Geithner, who technically oversees the IRS, is the biggest tax cheat ever to hold the position of Secretary of the Treasury. Congress saw fit to give him a pass. Amazing.

Wo0t! Hang ‘im high, Neil.

I’ll bet Geithner doesn’t have his usual superior smirk this morning. He must go now.

why the comment that cuomo really needs obama’s support? polling has him beating david patterson and named republicans by considerable margins — and obama doesn’t factor in it at all.

Well, it’s good that SOMEONE is looking into it, but Barofsky can only charge under Fed/SEC codes, whereas Cuomo could compel under the much toothier Martin Act that you brought up yesterday Cynthia.

Timmy needs to And if Obama keeps throwing us under the bus, no dem will need him to run for office. Maybe that’s what he wants- not accountable to anyone.

Can’t wait for Barney’s hearing on this; he set it up perfectly this morning when he said he “supports Geithner.” This should be very interesting.

With Obama’s sinking poll numbers his support is questionable for a Democrat.

Geithner’s gotta go.

Probably could help with fundraising. Could certainly hurt if he were PO’d.

Could be wrong but I think Barofsky lacks subpoena power and also can’t actually bring charges, so the depth of his investigation could be limited and the results ignored by DOJ, etc. However, if Barney Frank decides that his own political life depends on being seen as anti-banker, he might use his committee power to get more into the public record and force action. (Barney would love to avoid doing this, but might be forced to under the theory, “Better that he walks the plank than I do”.

What are the numbers?

When the trial starts I’m purchasing knitting needles.

I’m sure Gonzalez, I mean Holder, will uphold the law.

Thanks for this update. I was hoping to read something fro you on this. You are my “go to” resource.

“It helps that Barofsky has the investigative chops to do a good job at this.” Thank you.

Is there a hint of accountability and truthiness here? Can’t wait. There must be some heroes around.

Or another crumb we have come to satisfied with.

LOL madame dufarge. we definately need a scaffold. Unfortunately we dont have a robspierre yet.

Think about this – we have had a recent US Treasury Secretary who had committed fraud of epic scale, selling fraudulently rated securities and geting increasingly wealthy in the process. A common criminal as US Treasury Secretary. Think about it.

Isn’t it shameful that both the state & federal prosecutorial arms are “holding off” because of political considerations? If it were a Republican who’d committed these crimes, Cuomo and Holder would be all over him/her. Well, maybe. . .

But to have Cuomo and Holder hesitating because of “how it would affect the Obama administration” is no better than Bush. Looks like the Republicans will get all the glory — and will deservedly garner populist outrage — for pursuing this.

Cynthia, thanks for your wonderful work on this story. It’s amazing how little the other “media” are doing on it. This type of criminal activity should be front page news, not something riddled with hedging [to pardon the pun] language [see WaPoo and NYT].

In addition to that time-line, keep an eye out for job openings on the “investigative team.” There are a lot of folks around here who could do a REALLY good job!!

Just read on TPM that Elijah Cummings and another Rep (a GOPer) are both calling for hearings by their committees, so even if Barney would like to sugar-coat it, the truth might edge it’s way out into public view.

it is an open secret that Obama does not want Patterson to run and there have been rumors that the WH has actually telephoned Patterson to urge him to step down to avoid a bruisng Dem primary.

Cuomo would not want to upset that applecart. Also, should the Dem actually field a formidable candidate, Cuomo will need Obama’s star power tohelp him fundraise.

Another L-R coalition. Happening more frequently these days.

Whe you bring a case in federal court, you can also bring related state law claims. They are called “pendant claims”. I had a memeory aide that I used in law school for it since for jurisdictional purposes they hang like a pendant from the necklace of the federal case

Geithner and Paulson should be prosecuted to the full extent of the law under whatever statutes apply. He should be afforded no consideration whatsoever.

This guy is so thoroughly compromised with Wall street that only with the current makeup of the Senate could someone like this have been considered to be the “indispensible man for the job” at Treasury.

We should not be under any illusion that finding him guilty of charges under the TARP statutes will lead to further and more severe criminal prosecution as nobody in the administration or Congress stands to gain by his conviction of any crimes. He is after all the man they chose for the job knowing full well what he had done and intended to do for the
big Banks.

The public on the other hand will rightfully be clamoring for his head and would like nothing better than to have the Obama administration be seen for the Wall Street subservient colluder that it is.

Highlighting this sort of conspiring between the WH, Congress and the Big Banks at the expense of the public could not have come at a better time when the need for reform of the fincnial sector is at hand before the Congress.

Oh, but there’s that mighty OFA organization and “ground team.” I’m sure that’s what Cuomo doesn’t want to risk alienating. /s

I agree with you: I can’t see that an Obama “endorsement” is worth much, and I also don’t see the troops [esp. labor, after they get kicked in the teeth on Card Check, and with "taxes on Cadillac health plans" a recent, live memory] being fired up to respond to OFA’s urgings. Cuomo might be better off to run as an “anti-Obama Democrat” — i.e., a “real” Democrat.

The SIGTARP’s authority to carry out its duties can be found in Section 6 of the Inspector General Act of 1978, which includes the power to issue subpoenas.

From his website.

I’m not sure if SIGTARP can indict and prosecute ontheir own, but if he refrred a case for prosecution AND issuesd a report to go with it, it would be hard for the USAO SDNY to avoid doingtheir job.

awe shucks (stubs toe in sand)

Really, thank you for such a lovely compliment

But to have Cuomo and Holder hesitating because of “how it would affect the Obama administration” is no better than Bush. Looks like the Republicans will get all the glory — and will deservedly garner populist outrage — for pursuing this.

In fairness, I don’t “know” they are holding off. That’s just a surmise based on–lots of inaction. Really, it was more of analysis of reasons they might have to hold off.

My point was that Barofsky does not have those kinds of conflicts.

don’t know if this is mentioned or eluded to but if not you’re gonna love this cynthia

Geithner’s Fed tried to keep sweet deal for banks a secret: Issa

The controversy surrounding Treasury Secretary Tim Geithner’s role in the 2008 Wall Street bailouts was ramped up Thursday with the revelation of emails that show the New York Federal Reserve — then run by Geithner — pressured insurance giant AIG to withhold information about payments the company made to its creditors.

obama is a one term president and the democrats need to start treating him like that, the progressives need to put their foot down and the investigators need to have at this worthless, corrupt, corporate, trickled down economics administration

from my link;

AIG has received $183 billion in taxpayer relief. The news that the New York Fed attempted to keep from the public how that money was spent will likely increase political opposition to Geithner’s appointment as Treasury Secretary.

EVERYONE told obama he CAN NOT simply give bailout money to the banks, the very institutions that demonstrated they had no clue, no compass and no care what happened to this economy

the president was TOLD he needed to make funds available for loans, NOT give untethered access for whatever these sociopathic banksters wanted to do

but let’s look at that;

the president’splan was to give money at the top in the hope that MORE money then what was given would somehow make it back into the economy in some form of loan

IS HE OUT OF HIS MIND?

or is he simply corrupt, trying to steal more, give it to the very people who stole it in the first place

or is he actually as DUMB as someone who believes in trickle down economics?

which is it, any combination or all of the above?

Cuomo’s not going to win election by promising to eviserate NY’s tax base, wall street. He’ll quietly ignore this.

Who’s Marat? Need a Marat or a Paine to whip up the public.

Thanks Cynthia!!!!! Another great post with excellent, clear points.

Jessica Yellin reported on CNN last night that *someone* did something bad but you see it was not Geithner because he was not in charge of the bailouts then. Getting it just a bit wrong … but they are interested: that is good news.

CNN is promoting a special hour (next week?) on Goldman-Sachs. They are calling it MASTERS OF THE UNIVERSE. I kid you all not.

If your senator voted for TARP, please help him/her retire to private life.

If they voted “yea” to confirm Geithner, please do not re-elect them.

If they voted for both TARP and Geithner, please actively campaign against them.

And would not Geithner have been operating under the influence (instructions?) of Paulson at the time this happened? To cover ugly tracks??? As defined by Paulson?

That timeline sounds like an *excellent* idea, Cynthia!!

There’s Rahm, trying to micro-manage national races with his own preferred candidates. Contrary to what his neat little mind would like, we need bruising primaries. Voters need to see what these people are made of before they give them public employment jobs with a 95% retention rate.

Cool!

Primary their asses! Every last one *blessed* of them!!!!

Perris,

Dude, chill. It happened in Noveber of 2008.

Obama was not yet President. Geithner was still at NY Fed as a Shrub appointee.

Jane has a new post already in progress: Libby II: FDL Goes to the Prop 8 Trial in San Francisco

This is very good news. If Obama intends to resurrect his presidency, he will immediately fire Geithner, Summers, Orszag, Rahmbo, and a few other of these incompetents and criminals.

cynthia, the democrats could have easily defeated the bill bush/Geithner sent to them, obama had them sign off on it as “head of the democratic party”

I told everyone back then obama is going to be responsible for the bill and cannot duck after it fails, nobody could call it bush’s bill once obama was on board

I said back then the democrats needed to give a token appropriation till the new adminstration took control

but the new administration DID take control, he owns that bill and gets no play otherwise

don’t forget, he is now re-nominating this guy who saw nothing and has done nothing right

no chilling here

and immediatly re-write the health care bill to include a public option or look anything close to his campaign promises?

he’s endorsed the man, now he can’t win, firing him makes him look like he is clueless, keeping him makes it look like he is in the banks’ pocket

I suspect a bit of both

cynthia, the democrats could have easily defeated the bill bush/Geithner sent to them, obama had them sign off on it as “head of the democratic party”

I will go along with you on the second round of TARP financing and on lifting the caps on Fannie and Freddie guaratees (w/o even bothering to go to Congress, no less). But I would not have contrdicted a sitting president if I was president -elect either.

that was just Shrub trying to smear the dirt around.

Supposedly the House banking Committee has agreed to hearing on Tim. I will have a post o that as well. The way barney Frank appears to be setting it up, he may inadvertatntly end up turning Tim into a sticky tar baby.

You are right that there is no “good” way out for Obama here, eitrher way the President is screwed

But I would not have contrdicted a sitting president if I was president -elect either

that would depend on what the president was trying to do

in this case it was the biggest bailout in history, with no strings attached

obama could have kept his hands clean and stayed away from it, he could have said “congress has their finger on the economy, if bush’s plan has merrit congress will approve it”

instead he got himself full of the mud from that bill

he owns it

This is exactly why every state must adopt a provision which allows for the recall of any elected official for due cause. If that provision is not currently available then it must be proposed this coming election cycle as a proposition to be adopted by referendum.

Publicly elected officials must have a credible and constant threat of being removed from office due to acts which go counter to the public’s will. They must be under no illusion that once elected they can vote as they please and on behalf of large private interests at the public’s expense.

The fate of every public official must reside in the public to be used as often and as readily as needed.

Tell the Truth, the whole Truth and nothing but the Truth

simplicity

in this case it was the biggest bailout in history, with no strings attached

Banks were forced to take money and many needed it. There was no asking on the part of the banks.

If gov’t should see the crisis is over and begin to tax the financial industry to recover whatever was lost (plus some interest), then I feel certain there will be no banks wanting that either.

But, gov’t has it’s duty to the nation and the people as well as to corporations to ensure the entire system works well over time. And, it wouldn’t really be working properly if the banks could contrive this kind of blackmail scheme whenever they wanted free money. It has to be considered an emergency loan (a big one).

IMHO, AIG took on the activities formerly associated with BCCI.

“Banks were forced to take money and many needed it. There was no asking on the part of the banks.”

That’s their story, and you can believe it if you choose. I highly doubt it. Note that most of the banks (with exception of the biggest TBTF banks, who got many additional backdoor bailouts in the interim) have not attempted to repay.

More to the point, this only became relevant once the legislation was passed and signed. There was more than enough opportunity to ‘kill the bill’ or at least put some robust rules and oversight in it. (Congress succeeded in killing it the first time, and got a virtual horsehead in their beds in the form of an engineered stock market crash for their efforts.)

Please read up on Willem Buiter’s ‘good bank’ idea, or similar concepts proposed at the time by Janet Tavakoli and others. The ‘TARP’ approach was engineered to be the best possible outcome for the banking cabal as it existed at the time. It was far from being the only approach and was certainly the worst solution in terms of cost effectiveness and long-term economic health and recovery. It was also the most effective way of privatizing the profits and socializing the losses from the mess.

On a different topic, I’ll see everyone’s knitting needles and scaffolds, and raise you some nice heavy tool steel plates, grinding wheels, and hones…

what a joke… ban the federal reserve and fire all of these banking mafia heads. let go back to a monetary system that is backed by something and give congress the right to mint money again. The dollar is one of the prime examples of fiat money… and at this rate wont be worth the paper its printed on.

There’s plenty of evidence available to identify the “invisible hands” of the “free” market. Let’s help SIG Barofsky out, and have some fun with it.

Let’s assume, for the sake of sport, that John Perkins and Russ Baker and so many others are right: state-sponsored economic hit jobs have created the god-forsaken financial Waste Land we find ourselves in right now. Let’s play tag with the EHMs.

Wouldn’t it be nice if Treasury’s EHMs had to wear uniforms like DoD’s actual hit men do? Who are they, and what are they up to right freakin’ now? I suggest we tag stories about them with EHM, the better to follow their tracks, just like wildlife biologists would do with any other large predator in a suburban setting.

I’m sick of getting jacked by Robert Rubin’s gang of psycho EHMs under the color of law.

As many may be aware, these tools (the internet, blogs, keyboards, words, serial thought) amplify our analytic powers at the expense of our synthetic powers.

The critical difference, of course, is the same as that between dividing and summing it all up. Analysis takes things apart.

Synthesis re-members what analysis has dissected, often to death. Like Marcy Wheeler is admirably doing, elucidating neo-feudalism. We can turn some of our awesome open source attention to adding it up and suggesting which way forward.

Tagging EHMs as such is just one suggestion. I’m open to others.

Someone needs to pass this on to the MSM. Their lack of reporting on this scandal is infuriating.

Spitzer will be talking to Ed Schultz,on MSNBC, about this situation ,this PM.