In a sane world Tim Geithner’s tax troubles would have kept him from being confirmed as Treasury Secretary. Unfortunately, we don’t live sane and those tax troubles pale in comparison to what we’re learning about the Geithner led Federal Reserve Bank of New York’s role in the AIG bailout: The Federal Reserve Bank of New […]
WSJ: Geithner Under Fire Amid Frustration on Economy
Normally I’d say the calls for Treasury Secretary Tim Geithner’s resignation were just hot air but given the recent disclosures about his role in AIG bailout while President of the New York Federal Reserve Bank, I suspect this is more than just normal political blustering: Snowballing frustration about the economy burst into a political fracas […]
Were Healthy Banks Forced Forced to Surrender Ownership Stakes to Government?
Were Healthy Banks Forced Forced to Surrender Ownership Stakes to Government? It’s question that needs to be answered… From reading this CNSNews.com piece it would seem at least a few “healthy” banks were forced into surrendering ownership stakes to the government: Last October, then-Treasury Secretary Henry Paulson ordered nine banks that the Treasury Department described […]
TARP Price Tag Could Reach $2.9 Trillion?
CNSNews has a rather frightening report on the Special Inspector General for the Troubled Asset Relief Program’s report to congress. In short the report says that although Congress limited the Treasury Dept. to spending only $700 billion on TARP the program’s partnerships with the Federal Reserve and the Federal Deposit Insurance Corporation could bring the […]
Obama Administration Seeks Broad Power to Seize Firms
This is rather frightening, the Obama administration is not only seeking broad power to regulate risk on Wall Street, they’re also seeking the broad power to seize companies that the Treasury Department thinks may represent a risk to our economy if they fail: Treasury Secretary Timothy F. Geithner is set to argue for the new […]
Son of a Bailout – Bush Gives Auto Makers $17.4 Billion
President Bush this morning morning announced a $17.4 billion bailout plan for auto makers. Under the terms of the plan GM and Chrysler would receive $13.4 billion in loans in December and January, with another $4 billion likely available in February. The deal is contingent on the companies’ showing that they’re financially viable by March […]
Treasury Throws Auto Industry a Life Line???
Damn! What is it with the Bush administration? Senate Republicans rightly stopped the auto industry bail last night and today the Bush Administration decides to use TARP funds to throw a life line to GM and Chrysler. From FoxBusiness: Despite the abrupt death last night of bailout legislation in Congress, it seems the Big Three […]
Here We Go Again: Feds Agree to Citibank Bailout
From the Wall Street Journal: The federal government agreed Sunday to take unprecedented steps to stabilize Citigroup by moving to guarantee close to $300 billion in troubled assets weighing on the bank’s books. Treasury has agreed to inject an additional $20 billion in capital into Citigroup under terms of the deal hashed out between the […]
Dick Armey: Bush Plan to Buy Bank Stocks Should Face Constitutional Challenge
Via CNSNews.com: Former House Majority Leader Dick Armey (R-Texas) said that the Bush administration’s plan to buy $250 billion in stock in U.S. banks should be challenged in federal court as unconstitutional. “I think that it is subject to a serious constitutional challenge,” Armey said in a conference call with reporters on Tuesday. “It is […]
The Good, The Bad and The Ugly…
The Good (H/T: MM): Congressman Jeb Hensarling (R-TX), Chairman of the House Republican Study Committee, today issued the following statement on the agreement reached by House and Senate negotiators on the Paulson plan, and his intentions on the final bill: “My top responsibility as an elected official is to protect the families and people who […]