The Bell Tolls For Timmy (a Fed Farewell)

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machinehead's picture
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The Bell Tolls For Timmy (a Fed Farewell)

The bell tolls for thee, Timmy. Read all aboudit:

Jan. 12 (Bloomberg) -- The Federal Reserve Bank of New York will be compelled to hand over documents related to American International Group Inc.’s government bailout after a House oversight committee chairman said he will issue a subpoena.

“To help the committee’s investigation of payments made by AIG to its counterparties, I am issuing a subpoena today to the Federal Reserve Bank of New York,” Edolphus Towns, the New York Democrat who runs the Oversight and Government Reform Committee, said in an e-mailed statement. “This subpoena will provide the committee with documents that will shed light on how and why taxpayer dollars were used for a backdoor bailout.”

Towns’ attempt to force the New York Fed to provide documents comes after the ranking Republican on the committee, Darrell Issa of California, obtained e-mails showing the regulator pushed AIG to withhold information from public filings about payments to banks. The New York Fed in November declined to provide some documents Issa was seeking without a subpoena, Issa said in a letter to Towns today.

Treasury Secretary Timothy Geithner, who was president of the New York Fed when AIG was rescued, had been asked by Towns to testify during hearings scheduled for next week. The New York Fed’s general counsel, Thomas Baxter, said last week that Geithner wasn’t aware of efforts to limit New York-based AIG’s bailout disclosures because he didn’t think the issue merited Geithner’s attention.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a7nN0Ki4q15w&pos=1

Were any of y'all around here in Sep. 2008? I'll bet some of you were. Maybe the stock chart of AIG, linked below, will jog your memory. AIG was in the process of blowing out, which meant defaulting on credit default swaps it had sold to JPMorgan and other gang-banksters. Not only did the Fed bail out AIG on Sep. 16th, it also directed it to buy back the impaired swaps at par -- sweet deal for the banksters!

http://tinyurl.com/ycnaju7

One can easily imagine JP Morgan's ransom note to the New York Fed. Accompanied by a photo of a soulful-eyed dog, the text -- crudely cut and pasted from a newspaper headline -- read: 'sENd US $ oNE TriLLion doLArZ Or w'ELL sHOOt tHIS pUUPy!!!'

We all know that AIG was a criminal enterprise. What was stunning, in the exchange of e-mails cited above, is that AIG's counsel came out looking like the GOOD GUY. He wanted to comply with disclosure rules, since the Sarbanes-Oxley Act imposes criminal penalties on those who don't. By contrast, the Fedster Baxter urged, between the lines, 'We're the big, bad Federal Reserve. We skate around the law all the time -- nobody audits US. Now that you’re under our wing, YOU CAN TOO.'

AIG, to its credit, was having none of this. 'Honor among thieves' doesn't extend to G-men. They've got no soul. So AIG spilled the beans.

Incredibly, though, Treasury Secretary Timothy Geithner -- who was just transitioning from the New York Fed to the Treasury -- claims he knew nothing of his counsel inciting AIG to commit a felony. Do you believe that?

Consider another penny-ante crime: the Watergate break-in. It wasn't even a federal crime, as a Sarbanes-Oxley violation would be. But the planning and direction of it -- and more particularly, the COVER-UP of it -- led to the straight to the White House.

No Fed bureaucrat with a lick of sense would plot a criminal cover-up without direction from the top. Although Baxter and Geithner probably made a verbal 'deniability' pact, my guess is that Baxter ultimately will cast Geithner to the wolves. Or else Timmy himself will have to appear before the committee and plead the Fifth Amendment -- 'I decline to answer, on the grounds that it may incriminate me.'

What a kick it'll be to hear Chairman Towns' understated, portentous dismissal as he gavels the hearing to a close:

'Your comments are duly noted, Mr. Geithner. GOOD-BYE.' *

 

[* hat tip: agitating prop]

 

 

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Re: The Bell Tolls For Timmy (a Fed Farewell)

Machinehead

So who do we get to replace him after he goes to Goldman Sachs?

V

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Re: The Bell Tolls For Timmy (a Fed Farewell)

One good thing, Timmy will be able to belly up for a big bonus from the Federal Reserve without worrying about doing anything unethical if he loses his gig at the treasury.  Despite some crazy days last year, the Fed was able to realize a $52 billion profit (tax free).  This is the biggest profit, buy over a 50% increase, any year since the coup of 1913.  Timmy will get a taste without any ruffling of his conscience.

