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Stephen Lynch (D-MA), showing an unusual amount of fire, just lit into Tim Geithner in the House Oversight Committee hearing. He said that Geithner’s conduct was “not on the side of the American taxpayer.” He reminded Geithner that the Treasury Department “scalped the folks at Bear Stearns, 2 cents on the dollar. Goldman (Sachs, a counter-party to AIG) got 100 cents!”
Lynch added that it “stinks to high heaven what happened here” and called it inexcusable, saying “It makes me doubt your commitment to the American people.” Geithner replied that the American people would not have benefited from AIG defaulting, suggesting that was the only option other than paying off the counter-parties at par.
Lynch wasn’t buying it. “You were creating new facilities every week. We were changing the rules day by day. We had leverage, and we chose not to do it!”
Lynch closed by saying that “(Treasury Secretary Hank) Paulson brought everyone into a room, and said they were all taking bailout money, why couldn’t he have negotiated a better rate on behalf of the American taxpayer?” Geithner responded, “Why would I want to be in front of you today explaining actions that could have been avoided. If you cannot default, you do not have leverage. There was no choice between default and restructuring.”
Later on in the hearing, Marcy Kaptur (D-OH) got Geithner to admit that he never signed a formal or binding recusal agreement from NY Fed activities once he was nominated for US Treasury Secretary. The bulk of her questions sought to make the connections between the government operators involved in the AIG bailout and Goldman Sachs, the largest domestic beneficiary of the counter-party payments. She noted that the chairman of the NY Fed is elected by the individuals who sit on the board, which are the heads of the private banks in the region (“Not true,” Geithner said. “I work in the public interest”) She noted that Mark Patterson, Geithner’s current chief of staff, worked for Goldman Sachs. She said Hank Paulson, then the Treasury Secretary, worked for Goldman Sachs. She said Dan Jester, the man hand-picked by Paulson to be Treasury’s point person on AIG, also worked at Goldman Sachs. “You are suggesting that the people involved in this were not acting in the public interest… that is not true,” Geithner replied.
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Both Reps were powerful -delightfully so.
And I love how Geithner sometimes grades the questions.
Why schedule both for the same day? ANd what possible schedule conflicts does Paulson have?
Marcy Kaptur was asking about Tim’s frequent phone calls to rahm emmanuel right as her time was up.
Stephen Lynch was like a breath of fresh air.
Isn’t it about time for an “I’ve become a distraction to the Administration” speech and stepdown from Geithner? Oh, yeah, that’s just for the progressive chumps, not the important people they need no matter how much trouble they cause.
Geithner hates the average american.
People like Geithner hate the idea of America.
What the congress people should ask Geithner is who do you really work for?
Because base on your actions, we all know you do not work for the American People.
Mass. is smokin’. Rep. Tierney asked a question that seemed to bother Hank a lot. After making the statement clear that the Congress had nothing to say about whether to allow TARP..Rep. Tierney wanted to know if the Fed. just printed up the money. Seemed to bother Hank as he started stuttering.Makes you wonder the sifnificance of that question.
Usually at the one year mark, people begin to leave the administration so I have fingers crossed. Of course with our luck, it would be the WH chef.
Sorry to be the wet blanket today but just like Pres. Obama’s “spending freeze” this is simply grandstanding by the dem pee-pants to try and appease the progressives in leiu of real and meaningful actions on their part. Kabuki theatre plain and simple…
To Geithner, Bernanke et al, the “public interest” is represented by investment banks on Wall Street. The world you and I live in is considered a revenue stream, nothing more.
They will blame it all on the janitor.
A Master of the Obvious, I see. Thanks for the enlightenment.
Rep. Souder says he did vote for TARP. So I wonder if all the bail outs were voted on.
Perhaps, but they certainly haven’t done anything else to appease the Progressives. Why start now?
Incredible. Geithner’s failure to Act, like every good capitalist corporatist highest duty, on behalf of the stockholders and not against them, (especially when one is holding all the leverage) calls for a major investigation. Geithner and Bernanke should be removed from Office – the American people should demand sunlight and a major revolutionary course correction.
We’re fucked if we refuse to learn from, and respect the lessons of the past….
People like Geithner, Bernanke and Summers loathe the “little people.” I would also include Rahm on this list. They distrust democracy and prefer a world owned and operated by a wealthy elite. They have more in common with Louis XVI’s court in Versailles than the American people.
too true.
I’d have to say GS shareholders made out quite well.
All documents and e-mails will be classified and nothing and no-one will ever be prosecuted.We need to start realizing that these scumbags are all inter-connected and are above the law.
By the way,has anyone seen AG Cuomo????
