January 15, 2009
Geithner and Bailouts
Geithner's tax troubles are well known but less discussed is his role in the bank bailouts. The position of Chairman of the New York Federal Reserve Bank has, since the days of Strong in the 20s, been itself a very powerful position. The NY Fed is the best capitalized of the 12 Federal Reserve Banks and does much of the Fed's bidding. What was his role in the bailout bill, TARP? Did he recommend money to Citigroup and Bank of America? On what grounds? The press coverage out of New York on the appointment is very favorable and this itself should be a warning. The New York financial community is happy with his appointment. Why? Because he is soft on the New York financial community. Congress is barking up the wrong tree on his confirmation. So what else is new?
January 15, 2009 | Permalink
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