Tim Geithner: Getting his butt kicked

Please see my previous post today on the possibility that Obama’s treasury secretary, Tim Geithner, may see his head  rolling soon here.  Here are a couple of excerpts from the hearing yesterday.  At issue is the use of taxpayer money to bail out AIG counterparties rather than just saving AIG itself and it appears that one of the major counterparties was Goldman Sachs.  In other words, AIG was a conduit to bailout Goldman Sachs and others.

This is the same Goldman Sachs that Bush treasury secretary Henry Paulson worked for.  The same Goldman Sachs that turned itself into a bank holding company so it could line itself up at the federal reserve trough and used that assistance to generate record profits. The same Goldman Sachs where reportedly the investment bankers have armed themselves as a precaution against pissed off taxpayers.

The NY Fed, which Geithner headed, tried to cover up this backdoor bailout.  This is an absolute outrage and looks like big trouble for the Obama administration.   I’m betting they’re going to throw him under the bus any day now.

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