Gee, our rep from Massachusetts seems to have grown a set.
I wonder if the recent election had anything to do with that ?
Read the other day that he is definitely going to run for gov – although it didn’t come from him.
Two out of the entire committee. At least it’s more than the usual 1. We’re makin’ progress.
Hank stutters a lot. Seems very very afraid.
what about Société Générale, Deutsche and other foreign banks !
American taxpayers have been forced to bail out a whole separate global ‘Class of People’, not just our dysfunctional financial system.
This is absolute grounds for civil disobedience.
I don’t see that my getting arrested in the lobby of GS would bring more negative attention to them. Or that they would give a rat’s ass.
“(”Not true,” Geithner said. “I work in the public interest”)”
And the public interest as Geithner understands it is to serve the ueber rich as, to borrow from Southerndragon, a revenue stream.
Sure , same old same old
Hank ain’t going anywhere!
Kanjorksi used his time to rehabilitate Pahlson
He’ll have a nice
wad of cashcampaign contribution from GS shortly.Kabuki or not, I enjoy seeing that Kaptur got under Geithner’s skin by pointing out all the admin people from Goldman Sachs.
He obviously got her point, responding that she was implying that those folks weren’t working in the public interest, and denying it.
The probllem is all those GS and other Wall St folks really believe that the public interest means “the market”, “the Street,” etc., etc.
Wasn’t there something just the other day about “reassuring Wall Street?”
It’s so common I can’t remember what it was about.
Anyway, I really think a good start would be to get rid of all those Street people. They are clearly not able to adjust their thinking, to broaden their view of the “public interest.”
Reminds me of listening to Condi and Alberto back in the day.
Same old “I had no knowledge” bullshit.
Where’s Paulson off to, a bird walk or Davos?
I want to see how many times Obama uses the term “working class” tonight. My money’s on zero. It’ll be all “middle class.” Without the working class there is no middle class.
A Master of the Obvious, I see. Thanks for the enlightenment.
The american taxpayer is nothing more than a means to and end for these people. Beyond disgusting how they expect us to purchase all their toxic debt then turn around and say we shouldn’t know what we purchased, all the wile americans are losing their homes and jobs.
If by “appease” you mean piss off….
Citizen SouthernDragon:
As usual, Brother Dragonman, you are zeroed in and locked and loaded and we all know that the entire game of keepin’ the Federal Reserve “independent” is to keep the American people from using the power of democracy to redirect those “revenue streams” back into the enterprise which is America and the American worker. What I want is for every network that is broadcasting the President’s speech tonight to lead in with the 6 minutes Geothner had with the Honorable Representative Lynch.
As an aside, are you still up for puttin together a collective post on vets re-integration from military service in time of “war”…I still haven’t given up on the idea?
I have decided for health reasons I will skip watching.
It’s already to the point that I can’t hear is voice or look at his face.
Blue Texan’s regularly scheduled post is ready for our perusal: Shorter Max Baucus and Blanche Lincoln: Help Us Olympia Snowe, You’re Our Only Hope!
When does the lying sack-o-shit start saying “I don’t recall”? Timmeh ‘Gonzo’Geithner.
You betch’um, Red Ryder. I think Raven’s a go as well.
Citizen Mesa Mick:
And your point about “master of the obvious is…?? If you are tryin’ ta piss in the Dragonman’s shoes ya better find someone else ‘cuz you don’t have equipment large enough to do the job.
I don’t have digital teebee and I’ve got a lotta books callin’ my name. I can buy ‘em faster than I can read ‘em. Funny. that.
The surprising thing about this hearing so far is there are no major revelations, as far as I can tell. The Staff and Committee reportedly got hundreds of e-mail relating to the AIG bailout and follow up, but nothing revealed so far seems to be anything like a smoking gun that shows anyone is lying, etc. So far, all we’ve seen is a bunch of huffing and puffing from reps on both sides, but it’s just ranting on their parts, it’s not producing any new evidence or admissions from Geithner or Paulson.
Oh, heavens yes; nobody uses “working class” anymore. Do even union people use it?
Nobody wants to be working class today; we are all “middle class,” whether we earn $10 an hour or $10,000 an hour.No one will admit to anything else, and so most would be insulted to be called “working class.”
I’m pretty much with Paul Krugman – don’t plan to watch. I can read the transcript – quicker and therefore less painful.
Are you really surprised? Really?
At this point, I’ll almost settle for pissing Timmy off.
I’ve always been working class and damn proud of it.
LOL I can get behind that
hmm
who’s side are they on?
Man, I wish you were the one asking the questions, SD.
;~DW
Sigh, Eleanor really should take out the gum.
