Monday, July 30, 2012

Taibbi on Geitner, LIBOR & Romney

Matt Taibbi was interviewed by Eliot Spizter on the latter's Current TV show. It seems Geitner's claim that he tried to mitigate LIBOR manipulation in 2008 when he was the Chairman of the NY Fed is pure bunk. Spitzer quotes a banker that said this has been going on for over 20 years and everyone knew it. The Fed Reserve was notified of this in 1998. Taibbi confirmed this from his sources and finds Geitner's protestations disingenuous. He was also dumbfounded by Geitner's Congressional testimony as to why he didn't inform Congress of the criminal activity: It was in the press and not a federal regulator's responsibility! Instead of protecting the public he defends the criminals. Astounding.

And Congressional Democrats embraced him while Republicans questioned him on his lack of regulatory responsibility. Both Spitzer and Taibbi assume it's political posturing to protect Obama, for to bring down Geitner now might blow the President's reelection chances. Choosing Geitner was one of Obama's biggest mistakes, since he also failed to criminally prosecute anyone in the bailout fiasco. They just have to live with him, at least until reelection.

And to where is Romney turning for money? LIBOR-plagued banks, which gives us a really good indication of where his financial policy is going should he ever get elected. In that disastrous event it seems Geitner would do just fine as his Treasury Secretary.

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