Blogs » A Constitutionalist & Believer in Natural Law » Treasury Secretary Timothy Geithner


A recent story, by Daniel Wagner, AP Business Writer is rather disturbing.

The story talks about undisclosed emails that show the lawyers of the Federal Reserve Bank of New York (then led by Treasury Secretary Timothy Geithner), pressured AIG to not disclose it’s payments to banks, including Goldman Sachs and Deutsche Bank, to cancel financial deals. At the time Federal Reserve Bank of New York President, Timothy Geithner was negotiating a deal with the Federal Government to bailout AIG.

It appears that Timothy Geithner has mishandled billions of dollars and has been to easy on the Wall Street banks, especially with the ones that helped him get appointed to the Federal Reserve Bank of New York.

The Federal Reserve Board of Governors claim it had kept secret the name of banks that benefited from the AIG bailout until recent, because it would collapse the efforts to stabilize financial markets. This statement was bogus; because when the list of banks was released the financial markets had only minor reaction.

It appears that Geithner hid from making any statements by sending out the Treasury spokesperson, Meg Reilly, whom said “Somehow the fact that the government's loan is 'above water' gets lost in all the consternation,” AIG bailout "is on track to be paid back in full with interest so that taxpayers will be made whole”. Her comments are very disturbing to me, because it suggested that any unethical dealings were justified because the government will get all its money back plus interest.

This whole chain of events appear to me as a continued process of back room deals, hidden sweet heart deals for Wall Street, and sleazy dealing in Washington by Geithner and the Fed.