Yeah, but Dragon, you know you are unique. ; )
The thing that blows my mind is that Congressional hearings are supposed to be information gathering sessions. What we get is speechifyin’ by the committee members followed by a couple softball questions to give the impression they’re doin’ their job. I can make a better impression with an air molecule.
We’re all unique.
heh I first read that as “gun”. *g*
Yeah. Congressional hearings jumped the shark when they quit using well-prepared staff to do the questioning, and allowed the Congresscritters themselves to take the air-time. They just can’t help themselves.
Watergate would be ignored today; even if there were hearings, they’d be like this, nothing would be learned, and of course, nothing would be done. Nixon would never have resigned with a bunch like this (and of course, no Repub would dare or want to advise their own pres to resign).
What I wouldn’t give for a Barbara Jordan today.
The last time anything useful or surprising came out of a congressional hearing was Watergate. These things are all kabuki theater designed to make the rubes at home think their congresscritters are really on their side while they take lobbyist money during the breaks. My guess is Goldman Sachs has their guy outside the Committee doors handing out large campaign checks.
If Geithner EVER worked one minute in the real “public interest” instead of his distorted “Wall Street is the public” interest, I’d be shocked. These people are so disconnected from ordinary people’s lives they would probably be shocked to learn not everyone has a limousine and driver at their disposal.
Citizen SouthernDragon:
“We are all unique.”
And we’re all the same,”…endowed by our creator with certain…”. This is what it all boils down to, isn’t it?
There was a time when Hill staffers spent their entire career on the Hill. They now have more of a revolving door than the congresscritters. People were proud to be public servants. Now it’s the Dollar Almighty.
Simple, ain’t it? *g*
Back to work. Nice chattin’ with y’all.
Namaste
Yes.
We are always surprised at how blatantly Congress ignores their responsibilities – and yet, we aren’t.
With ten people like yourself, say any ten from this community, Washington would be set on its ear.
And the people would hear, because that is what is needful.
The “information” to be gleaned is NOT just for the use of Congress, their friggin’ job is to inform US, not to play games, with our lives or Congressional pages, AND definitely not to hide what we MUST KNOW behind walls of “National Security”, and I assure you, were the answers “gleaned” to be truly useful to the people, that is just what would be requested by the PTB representing the MOTU. But all of us know that already.
DW
Funny, was just saying that on another thread.
I appreciate what the Representative was trying to do, but the correct response to Geithner’s retort about necessity would have been, “So you’re telling me that if Goldman Sachs made 99-cents on every Dollar, rather than 100-cents, that the American taxpayer would have been significantly worse off? Yes or No?”
If he answers, “Yes.” Then you follow up with, “Then you’re telling me that the American taxpayer is significantly worse off every time Goldman Sachs loses a little bit of money? Yes or No?”
If he answers, “Yes.” Then you follow up with, “Then it looks like Goldman Sachs has succeeded in usurping the sovereignty of the United States of America, and I suggest we withdraw its corporate charter, and seize its assets as a matter of fundamental national security.”
Nice,
Very nice, Nathan.
DW
If he answers, “No.” to either preliminary question, then he invalidates the entire basis of his argument; implying culpability, and only the degree of which left to be determined. In case that wasn’t obvious to everyone.
I would have thought an attorney such as Rep. Lynch would be better at argumentation, but I suppose there are all different kinds of lawyers.
I would agree with that. But the committee staffers didn’t sound much better when I had the opportunity to hear them on a call last night. The only new piece of data is that Geithner didn’t sign a formal recusal statement.
http://www.huffingtonpost.com/2010/01/27/revealed-see-who-was-paid_n_438933.html
Some of the dope on AIG’s clusterf*ck
Whoa! See Southern Dragon’s reply #11 to Mesa. Turnabout’s fair play, and that’s all I’m gonna say.
Yeah! it stinks to high heaven,the problem going forward is that you have a Dem Prez who now sees himself as part of the “high & mighty rich folks club”,and thus is more than willing to continue to give comfort to the thieves.
Stephen Lynch embarrassed himself. Could he possibly demonstrate to any greater degree a complete ignorance of how capital markets function?
The fake angry rant livened up the circus though.
Timmeh wrong-way Geithner is the Sec. of the Treasury (wretch). He should on behalf of the taxpayers, CLAW BACK, 98 cents on the dollar from Government Sachs.
On the other hand, The purchasers of these securities should have known better (that Goldman’s bets short while selling long).
Who said this, does anyone remember? Jamie Dimon or lloyd Blankfein?
Pres. Obama told us Mr. Geithner was the smartest man in the world and no one else could save us from catastrophe.
That must be true if Pres. Obama said it.