asterisk2a + timgeithner   79

Ben Bernanke urges punishment of individual bankers - BBC News
>> Privatisation where and when it is needed. No, only if it suits their ideology and agenda. // regulatory failure. - - Ben Bernanke, John Mack Reflect on 2008 Financial Crisis >> NINJA Loan, homeownership, subprime, ... //&! Ben Bernanke on Lehman Crisis: "We Agreed to Be Vague" (Oct. 6, 2015) | Charlie Rose - - 'lehman brothers was a sink hole. money put in from gov in a saving attempt would have resulted in being pulled out by its counterparties and creditors. and had not enough collateral and assets.'
too  big  to  jail  regulators  morality  Justice  System  injustice  Law  &  Justice  white-collar  crime  corporate  scandal  accounting  scandal  mis-selling  CDO  CDS  Interestrateswap  benbernanke  book  TBTF  too  big  to  bail  GFC  trickle-down  economics  economic  history  Super  Rich  1%  bank  bailout  banking  crisis  investment  banking  bank  crisis  retail  banking  CEO  pay  CEO  Abacus  subprime  car  loan  NINJA  fairness  Generationengerechtigkeit  austerity  budget  deficit  Student  Bubble  Wall  Street  profit  maximisation  shareholder  value  free  market  Privatisation  MervynKing  George  Osborne  David  Cameron  self-regulation  regulation  deregulation  Career  Politicians  No  Representation  revolving  door  inequality  Gini  coefficient  income  distribution  oligarchy  democracy  social  contract  political  theory  timgeithner  UK  USA  ideology  dogma  lehmanbrothers 
october 2015 by asterisk2a
The real truth about the 2008 financial crisis | Brian S. Wesbury | TEDxCountyLineRoad - YouTube
bankers are greedy & excess speculation, is the story. Fed controls short-term interest rate through interest rate setting/Fed meetings based on fundy of American economy, // NIRP (greenspan put) post, distorts market, decision makers decisions. housing bubble w help of NIRP after & home-ownership campaign in bush years (fiscal stimulus/subsidies) 2 push that "asset." Not "home" to live in. // banks got too big to fail (their balance sheet/lending book) as liabilities (toxic assets - real downside unknown (due to complexity and day to day changes during crisis years), like CDO/CDS etc) overtook book, overall, value. Banking being actually insolvent, but how insolvent one doesn't know. Thus bad bank idea. ACCOUNTING. // Paul Volker raised rates ... was able, because USA (private household, banks, corporates) were not in a balance sheet recession. Problem was endogenous. // Deregulation + Lax accounting contributed to GFC greatly, unable to value banks books.
GFC  economic  history  fractional  reserve  banking  financial  crisis  monetary  theory  systemicrisk  Greenspan-Put  NIRP  ZIRP  negative  real  interest  rate  interestrate  reflation  reflate  balance  sheet  recession  deleveraging  debtoverhang  savings  rate  leverage  alangreenspan  greenspan  Ben  Bernanke  benbernanke  distortion  housing  market  accounting  too  big  to  jail  toobigtofail  TBTF  financial  market  financial  incentive  speculative  bubbles  speculative  speculation  hunt  for  yield  asset  allocation  asset  bubble  TARP  subprime  QE  stresstest  timgeithner  henrypaulson  economic  model  economic  damage  macroeconomic  policy  fiscal  policy  monetary  policy  history  paulvolcker  complexity  incomplete  information  business  confidence  consumer  confidence  confidence  banking  crisis  zombie  banks  mark-to-market  Janet  Yellen 
july 2015 by asterisk2a
Staatsverschuldung als Problem der Generationengerechtigkeit | Lars P. Feld | SWR Tele-Akademie - YouTube
henry paulson and tim geithner said they are in a moral hazard. put it the way to either nationalise (aka the end of American Dream, Failure part of capitalism) or bailout (gov loans and co like TARP). Rather the moral hazard was to either put current and future unborn generation in debt servitude they had nothing to do with and keep criminals private with all its benefits. Or really give a warning shot a privatise banks and end the profligacy of crony capitalism and Wall Streets shareholder value creation only and profit maximisation - without consequences. // and Europe looks towards USA and did the same; made banks whole again (because they were really - TBTF - and would pushed some EU countries into Great Depression/Insolvency. especially France & Belgium where bank liabilities were too big for public balance sheet) and took some of the debt onto its public balance sheet (and gave bailout loans) to be served by current & future unborn generation.
Generationengerechtigkeit  austerity  bailout  sovereign  debt  crisis  economic  history  Failure  zombie  banks  toobigtofail  TBTF  too  big  to  jail  Wall  Street  crony  capitalism  capitalism  fiscal  policy  academia  academic  moralhazard  morality  American  Dream  GFC  policy  folly  policy  error  World  Bank  IBS  IMF  liberal  economic  reform  neoliberal  neoliberalism  PIIGSFB  PIGS  Greece  Grexit  UK  fiscal  sovereignty  Pact  Schuldenbremse  Career  Politicians  No  Representation  democracy  banking  crisis  history  henrypaulson  timgeithner  benbernanke  Ben  Bernanke  Makers  lobbyist  lobby  Lobbying  ideology  dogma  populism  fairness  manufactured  consent  propaganda  financialcrisis  FinancialCrisisInquiryCommission  media  conglomerate  corporate  state  European  Union  fiscal  transferunion  European  Eurobond  currency  Agenda  2010  hartz-iv  Stability  and  Growth  Pact  generational  conflict  social  tension  social  cohesion  Verteilungskonflikt 