And what a great job Timmy did at the treasury before he blew it.  His old buddies at the Fed bought 91% of the government's deficit.  What a salesman!  Everyone wins, the government gets to waste more money while the Federal Reserve buys all those T-bills with money they created for free, from nothing.  And, the T-bills go towards the Fed's reserves where banks can create money for their own accounts with it, which can be used to buy investments for free.

     

 

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Re: The Bell Tolls For Timmy (a Fed Farewell)

V wrote:

So who do we get to replace him after he goes to Goldman Sachs?

Since you had to start gossipin 'bout where Timmy may land...

I dunno, the problem with being CEO at Goldman is that Timmy will have to take a pay-cut. 

Larry

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Re: The Bell Tolls For Timmy (a Fed Farewell)

@DrKrbyLuv

Re: Those pics

I had never noticed how much Geithner resembled Hank Paulson when Paulson had hair. Uncanny!

You know how people find Jesus in tree bark and the occasional bowl of soup. Well check this (below) out and tell me I'm not imagining things...

Shit Vision

 

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Re: The Bell Tolls For Timmy (a Fed Farewell)

I'm sure he'll come out unscathed in this.  Fannie and Freddie get a blank check for Christmas, Bernanke is still in power after the BOA-Meryll Lynch fiasco, AIG, Citigroup, and BOA get to run operations with our money; and let's not forget Turbo Tax Timmy got confirmation to head up the Treasury after dodging tax payments.  The bell tolls for Timmy?  Yeah right.  What on earth makes anyone think he'll get more than a public scolding for his part in coercing AIG to keep their finanicial activity a secret?  No one in Washington is going to do jack.  They're going to talk a good game to appease the public and then let Turbo Tax Timmy keep on doing his thing.

I'm sure the general public's eyes will be diverted to would be terrorists while the working class bends over (and pays for it with 25%+ of their pay) for the real terrrorists in Washington.  Go back to sleep, nothing to see here.

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. -Thomas Jefferson

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Re: The Bell Tolls For Timmy (a Fed Farewell)

Re: The devolutionary ape that posts as The Evolutionary Ape:

"I'm sure he'll come out unscathed in this."  Are you his mother? Guilty has had not greater opportunity in history to exemplify itself.

"Fannie and Freddie get a blank check for Christmas..." And the exponential extension of corruption suggest buckshot won't put drainage pores in his chest.

'Bernanke is still in power" because we want to keep the average idiot, AK-47-owning American's eye on the Ben.

"What on earth makes anyone think he'll get more than a public scolding...?" You're not paying attention, are you? We're not talking about "scolding" here, we're defining the reality to be encountered by Geithner and similar criminals, as what  desperate, reality-stricken Americans will offer to people they see as sub-human; think Geithner and flaying of skin...

As for Jefferson's warning: Geithner so far surpasses the concept of sub-human that Jefferson et al had in mind, that we need not concern ourselves with the method of which activist Citizens dispose of his remains; that is to say, there is no heinous reality that he could face that would be sufficient.

 

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Re: The Bell Tolls For Timmy (a Fed Farewell)
Headless wrote:

Re: The devolutionary ape that posts as The Evolutionary Ape:

"I'm sure he'll come out unscathed in this."  Are you his mother? Guilty has had not greater opportunity in history to exemplify itself.

"Fannie and Freddie get a blank check for Christmas..." And the exponential extension of corruption suggest buckshot won't put drainage pores in his chest.

'Bernanke is still in power" because we want to keep the average idiot, AK-47-owning American's eye on the Ben.

"What on earth makes anyone think he'll get more than a public scolding...?" You're not paying attention, are you? We're not talking about "scolding" here, we're defining the reality to be encountered by Geithner and similar criminals, as what  desperate, reality-stricken Americans will offer to people they see as sub-human; think Geithner and flaying of skin...

As for Jefferson's warning: Geithner so far surpasses the concept of sub-human that Jefferson et al had in mind, that we need not concern ourselves with the method of which activist Citizens dispose of his remains; that is to say, there is no heinous reality that he could face that would be sufficient.

 

 

Sure attack me because ranting on an internet forum has done so well to alleviate the current financial crisis and the rest of America's woes.   

The point of my response is that Congress will not do anything to Geithner (as they've shown with the other examples I cited) and until your violent ridden fantasies come to fruition, he'll be the head of the Treasury for a while unless more damaging things are uncovered (which is a good possiblity). 

