firms, most notably Goldman Sachs.

The authoritative new narrative describes how, while bailing out insurance giant AIG last fall, a team led by Geithner failed nearly every step of the way.

Instead of bargaining with AIG's numerous counterparties to resolve its billions of dollars in souring derivatives contracts, Geithner's team ended up paying top dollar for toxic assets -- "an amount far above their market value at the time," the report notes.

"There is no question that the effect of FRBNY's decisions -- indeed, the very design of the federal assistance to AIG -- was that tens of billions of dollars of Government money was funneled inexorably and directly to AIG's counterparties," the Office of the Special Inspector General for the Troubled Asset Relief Program said.”…cont…

http://www.huffingtonpost.com/2009/11/16/aig-bailout-government-ov_n_359919.html

[francolettieri]

1. Tim Geithner resembles actor Peter MacNicol

Does anyone else notice the slight resemblence Geithner has to that actor from Ghostbusters 2 and the Ally McBeal series?? Sorry about this reply being somewhat off topic :)

[Me.]

2. For Some Reason

He makes me think of Uriah Heep

[tblue37]

10. He is now a regular on _Numbers_ (McNichol, I mean).

[Nothing Without Hope]

3. He didn't "bungle" it - he belongs to Goldman-Sachs.

His priorities have always been clear.

[sendero]

9. Exactly..

... I'm sick of these ridiculous mischaracterizations. He knew EXACTLY what he was doing, spending OUR money to bail out Goldman Sachs.

The fact that Obama put up with this, much less the rest of America, is astounding.

[HamdenRice]

4. Geithner is actually worse than Paulson, if you can wrap your mind around that

Even worse than AIG, Geithner's totally useless and unnecessary "money drop" on Wall Street investment banks has begun.

Although the crisis is over and was ended with the spending of only 2/3 of authorized TARP funds in TARP I, Geithner is launching an asset purchase program with the rest of TARP money that is paying top dollar for non-performing assets.

If there's one thing we could all agree on, both pro-TARP and anti-TARP factions here, it would be to stop Geithner from going forward with TARP II.

It's not necessary, it's a waste of money, it doesn't have the protections that Barney Frank built into TARP I, the unsung hero of the effort to prevent a complete collapse, and it's the closest we've come to a free money gift/helicopter money drop on Wall Street of anything that's happened in the various bailouts.

[Me.]

5. He's Testifying This Afternoon

Let's see if they hold his feet to the fire

[bvar22]

6. "Heck of a job, Timmie"

Obama said Geithner has been making “all the right moves” in dealing with the financial crisis and the situation surrounding insurer AIG.

President Barack Obama said he has “complete confidence” in Treasury Secretary Timothy Geithner


Heck of a job, Timmie!

:shrug:



(Screen Capped from the DLC Website)

[Me.]

7. How Long Before They Have To Dump Both Him & Summers?

[bvar22]

8. Geithner and Summers are doing exactly what their employers...

...are paying them to do.

[flyarm]

11. +10,000 BILLION!!!!!!!!!!