Eliot Spitzer Attacks Paulson and Geithner

9 posts / 0 new
Last post
Mike Pilat's picture
Mike Pilat
Status: Platinum Member (Offline)
Joined: Sep 8 2008
Posts: 929
Eliot Spitzer Attacks Paulson and Geithner

I was just sent this piece written by none other than Eliot Spitzer. His recent scandal notwithstanding, Spitzer was former NY attorney general and governor. I would think that he has a decent understanding of "the way things work" in that state and he certainly has at least some influence left.

The piece he wrote explicitly demands that Congress investigate the connections between Goldman Sachs and AIG and also investigate the roll that Hank P. and Timothy Geithner played in these bailouts. 

See here: http://www.slate.com/id/2213942/

I do know one thing: When the original (remember that???) AIG bailout was being discussed frantically behind closed doors, there was at least one "outsider" present, other than AIG and gov. officials. That "outsider" to the AIG bailout was none other than the current CEO of GS. If I remember correctly, GS had over $20 Billion of exposure to AIG's business at that point. Thus, there was clearly a strong GS interest in keeping AIG afloat.

As we've recently learned, a great portion of the AIG bailout plunder has been funneled directly into what amount to covert bailouts of private and international banks. It seems that the executive bonus scandal is nothing more than a straw man to distract the media, Congress, and the sheeple. 

Any thoughts?

RussB's picture
RussB
Status: Silver Member (Offline)
Joined: Dec 9 2008
Posts: 101
Re: Eliot Spitzer Attacks Paulson and Geithner
Mike Pilat wrote:

If I remember correctly, GS had over $20 Billion of exposure to AIG's business at that point. Thus, there was clearly a strong GS interest in keeping AIG afloat.

As we've recently learned, a great portion of the AIG bailout plunder has been funneled directly into what amount to covert bailouts of private and international banks. It seems that the executive bonus scandal is nothing more than a straw man to distract the media, Congress, and the sheeple. 

Any thoughts?

Yes indeed, this was in part a money laundering operation. It's just amazing: AIG was going to cause the earth to blow up because it wouldn't be able to pay off on its bets, while the banks were going to do so because they couldn't collect on their bets, and these "public servants" are trying to tell us they couldn't have sat the two down and made them agree to a halfway solution? Here we have a smoking gun: there is no way Paulson and Geithner didn't know exactly what they were doing, and what they were doing was facilitating looting plain and simple.

As for Goldman's exposure, if I recall correctly they claimed, with adminstration backing, that their exposure was minimal, that their interest in the affair was purely public-spirited, and that was why there was nothing untoward about their presence at that conclave.

I wonder how many other lies are going to be exposed.

CB's picture
CB
Status: Gold Member (Offline)
Joined: Mar 18 2008
Posts: 365
Re: Eliot Spitzer Attacks Paulson and Geithner

The meeting was covered in the news last fall, but to date there has been relatively little attention paid to it - and I still don't see that there is much stomach for calling these people to account.

PS I see that the NYT has a piece discussing Spitzer's remarks - although they can't restrain themselves from disparaging the messenger "don't you remember how he was politically assasinated because he visited an escort? oh the shame!"

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: Eliot Spitzer Attacks Paulson and Geithner
Quote:

It seems that the executive bonus scandal is nothing more than a straw man to distract the media, Congress, and the sheeple.

Of course it is.  But we can't talk about it if people on this website don't want to go into what's really happening here because it distracts from the CC.  

We don't need Spitzer to tell us there's a cronyist relationship between DC and key Wall St institutions...if anyone's surprised by his article, you're sheeple.  Nor should we be suddenly surprised that there's a bigger story behind the media-sponsored story that's fanning the envy flames.  All of this proves we need constitutional government, remove power from DC, end the idea that we'll cycle old GS CEOs in to run our Treasury and then somehow believe that our government is independent, doing the right thing, end the idea that "professional" central bankers who have spent their lives working with and supposedly regulating those same GS types should run a mega-powerful bank that rules the world called the Fed.  The entire setup is a laundering operation...siphoning money from us into the hands of the powers that be.  What's happening today is just the latest cycle of laundering...it's been going on for a long long time.