While I know your shotgun is America's greatest answer to D.C.'s corruption, do you think Congress is going to oust him?  I for one don't think D.C.'s track record points to this happening. That was the point of my response to the original post, which was not a response to your post of Geithner's face in feces and the resemblance of the former and current Treasury's hairline (which I must say was very thought provoking and insightful).  Now if you could slowly back away from the firearms I'd like extend an apology for gettting you all worked up.

Oh, and yes I am his mother.   How ever did you know?    

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Re: The Bell Tolls For Timmy (a Fed Farewell)
The Evolutionary Ape wrote:

I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. -Thomas Jefferson

Hi Ape

I imagine you're probably right about Geithner, but then again, not too many people on this site are what I'd call naive, and I'd say Machinehead is at least as cynical as you are - which is saying something! So, we'll see. But just for the record, that's an oft repeated, but bogus quote from Jefferson, which can only be traced back to the 1930's - which is a bummer -  'cause it's a good one.Frown

Cheers

Greg 

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Re: The Bell Tolls For Timmy (a Fed Farewell)

The plot thickens. From Bloomberg:

Jan. 13 (Bloomberg) -- Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein testified today that he was never asked to accept a discount on investment contracts his firm had with American International Group Inc.

AIG, as part of a bailout orchestrated by the Federal Reserve Bank of New York, paid out 100 cents on the dollar on credit-default swaps purchased by bank counterparties including New York-based Goldman Sachs. The New York Fed said it had to make the payments after banks refused to accept so-called haircuts, according to a November audit from Neil Barofsky, the special inspector of the U.S. Troubled Asset Relief Program.

Lawmakers have called the AIG rescue, which has swelled to $182.3 billion, a “backdoor bailout” of the Wall Street firms that were fully reimbursed for securities trading at less than face value. The New York Fed made “limited efforts” over two days in November 2008 to negotiate discounts on $62.1 billion in protection from AIG clients including Goldman Sachs and Societe Generale SA, Barofsky has said.

“I never got a request myself about taking less, it never came up in any conversation I can recall,” Blankfein said while testifying in Washington at a hearing of the Financial Crisis Inquiry Commission. He said that while an employee said he had received a question on the topic, it “never came up to me.”

http://www.bloomberg.com/apps/news?pid=20601087&sid=ayXyZExmn9sw&pos=1

The Fed claims that banks 'refused to accept haircuts'? Just a minute here. Without the Fed's bailout, those banks would have been hat-in-hand creditors at a bankruptcy hearing. The Fed held all the cards, and gave its crony member banks a corrupt sweetheart deal which cost the taxpayers tens, perhaps hundreds of billions. And now Lloyd Blankfein says the Fed was flat-out lying -- they never even asked for a haircut.

Let's call a spade a spade -- the AIG bailout was a monumental conspiracy against the public interest. It is axiomatic that it was organized AT THE TOP -- not merely by Tim Geithner, but almost surely by Chairman Ben Bernanke as well. And now their 'honour among thieves' code of silence has unraveled. OOPS!

The handwriting is on the wall -- the Federal Reserve is a racketeering operation. Que RICO! This is bigger than Watergate, bigger than Teapot Dome. Appoint a special prosecutor, I say, and start sending the Fedster scamsters to prison. Let Timmy Geithner share a cell with his private-sector counterpart, Bernie Madoff. Money for nothin', lodging for free!

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Re: The Bell Tolls For Timmy (a Fed Farewell)
machinehead wrote:

The Fed claims that banks 'refused to accept haircuts'? Just a minute here. Without the Fed's bailout, those banks would have been hat-in-hand creditors at a bankruptcy hearing. The Fed held all the cards, and gave its crony member banks a corrupt sweetheart deal which cost the taxpayers tens, perhaps hundreds of billions. And now Lloyd Blankfein says the Fed was flat-out lying -- they never even asked for a haircut.

Let's call a spade a spade -- the AIG bailout was a monumental conspiracy against the public interest. It is axiomatic that it was organized AT THE TOP -- not merely by Tim Geithner, but almost surely by Chairman Ben Bernanke as well. And now their 'honour among thieves' code of silence has unraveled. OOPS!

The handwriting is on the wall -- the Federal Reserve is a racketeering operation. Que RICO! This is bigger than Watergate, bigger than Teapot Dome. Appoint a special prosecutor, I say, and start sending the Fedster scamsters to prison. Let Timmy Geithner share a cell with his private-sector counterpart, Bernie Madoff. Money for nothin', lodging for free!

Amen!  That is the best comment I have read in a while!

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Geithner and Bernanke challenged re Constitutional authority

Here is the link to the youtube video:

Notice that they both evade the fact that there is no authorization in the Constitution for the Congress to give the Fed the powers they now have.