july 2015 by asterisk2a
Germany won’t spare Greek pain – it has an interest in breaking us | Yanis Varoufakis | Comment is free | The Guardian
Debt restructuring has always been our aim in negotiations – but for some eurozone leaders Grexit is the goal [...] To frame the cynical transfer of irretrievable private losses on to the shoulders of taxpayers as an exercise in “tough love”, record austerity was imposed on Greece, whose national income, in turn – from which new and old debts had to be repaid – diminished by more than a quarter. It takes the mathematical expertise of a smart eight-year-old to know that this process could not end well. [...] In my first week as minister for finance I was visited by Jeroen Dijsselbloem, president of the Eurogroup (the eurozone finance ministers), who put a stark choice to me: accept the bailout’s “logic” and drop any demands for debt restructuring or your loan agreement will “crash” – the unsaid repercussion being that Greece’s banks would be boarded up. [...] Wolfgang Schäuble, decided that Grexit’s costs were a worthwhile “investment” as a way of disciplining France et al,
Yanis  Varoufakis  debt  restructuring  debt  jubilee  Super  Cycle  sustainable  sustainability  Great  Depression  Greece  Grexit  lost  decade  lost  generation  PIGS  Troika  Germany  France  IMF  Angela  Merkel  ChristineLagarde  European  History  Wolfgang  Schäuble  Thomas  Piketty  ECB  MarioDraghi  Leadership  European  Union  Insolvenzverschleppung  insolvent  insolvency  austerity  economic  policy  folly  policy  error  Career  Politicians  No  Representation  dogma  ideology  propaganda  Lügenpresse  bailout  zombie  banks  populism  manufactured  consent  media  conglomerate  corporate  state  Jeroen  Dijsselbloem  Jean-Claude  Juncker  Eurogroup  EFSF  ELA  EuropeanSystemicRiskBoard  systemicrisk  toobigtofail  TBTF  too  big  to  jail  referendum  PIIGSFB  PIIGS  FrancoisHollande  academia  academic  academics  carmenreinhart  kennethlewis  Alexis  Tsipras  Syriza  Wall  Street  crony  capitalism  Podemos  Indignants  Indignados  occupywallstreet  fairness  GFC  recovery  economic  model  trickle-down  economics  economic-thought  shared  economic  interest  profit  maximisation  shareholder  value  economists  economic  damage  short-term  thinking  short-term  view 
july 2015 by asterisk2a
What Is A "Liquidity Trap" And Why Is Bernanke Caught In It? | Zero Hedge
"The real concern for investors, and individuals, is the actual economy. We are likely experiencing more than just a 'soft patch' currently despite the mainstream analysts' rhetoric to the contrary. There is clearly something amiss within the economic landscape and the ongoing decline of inflationary pressures longer term is likely telling us just that. The big question for the Fed is how to get themselves out of the 'liquidity trap' they have gotten themselves into without cratering the economy, and the financial markets, in the process. As we said recently this is the same question that Japan is trying to figure out as well." >> Tim Geithner once said in an agressive clear tone on that question 'the US is not Japan.'
monetary  policy  complexity  asset  bubble  unintended  consequences  M3  monetary  transmission  mechanism  liquidity-trap  BOE  ECB  deflation  BOJ  Structural  Impediments  lostdecade  QE  debtoverhang  NIRP  lostgeneration  economic  history  fiscal  policy  Debt  Super  Cycle  imbalance  austerity  ZIRP  USA  timgeithner  deleveraging  long-term  unemployment  deflationary  Richardkoo  Japan  balance  sheet  recession 
july 2013 by asterisk2a
Europe's Largest Insurer Allianz Not Amused That Central Banks Are Involved In Liborgate | ZeroHedge
"Europe's biggest insurer, Allianz, is worried about the role central banks may have played in an interest rate rigging scandal that has enveloped some leading international lenders, the insurer's chief financial officer said on Friday. "We do not find it funny, what has happened, in particular the arising implication that it is not just the banks but central banks being involved in this," Oliver Baete told a conference call with analysts. "That really gives us cause for concern," Baete added." Of course, neither the ECB nor the FED could care much, considering that Allianz would be immediately insolvent if the same central banks who manipulated Libor stopped manipulating interest rates... which is implicitly what Allianz is unhappy about.
policy  folly  policy  error  unintended  consequences  deleveraging  debtoverhang  balance  sheet  recession  lostdecade  greatrecession  GFC  reflation  sovereign  debt  crisis  bond  bubble  ponzischeme  PIMCO  MarioDraghi  PaulTucker  collusion  banking  crisis  bank  crisis  MervynKing  timgeithner  Fed  BBA  BOE  NYFed  ECB  centralbanks  Stockholm  Syndrome  LIBOR  rigging  scandal 
august 2012 by asterisk2a
We're (USA) Not Japan But One Can Always Hope | ZeroHedge
3 Years on ...

July 31 (Bloomberg) -- In today's "Single Best Chart," Bloomberg's Mike McKee displays how the current U.S. recovery is the slowest since the 1970's and even lags Japan at the same point of their recovery in 1993.

__Measured in Real GDP per capita :

USA post crisis (property and credit bubble + financial crisis followed by credit crunch, deleveraging, debt overhang and non-performing loans [balance sheet recession]) recovery is worse than the recovery of Japan from 1993 (property and equity bubble followed by credit crunch, deleveraging, debt overhang and non-performing loans [balance sheet recession]).


And Tim Geithner once said "the USA is not Japan".
paulkrugman  KennethRogoff  carmenreinhart  financialcrisis  property  bubble  creditcrunch  NPL  debtoverhang  zombie  banks  deleveraging  richardkoo  economic-thought  economic  model  Europe  GFC  greatrecession  economic  history  timgeithner  lostdecade  double-dip  UK  USA  Japan 
august 2012 by asterisk2a
Barofsky On Geithner: "We Should See People In Handcuffs" | ZeroHedge
Neil Barofsky continues his vendetta against NYFed/Fed/Tim Geithner

because Fed, NYFed and BOE (and BBA) knew of LIBOR rigging, and they allowed it to happen (and continue) in a system whose very survival is increasingly reliant on rampant criminality (rigging and non-transparent indicators of solvency).

Barofsky says is that Geithner and other regulators who allowed Lieborgate to proceed should not only lose their job but we should "see [Geithner] in handcuffs."
bank  crisis  banking  crisis  greatrecession  GFC  transparency  incentive  accountability  toobigtofail  NYFed  BBA  misconduct  fraud  MervynKing  PaulTucker  BOE  collusion  LIBOR  rigging  scandal  barofsky  timgeithner 
july 2012 by asterisk2a
Lieborgate: Here Come The Arrests | ZeroHedge
Barclays essentially threw years of quiet cartel cooperation under the bus. As a result, regulators, enforcers, and legal authorities, many of whom were in on this manipulation from the beginning, no longer had an excuse to not pursue civil and criminal charges against perpetrators, who until recently were footing the tabs at various gentlemen's venues and ultra expensive restaurants.


BBA changed some text on its website. Cover-up!?


Exclusive: Prosecutors, regulators close to making Libor arrests


Scandal will almost certainly end up as the biggest financial settlement in history (combined all).
trustagent  trust  banking  crisis  bank  crisis  governance  corporate  governance  BBA  MervynKing  timgeithner  accountability  bobdiamond  PaulTucker  BOE  Fed  NYFed  LIBOR  rigging  scandal  oligopol  cartel 
july 2012 by asterisk2a
Simon Johnson: The Federal Reserve and the Libor Scandal -
Bernanke on banking scandals: “I think the real issue is too big to fail,” correct, but the market cannot fix this
This New York Fed memo stands out as a model of clear thinking about the deep governance problems that allowed Libor to become rigged.
At the same time, the timing and content of the memo raises troubling questions regarding the Fed’s own involvement in the Libor scandal – both then and now.

According to the recent order against and settlement with Barclays by the Commodity Futures Trading Commission, the Libor “market” had by 2005 become a hotbed of collusion and price-fixing

Fed is responsible 4 the “safety and soundness” of the financial system in the USA, THEY had to make a decision, either to let them fail (GFC) and thus the economy, the people and the world. LIBOR rigging scandal and TBTF is the aftermath et al
lobby  credibility  society  double-standard  WallStreet  corporate  governance  governance  accountability  confidence  trustagent  trust  2012  2008  bailout  BBA  misconduct  fraud  barclays  CFTC  MervynKing  timgeithner  PaulTucker  BOJ  ECB  BOE  Fed  NYFed  bank  crisis  banking  crisis  greatrecession  moral  moralhazard  GFC  toobigtofail  LIBOR  rigging  scandal  benbernake 
july 2012 by asterisk2a
Skandal um Libor: Neue Vorwürfe gegen Bank of England - SPIEGEL ONLINE
Die Bank of England hängt mittendrin im vielleicht größten Finanzskandal der vergangenen Jahre. Immer mehr Hinweise deuten darauf hin, dass sie von den mutmaßlichen Manipulationen des Bankenzinses Libor wusste - auch wenn sie dies beharrlich zurückweist.

Der Deutschen Bank drohen Milliardenkosten

Anderen Banken drohen noch höhere Kosten durch die Affäre. Analysten des US-Instituts Morgan Stanley schätzen, dass allein die Bußgelder für die beteiligten Banken zwischen 450 und 850 Millionen Dollar liegen könnten. Hinzu könnten mögliche Schadensersatzzahlungen an Investoren kommen. Hier sieht Morgan Stanley die Deutsche Bank besonders gefährdet. Auf das Frankfurter Institut könnten in den Jahren 2013 und 2014 Kosten von mehr als einer Milliarde Dollar zukommen. In den USA wurden bereits mehrere Sammelklagen eingereicht, ...
deutschebank  barclays  PaulTucker  GFC  2008  BBA  NYFed  timgeithner  MervynKing  BOE  LIBOR  rigging  scandal 
july 2012 by asterisk2a
Geithner to King - Memo about LIBOR - June 2008
NY Fed understood depth of problem with Libor in June 2008, did they work with CFTC for immediate corrective action?


"1. Strengthen governance and establish a credible reporting procedure


"6. Eliminate incentive to misreport"

Meaning they knew things were murky with LIBOR, making it a secret secret among the few. Not publicly talking about it, and ignoring media reports about LIBOR.
GFC  2012  2008  PaulTucker  Fed  NYFed  BBA  BOE  timgeithner  MervynKing  LIBOR  rigging  scandal 
july 2012 by asterisk2a
What to watch for in the Fed's Libor doc dump - Decoder - YouTube
The New York Fed plans to release documents showing it took "prompt action" four years ago to highlight problems with the benchmark interest rate known as Libor and to press for reform. Karey Wutkowski offers 3 key things to look for in the paper avalanche. (July 12, 2012)
LIBOR  LIBOR  rigging  scandal  GFC  2008  2007  timgeithner  barclays  Fed  NYFed 
july 2012 by asterisk2a
Op-Ed about Tim Geithner and his time before Treasury Secretary. And Bove's thought Dodd-Frank and cost of regulation effects.
Op-Ed about Tim Geithner and his time before Treasury Secretary.

Rochdale’s Bove Doubts Volcker Rule Will Be Enacted (Audio)
Mar 2, 2012
Richard Bove, an analyst at Rochdale Securities LLC, says the Volcker Rule "is probably dead." Bove talks with Bloomberg's Ken Prewitt and Tom Keene on Bloomberg Radio's "Bloomberg Surveillance."
reform  regulation  financialmarket  Dodd-Frank  VolckerRule  timgeithner 
march 2012 by asterisk2a
Barack Obama's budget: Dealing with the debt | The Economist
But I imagine if Mr Obama does win re-election, making the electoral ramifications of his actions a second thought, and the economy stays healthy, he'll push to curb entitlement spending, and put Republicans on the spot. I could be wrong, but there seems to be just as much evidence pointing to Mr Obama as being Clinton 2.0 as FDR 2.0. And I think Mr Obama's team realises that if another Democratic president embraces the mantle of fiscal responsibility, the party will have earned ownership of the issue for some time to come.
socialsecurity  Medicaid  medicare  budget  deficit  PaulRyan  timgeithner  2012  barackobama  presidency  USA  sovereign  debt  crisis 
february 2012 by asterisk2a
London Banker: "Deficit Attention Disorder"
Geithner seems to abhor austerity and sacrifice, preferring any strategy which keeps debt growing to fund the investment banking, security, prisons and war industries on which the American economy now depends for so much of its GDP. (2 percent of Americans are in prison, while 1 percent work for the Department of Defense.) 
He encouraged a ten-fold increase in leverage of the EFSF to create a massive new debt overhang. Madness. The cure for a refinancing crisis is not more leverage to be later refinanced.
timgeithner  europe  sovereign  debt  debtoverhang  crisis  2011  EFSF 
september 2011 by asterisk2a
Wall Streets Euthanasia of Industry | Michael Hudson
Last weekend’s New York Times magazine had an interview with Sheila Bair, whose five-year term heading the Federal Deposit Insurance Corp. (FDIC) expired last week. Now she can begin to tell what happened. She said that Mr. Obama promised her that he would try to prevent the mortgage frauds that were occurring, especially in subprime mortgages, and support better bank regulation. But then she would learn, just an hour before he gave a speech, that he would have changed the draft that she had seen, and took out what he’d promised her. The rewrites apparently were done mainly by Tim Geithner, who acts as a lobby for the big bank contributors. Instead of running the Treasury to benefit the U.S. economy, he’s benefiting his Wall Street constituency. Significantly, he was a protégé of Clinton Treasury Secretary Robert Rubin, who gave the name “Rubinomics” to pro-Wall Street opposition to bank regulation and a dismantling of public control over the banking system.
sheilabair  lobby  lobbyist  Lobbying  timgeithner  robertrubin  larrysummers  greenspan  Dodd-Frank  subprime  regulation  reform  wallstreet  presidency  barackobama  oligopol  pharma  industry 
july 2011 by asterisk2a
Barofsky Says U.S. Banks Are Still `Too Big to Fail' - YouTube
Neil Barofsky, former special inspector general for the Troubled Asset Relief Program, talks about the impact of the Dodd-Frank Act on the financial industry one year after its passage. Barofsky speaks with Lisa Murphy on Bloomberg Television's "Fast Forward." (Source: Bloomberg)
Dodd-Frank  toobigtofail  TARP  bailout  capitalism  systemicrisk  discipline  USA  wallstreet  moralhazard  barofsky  lobby  lobbyist  Lobbying  JamieDimon  benbernanke  timgeithner  washington  presidency  barackobama  regulation  reform 
july 2011 by asterisk2a
Instead of Funding Retirement Accounts As Mandatory, Treasury Proceeds To Plunder The Most Since Debt Ceiling Breach | zero hedge
the Treasury was forced to "disinvest" another $20 billion from retirement funds. At this point the various funds that fall under this umbrella are underinvested by at least $120 billion and likely much more. Of course, this is not an event of default as per Geithner's fine print: as soon as the debt ceiling is hiked, these will be the first funds that are replenished. On the other hand, if there is no debt ceiling hike, and courtesy of marketable debt having priority to intragovernmental debt, government retirees are increasingly becoming the impaired class in what may be shaping up to be the world's biggest bankruptcy filing in history.
2011  debtceiling  sovereign  debt  crisis  pension  USA  fraud  politics  responsibility  accountability  timgeithner  presidency  barackobama 
july 2011 by asterisk2a
In Financial Crisis, No Prosecutions of Top Figures -
[Tim Geithner & Co. their] worry, according to these people, sprang from a desire to calm markets, a goal that could be complicated by a hard-charging attorney general.

Whether prosecutors and regulators have been aggressive enough in pursuing wrongdoing is likely to long be a subject of debate. All say they have done the best they could under difficult circumstances.
But several years after the financial crisis, which was caused in large part by reckless lending and excessive risk taking by major financial institutions, no senior executives have been charged or imprisoned, and a collective government effort has not emerged. This stands in stark contrast to the failure of many savings and loan institutions in the late 1980s. In the wake of that debacle, special government task forces referred 1,100 cases to prosecutors, resulting in more than 800 bank officials going to jail. 

SEC cautious ... taxpayer money in effect being used to pay for settlements.
bailout  fed  timgeithner  andrewcuomo  fraud  misleading  prosecution  SEC  FinancialCrisisInquiryCommission  financialcrisis  2008  2007  settelment  proptrading  ethics  henrypaulson  benbernanke  mortage  analysis  insight  2011 
april 2011 by asterisk2a
Geithners Gamble by Simon Johnson - Project Syndicate
"I don’t have any enthusiasm for…trying to shrink the relative importance of the financial system in our economy as a test of reform, because we have to think about the fact that we operate in the broader world…It’s the same thing for Microsoft or anything else. We want US firms to benefit from that…Now, financial firms are different because of the risk, but you can contain that through regulation."
timgeithner  toobigtofail  2011  recovery  USA  banking 
february 2011 by asterisk2a
On Rick Santelli's "Meet The Press" Appearance, A $113 Trillion Future Rounding Error, And The Metamorphosis Of The American Dream To A Nightmare | zero hedge
And now for some facts: On February 28, 2001 George Bush said this about his 2002 Budget: “It will retire nearly $1 trillion in debt over the next four years.” Instead, US debt, which at that point was $5.7 trillion, rose to $7.7 trillion. $3 trillion rounding error? Also in the same budget, Bush predicted a $5.6 trillion surplus over the next ten years, which would wipe out all of America's debt by 2011. The latest debt figure was $14.1 trillion. A $14.1 trillion rounding error, or a nearly five fold increase in "rounding errors" in a decade. At this point, the 2021 total debt (including insolvent Social Security) is expected to be $24 trillion. Applying the same rounding error variance to government "projections" means... $113 trillion in debt?
Most jarring, total US Debt to GDP will be over 100% in under 6 months. Paging Reinhart and Rogoff...
USA  sovereign  debt  gwbush  barackobama  presidency  crisis  outlook  projection  forecast  timgeithner  budget  2011  2010  2012  GDP  KennethRogoff 
february 2011 by asterisk2a
Fink Builds BlackRock Powerhouse Without Goldman Backlash - Bloomberg
BlackRock is the world’s biggest asset-management firm, a $3.45 trillion powerhouse that is Wall Street’s largest trading partner, set to pay investment banks $1 billion in fees this year. It manages $1.4 trillion for public pension funds in states including New York, New Jersey and California, and invests $240 billion for central banks and sovereign wealth funds such as the Abu Dhabi Investment Authority.

“There’s no bank, no sovereign wealth fund, no insurance company that’s as large as BlackRock,” says Ralph Schlosstein, a co-founder who left in 2007 and is now CEO of Evercore Partners Inc., a New York-based investment bank. “BlackRock today is one of, if not the, most influential financial institutions in the world.”
finance  risk  USA  wallstreet  BlackRock  dimension  size  hedgefunds  mutualfunds  treasury  timgeithner 
december 2010 by asterisk2a
Flawed Mortgage Papers May Pose Economic Risk, Panel Says -
Tim Massad, acting assistant Treasury secretary for financial stability, clarified his agency’s position. “We weren’t saying these problems aren’t serious,” he said. “They are extremely serious, they are clearly widespread, they do pose dangers and they need to be fixed. But based on the evidence today, we didn’t see a systemic risk to financial stability.”

But the meat of the report comes in its analysis of the threats that false loan documentation may pose to banks’ balance sheets and to financial stability in the broader economy. These perils are related to the possibility that banks will have to buy back loans from investors if they were based on false documentation, or if the proper records required when setting up mortgage securities trusts were not kept, the report said.
mortage  foreclosure  fraud  2010  treasury  timgeithner  government  H.R.3808 
november 2010 by asterisk2a
At Asia-Pacific Forum, Geithner Defends U.S. Policy -
He said that capital inflows into emerging markets were a vote of confidence in their fast-growing economies, and that a healthy American economy would benefit all its trading partners. “I think that confidence is justified,” he said, “and something that should be welcomed. It does come with pressures, and they’re going to have to manage those pressures.”

But Asian countries remained concerned about the effect of American policy.

“In the long term, there’s a hope that capital inflows will become good investments, but in the short term, they work to strengthen local currencies and that’s a problem,” the Japanese finance minister, Yoshihiko Noda, told reporters here. He said that Japan would work particularly closely with emerging economies in Southeast Asia to find solutions.
QE-2.0  Fed  timgeithner  G20  APEC  Brazil  currency  currencies  devaluation  2010  monetary  policy  Dollar  China  hot-money  Japan 
november 2010 by asterisk2a
Financial Crisis Panel Lends Sympathetic Ear to Lehmans Ex-Chief -
The commission’s hearing Wednesday did not focus on Lehman’s responsibility for its own undoing, including its excessive leveraging and speculative investments. Nor did it question the accounting gimmicks, known as Repo 105, that Lehman had used to conceal some of its debt, as a court-appointed bankruptcy examiner detailed in March.

FULD: “Lehman was forced into bankruptcy not because it neglected to act responsibly or seek solutions to the crisis, but because of a decision, based on flawed information, not to provide Lehman with the support given to each of its competitors and other nonfinancial firms in the ensuing days,”

lawyers for the Fed — Scott G. Alvarez, and Thomas C. Baxter Jr., — disagreed.

“The Federal Reserve did not ‘allow’ Lehman Brothers to die,” “tried hard to save it,”
“We did not succeed, but the effort made was serious and determined,” Mr. Baxter said. “We came very close.”
lehmanbrothers  2010  FinancialCrisisInquiryCommission  bankruptcy  Fed  agenda  timgeithner  bailout  bearstearns  henrypaulson  benbernanke  AIG 
september 2010 by asterisk2a
Geithner Struggles to Escape a Goldman Past He Never Had -
his first three years out of graduate school, when Mr. Geithner was a researcher for the global consulting firm founded by Henry A. Kissinger, the former secretary of state, he has worked at governmental agencies and mostly at Treasury.

Mr. Geithner began as a lower-level civil servant late in the Reagan administration and left 12 years later as under secretary for international finance at the end of the Clinton administration.

He went to the IMF for 2 years. In late 2003, he became president of the NY Fed

Administration officials and others close to Mr. Geithner say it most likely was the Fed job that gave rise to the sense that he hails from Wall Street, along with the fact that his mentor at the Clinton Treasury, former Secretary Robert E. Rubin, previously headed Goldman Sachs.

2008 became prominent as part of the triumvirate with Ben & Hank — a former chief executive of Goldman Sachs — that engineered the government’s bailout of the financial system.
timgeithner  2010 
august 2010 by asterisk2a
Dealbook - Paulson Likes What He Sees in Overhaul -
In the end, though, Mr. Paulson said that regulation on its own would not be enough to prevent another crisis. No, that will come down to people.

“As I’ve thought about it, this is very people-driven,” he said. “A lot of this is about the people who have the responsibility for the regulation when there isn’t a crisis and the people who have the responsibility during a crisis. Unless you believe that the big financial institutions were intentionally trying to blow themselves up, they were unable to spot a number of the issues.”

He continued: “I think it is asking a lot for regulators to be perfect — because they won’t be. But what you h
henrypaulson  financial  regulation  reform  crisis  creditcrunch  depression  greatrecession  usa  regulators  timgeithner  larrysummers  paulvolcker  VolckerRule  2010  2011  presidency  barackobama  Fed  treasury  fdic 
july 2010 by asterisk2a
Geithner Says Bailout Money Is Being Repaid -
Geithner, said on Tuesday that taxpayers were recovering their investment from the financial bailouts as the program was wound down. But he acknowledged there would probably be a loss from the rescue of the insurer American International Group.

More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out.

Richard Neiman, an oversight panel member who is New York’s top banking regulator, said many families that relied on the government’s program to keep their homes “may be left out in the cold.” He asked Mr. Geithner why thousands of mortgage modifications had been canceled.

Mr. Geithner said the homeowners involved had been unable to prove income and therefore their eligibility for the program.

However, he added, the government’s investment “will likely still result in some loss.” $36 billion. Much of the money needed to repay the government will come from the sale of assets.
TARP  AIG  mortage  property  timgeithner  2010  housing  housemarket  USA 
june 2010 by asterisk2a
G-20 Clash Over Recovery Risks ’Sub-Potential’ Growth (Update1) -
At a meeting of Group of 20 finance chiefs in Busan, South Korea, June 4-5, Treasury Secretary Timothy F. Geithner said the world cannot again bank on the cash-strapped U.S. consumer to drive growth and urged other nations to stimulate their own demand. European Central Bank President Jean-Claude Trichet said fiscal tightening in “old industrialized economies” would aid the expansion by shoring up investor confidence.

Each strategy carries threats for the global rebound that the G-20 said faces “significant challenges.” Continued stimulus risks bondholder revolt over rising debt burdens, while spending cutbacks could worsen unemployment. Relying on exports leaves the world prone to trade wars and competitive currency devaluations as countries seek to give their companies an edge.

Each strategy carries threats for the global rebound that the G-20 said faces “significant challenges.” Continued stimulus risks bondholder revolt over rising debt burdens, while spending cutbacks coul
G20  june  fiscal  monetary  policy  greatrecession  tobin-tax  banking  recession  2010  recovery  demand  growth  Europe  timgeithner  germany  USA  PIIGS  austerity  capital  liquidity  basel2  export  exports  currency  currencies  euro  yen  dollar  yuan  protectionism  economics 
june 2010 by asterisk2a
PIMCO Is Long CAD, AUD And CNY; Short EUR, GBP And JPY, And Other Disclosures By Paul McCulley | zero hedge
Q: What structural headwinds stand in the way of recovery in the U.S.?
McCulley: We believe the U.S. is in the second stage of a three-stage recovery. The economy was first propped up by policy response – low interest rates and fiscal stimulus. Currently, we are moving from the dark to the sunny side of the inventory cycle. The final stage – job creation, private income creation and self-sustaining demand growth – has yet to materialize, due to headwinds of deleveraging and de-risking.

We like to use the analogy of the three-stage-rocket; we are waiting for the thrust from that third rocket. There’s a great deal of uncertainty surrounding the hand-off from stimulus and inventories to job creation, and that is reflected in the Federal Reserve’s continued exceptionally low interest rate policy.
We believe the severe austerity measures brought on by the fiscal problems in the periphery countries, such as Greece and Spain, will lead to a chronic shortfall of Euroland-wide aggregate demand
recovery  usa  2010  inventory  greatrecession  QE  MBS  treasuries  Fed  monetary  policy  greece  spain  bailout  ECB  demand  economics  richardkoo  deflation  inflation  output-gap  china  currency  yuan  dollar  politics  timgeithner 
april 2010 by asterisk2a
Geithner Delays Congressional Currency Report To Avoid Insulting China
The Obama administration is delaying a report to Congress on currency policies amid calls from some lawmakers that it should cite China as a currency manipulator harmful to the U.S. economy.

Treasury Secretary Timothy Geithner said Saturday that he will delay publication of the report, due April 15, because several high-level international meetings in the coming months will be a better way to advance the United States' position.

Still, Geithner said in a statement that China should adopt "a more market-oriented exchange rate" to balance the U.S. trade deficit with China, which totaled $226.8 billion last year – the largest imbalance with any country. U.S. manufacturers say China's yuan is undervalued by as much as 40 percent and is a big reason for the massive trade deficit.
timgeithner  china  usa  currency  currencies  dollar  tradedeficit  yuan  barackobama 
april 2010 by asterisk2a
A Modified Bill Moves Regulatory Plan Forward -
That proposal set off criticism by Democrats and Republicans, some with close ties to the banking industry, that it was the first step toward having government bureaucrats approve and disapprove an array of products.

At a hearing on Wednesday before the financial services committee, Treasury Secretary Timothy F. Geithner said: “There has been a lot of concern that if you invest the government with the ability to decide what’s appropriate here and there, that will lead to less competition and choice. The chairman’s proposals, which I’ve had a chance to read quickly, provide a better balance of choice and protection.”

Mr. Frank said his measure would exempt various businesses — like merchants, retailers and providers of retirement plans — from oversight by the consumer financial protection agency.
CFPA  barneyfrank  timgeithner  regulation  reform  financial  banking  SEC  CFTC  derivatives  2009 
february 2010 by asterisk2a
Obama's Big Sellout : Rolling Stone
Then he got elected.