 

 

ceci1ia's picture
ceci1ia
Status: Bronze Member (Offline)
Joined: Feb 7 2009
Posts: 79
Re: Eliot Spitzer Attacks Paulson and Geithner

Spitzer is actually in a very powerful position; he's already gone through the scandal. If the NYT wants to bring it up, they're just trying to attract attention away from the real issues.

Really, the only person who should bring it up is his wife. It's a personal thing and whatever they work out is their business. Maybe I've lived in California for too long, but I think adultery is not the end of a relationship, and it's no one else's business.

And now that he's been through the fire and lost his job, what else does he have to lose? Of course he can go for it and tell the truth. He could be a very effective crusader for the truth.

The most dangerous person is the person who has nothing to lose.

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: Eliot Spitzer Attacks Paulson and Geithner

Things have been spiraling out of control as corruption eats away at what was once a real economy.  The entire system is predatory - everyone is grabbing what they can steal while the government looks away; as long as someone slips an envelope in their back pockets.  We have lost our financial sovereignty to international thugs.

Larry 

hucklejohn's picture
hucklejohn
Status: Gold Member (Offline)
Joined: Dec 13 2008
Posts: 281
Re: Eliot Spitzer Attacks Paulson and Geithner

I concur with strabes.  I believe we need to firmly address, using the CM type analysis, to what extent the actions taken by the Federal Reserve & the Treasury are designed, not to strengthen the economy, but to bring it down.  Objections such as "that's a conspiracy" or "that's just Alex Jones" or that's just late night talk radio"  or "that's coming from a religious nut" or any other name calling or diversionary tactic simply hinder our community from getting to the truth.   

CB's picture
CB
Status: Gold Member (Offline)
Joined: Mar 18 2008
Posts: 365
Re: Eliot Spitzer Attacks Paulson and Geithner

Cecilia, that was exactly my point - the NYT was trying to diminish the impact of Spitzer's comments by bringing up what should have been a private matter. The escort scandal was illegaly leaked to the media in order to destroy Spitzer's career (and he was a fool to have set himself up for this).

Quote:

Spitzer says the AIG bonus issue is "penny ante" compared to the billions of the insurer's bailout money funneled to bad banks, and that Treasury Secretary Timothy Geithner owes America an explanation, quickly.

As for all those politicians piling on AIG this week? Been there. Done that.

"We pursued AIG and Wall Street's structural failures in a way that others shied away from because it was politically unpalatable for them to address those issues," Spitzer told host Brian Lehrer Thursday on WNYC Radio in New York City. "Now it is the flavor of the month. Everybody is jumping up and down serving subpoenas, beating their chests trying to be tougher than the next person."

Spitzer pursued AIG for years when he was New York's attorney general. The company eventually announced in 2006 that it would pay $1.64 billion to resolve allegations that it used deceptive accounting practices to mislead investors and regulatory agencies. AIG's veteran chief executive officer, Maurice "Hank" Greenberg, was forced to resign in 2005 after a long and contentious, sometimes ugly battle with Spitzer.

"He obviously believes history has vindicated him," said John Coffee, a professor of securities law at Columbia University, "and wants to remind America that he was there first."

Reuben Bailey's picture
Reuben Bailey
Status: Silver Member (Offline)
Joined: Mar 17 2008
Posts: 138
Re: Eliot Spitzer Attacks Paulson and Geithner

Those of us who have been on this site for a while, and on others like it, do know that.  There are those who are new to the site that have not caught on, and for that reason it should be discussed, and, for those who have not dicovered these issues yet, the sheeple, as you call them, people like Spitzer do need to say it.  We can use all the help we can get to wake people up to what is happening.

strabes wrote:

Of course it is.  But we can't talk about it if people on this website
don't want to go into what's really happening here because it distracts
from the CC. 

If this is aimed at my thread, I'll take the bait and say that you are is off the mark - I feel that it is very important to talk about these issues.  My point is simply that Chris' work should remain prominent on the site, more so than it seems now.

All the best.

Reuben Bailey

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments