Geithner’s emails supoenaed in AIG inquiry

Interesting.

The House Oversight and Government Reform Committee is seeking information on payments made to major global banks including Goldman Sachs, Morgan Stanley, Barclays, Bank of America, Deutsche Bank, and Societe Generale.

Mr Geithner was president of the New York Fed at the time that decisions involving the money from the bail-out of failed insurer American International Group (AIG) were taken.

The panel is seeking emails, phone logs and meeting notes from the New York Federal Reserve and Mr Geithner, among others, on the discussions held ahead of the bail-out decision.

“Questions remain surrounding AIG’s credit default swap counterparties and why these companies received full compensation, when the best they could have hoped for in a bankruptcy proceeding was perhaps 30 or 40 cents on the dollar,” the panel said in a statement.
I hope everything comes back o.k Timmy, otherwise I smell a resignation in the air.

Published in: on January 15, 2010 at 1:24 pm  Leave a Comment  
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Timmy Geithner says: System ‘back from brink’

Timmy testified Thursday that the financial system has “stepped back from the brink,” allowing the government to wind down some programs designed to calm jittery markets. He said we need to go from rescuing the economy to repairing and rebuilding the financial system”

Not that I thrown a life vest or anything but, the first thing I’m doing is sending Merill Lynch this story, because judging by my 401k no one has told them yet.

He said that Treasury will:

•Not need to tap a $750 billion contingency fund budgeted earlier this year on top of last year’s $700 billion bailout fund. (Looks like they will need that money set aside for Health care)

•End a program this month to guarantee money market mutual funds, a program that once covered more than $3 trillion in fund assets. (The need the extra cash to cover the ear marks)

•Scale back to no more than $30 billion from $100 billion the amount that Treasury will ante up as part of a public-private program to buy toxic loans and investments from financial institutions. (Goody, I get to own more crap stuff)

He then goes on to say that the government wouldn’t make the mistake of declaring premature victory and putting “the brakes on too early.” As unemployment is still too high, the economy is weak, lending is still very low except for those fannie and Freddie Guys and businesses are still finding it hard to get credit.

Looks like I wont be sending Merrill Lynch this story after all. So what was the good news Timmy? I seemed to have missed it

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Spend, Spend, Spend. Stimulus still needs to go on.

President Obama has made it clear that the stimulus program should be limited in duration, and that once growth is established it will be necessary to bring deficits down, Geithner said.

The catch?

No specific time for when the United States should begin to shift away from the stimulus, saying only, “when it’s appropriate.”

“Appropriate”?? I guess that means we are screwed on standby

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