What's taken place in the year since Obama won the presidency has turned out to be one of the most dramatic political about-faces in our history. Elected in the midst of a crushing economic crisis brought on by a decade of orgiastic deregulation and unchecked greed, Obama had a clear mandate to rein in Wall Street and remake the entire structure of the American economy. What he did instead was ship even his most marginally progressive campaign advisers off to various bureaucratic Siberias, while packing the key economic positions in his White House with the very people who caused the crisis in the first place. This new team of bubble-fattened ex-bankers and laissez-faire intellectuals then proceeded to sell us all out, instituting a massive, trickle-up bailout and systematically gutting regulatory reform from the inside.
BobRubin  bailout  corruption  barackobama  presidency  government  usa  politics  economy  JosephStiglitz  AIG  bonuses  citigroup  campaign  TARP  history  lobby  wallstreet  lobbyist  Lobbying  larrysummers  timgeithner  goldmansachs  RahmEmanuel  barofsky  CDS  derivatives  regulation  reform  barneyfrank  LTCM  SEC  CFTC  ConsumerFinanceProtectionAgency  CFPA  coruption  FDIC  treasury 
february 2010 by asterisk2a
What the New York Fed Bought in A.I.G.’s Bailout - DealBook Blog -
In his statement releasing the document, Mr. Issa argued, “It’s not conjecture, it’s not speculation, it’s fact — the New York Fed gave a backdoor bailout to A.I.G.’s counterparties and then tried to cover it up.”
AIG  bailout  henrypaulson  assets  fed  timgeithner  documents  derivatives  MBS  subpoena 
january 2010 by asterisk2a
Doubts at Fed Over A.I.G.’s $30 Billion Payout -
Lawyers for the Fed argued in the documents that it did not have the legal authority to guarantee A.I.G.’s obligations. The New York Fed’s chief counsel is expected to reiterate this point in Congressional testimony on Wednesday.

Of all the government rescues undertaken during the credit crisis of 2008, none has stirred more outrage and raised more questions than the bailout of A.I.G., a global insurer that has received $180 billion in taxpayer commitments since its collapse 16 months ago. More fireworks are expected Wednesday as lawmakers hear testimony about the insurer’s rescue from the two men most closely associated with it: Timothy F. Geithner, the Treasury secretary and former president of the New York Fed; and Henry M. Paulson Jr., the former secretary of the Treasury.
fed  treasury  benbernanke  timgeithner  henrypaulson  AIG  bailout  MBS 
january 2010 by asterisk2a
The Reckoning - Citigroup Saw No Red Flags Even as It Made Bolder Bets - Series -
The bank’s downfall was years in the making and involved many in its hierarchy, particularly Mr. Prince and Robert E. Rubin, an influential director and senior adviser.

Citigroup insiders and analysts say that Mr. Prince and Mr. Rubin played pivotal roles in the bank’s current woes, by drafting and blessing a strategy that involved taking greater trading risks to expand its business and reap higher profits. Mr. Prince and Mr. Rubin both declined to comment for this article.

-- with hindsight -- these people were the architects of this crisis.
Summers and Greenspan and Rubin were part of the Clinton administration, and Bush partly too.
citigroup  MBS  robertrubin  fed  treasury  billclinton  administration  history  housing  bubble  architect  bailout  CDO  housemarket  barackobama  larrysummers  timgeithner  alangreenspan 
december 2009 by asterisk2a
Jeffrey Sachs: The Geithner-Summers Plan is Even Worse Than We Thought
Two weeks ago, I posted an article showing how the Geithner-Summers banking plan could potentially and unnecessarily transfer hundreds of billions of dollars of wealth from taxpayers to banks. The same basic arithmetic was later described by Joseph Stiglitz in the New York Times (April 1) and by Peyton Young in the Financial Times (April 1). In fact, the situation is even potentially more disastrous than we wrote. Insiders can easily game the system created by Geithner and Summers to cost up to a trillion dollars or more to the taxpayers.
jeffreysachs  JosephStiglitz  economics  timgeithner  larrysummers  bailout  toxicassets  PPIP  USA  2009 
november 2009 by asterisk2a
Despair over financial policy - Paul Krugman Blog -
The Obama administration is now completely wedded to the idea that there’s nothing fundamentally wrong with the financial system — that what we’re facing is the equivalent of a run on an essentially sound bank. As Tim Duy put it, there are no bad assets, only misunderstood assets. And if we get investors to understand that toxic waste is really, truly worth much more than anyone is willing to pay for it, all our problems will be solved.
timgeithner  bailout  PIPP  paulkrugman 
august 2009 by asterisk2a
Geithner Pressures Regulators on Banking Rules -
The Obama Team wants a new agency to protect the consumer, Consumer Financial Protection Agency (CFPA), under leadership of Elizabeth Warren.
Well - current regulators like the Fed, FDIC and SEC are not for it. And Tim raised his voice because previously they failed.
Banks and regulators have resisted a proposal to create a new agency to regulate credit cards, mortgages and other consumer debt. Ben S. Bernanke, the chairman of the Fed, has told Congress that it would be better policy for the central bank to continue to write the consumer product rules. Sheila C. Bair, the head of the Federal Deposit Insurance Corporation, and John C. Dugan, the comptroller of the currency, have said that bank examiners at their agencies should continue to be the primary enforcer of consumer protection laws at those banks they already regulate for safety and soundness issues.
Industry lobbyists could not be happier about the regulators’ opposition.
fed  FDIC  timgeithner  regulation  SEC  maryschapiro  sheilabair  benbernanke  lobbyist  supervision  oversight  CFPA 
august 2009 by asterisk2a

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