In fact there is no authorization in the Constitution for a central bank at all. 

If you watch to the end you will get to hear Barney Frank shut off the questioner, Michelle Bachmann, Congresswoman from Minnesota.

There is a growing awareness that the Congress and the President have been ignoring the limits the Founders built into the newly created central government in the Constitution. Is it conceivable that a return to adherence to the Constitution and the sound money, gold and silver coin as the only legal tender would help to get us out of this quicksandish quagmire?

www.campaignforliberty.com 

www.atlassociety.com www.aynrand.org www.fff.org www.mises.org www.cafehayek.com www.lfb.org

 

 

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Re: The Bell Tolls For Timmy (a Fed Farewell)

Timmy agrees to testify:

Jan. 14 (Bloomberg) -- Treasury Secretary Timothy Geithner agreed to testify before a House panel investigating why the Federal Reserve Bank of New York asked insurer American International Group Inc. to limit disclosures of the government’s financial rescue to investors, a lawmaker said.

Representative Elijah Cummings, a Maryland Democrat who sought Geithner’s testimony before the House Oversight and Government Reform Committee, said in an interview that the Treasury secretary agreed to appear, subject to his schedule.

Cummings said Towns is trying to work out a convenient time for Geithner to testify. Also invited to testify before the panel is Thomas Baxter, the general counsel of the New York Fed, who said in a Jan. 8 statement that Geithner wasn’t involved in the disclosure issue.

A November 2009 audit by Neil Barofsky, the special inspector of the U.S. Troubled Asset Relief Program, determined that Geithner made the decision to pay banks 100 cents on the dollar for credit-default swaps tied to subprime mortgages they had purchased from AIG.

The panel yesterday subpoenaed Geithner’s telephone logs, e-mails and meeting notes about the New York Fed’s rescue of AIG. The New York Fed was directed by the panel to produce the documents by Jan. 19, Towns said yesterday in a statement.

http://www.bloomberg.com/apps/news?pid=20601087&sid=at2cCrsBCIeI&pos=3

As in any criminal interrogation, the committee needs to detain Geithner and Baxter in separate holding pens before appearing, so that the two accomplices can't coordinate their lies ... errr, stories.

This is potentially a career-ending event for Tim Geithner. He's a bankster insider, looting the Treasury on behalf of his clients. But it's the cover-up that will nail him.

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Re: The Bell Tolls For Timmy (a Fed Farewell)

Timmy agrees to testify:

Jan. 14 (Bloomberg) -- Treasury Secretary Timothy Geithner agreed to testify before a House panel investigating why the Federal Reserve Bank of New York asked insurer American International Group Inc. to limit disclosures of the government’s financial rescue to investors, a lawmaker said.

Representative Elijah Cummings, a Maryland Democrat who sought Geithner’s testimony before the House Oversight and Government Reform Committee, said in an interview that the Treasury secretary agreed to appear, subject to his schedule.

Cummings said Towns is trying to work out a convenient time for Geithner to testify. Also invited to testify before the panel is Thomas Baxter, the general counsel of the New York Fed, who said in a Jan. 8 statement that Geithner wasn’t involved in the disclosure issue.

A November 2009 audit by Neil Barofsky, the special inspector of the U.S. Troubled Asset Relief Program, determined that Geithner made the decision to pay banks 100 cents on the dollar for credit-default swaps tied to subprime mortgages they had purchased from AIG.

The panel yesterday subpoenaed Geithner’s telephone logs, e-mails and meeting notes about the New York Fed’s rescue of AIG. The New York Fed was directed by the panel to produce the documents by Jan. 19, Towns said yesterday in a statement.

http://www.bloomberg.com/apps/news?pid=20601087&sid=at2cCrsBCIeI&pos=3

As in any criminal interrogation, the committee needs to detain Geithner and Baxter in separate holding pens before appearing, so that the two accomplices can't coordinate their lies ... errr, stories.

This is potentially a career-ending event for Tim Geithner. He's a bankster insider, looting the Treasury on behalf of his clients. But it's the cover-up that will nail him.

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Re: The Bell Tolls For Timmy (a Fed Farewell)

I just find it interesting how we've trended here. Hopefully Geithner is booted as a result of this, but to be quite frank, why should we require that a public official is convicted of fraud, deception, and insider trading in order to get rid of them. Shouldn't we just be able to fire Timmy for incompetence???

Experience has already shown that the impeachment the Constitution has provided is not even a scarecrow. --- Thomas Jefferson

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