Tim Geithner

Barofsky met with Geithner in the fall of 2009 to express his concern that the Treasury Department had made TARP unpopular by not being fully forthcoming about how TARP was being used, including not forcing banks disclose how they were spending TARP funds. Geithner got dramatic, [Barofksy writes in his new book, Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street and said] ‘Neil, you think I don’t hear those criticisms? I hear them. And each one, they cut me,’ he said, pausing and then making an emphatic cutting motion with one hand as he said ‘like a knife.’” After a Geithner subordinate in the room, Herb Allison, expressed personal offense at Barofsky’s suggestion that Geithner has not been fully transparent, Barofsky responded, “I am not suggesting that the secretary has failed in transparency, I am stating it. Mr. Secretary, you’ve failed to be sufficiently transparent, and that is one of the reasons why people are so angry. But you can still fix it.” And that’s when the ticking time bomb that was Geithner erupted, telling Barofsky: ‘No one has ever made the banks disclose the type of shit that I made them disclose after the stress tests. No one! And now you’re saying that I haven’t been fucking transparent?’ Cooler heads prevailed, and the meeting went on, but Geithner never really came fully off the boil. “As we parried back and forth, Geithner repeatedly reached a pitch of anger, regaling me with detailed expletive-filled explanations that established my apparent idiocy. He would then calm himself down and give me a forced, almost demonic smile.” After the meeting was over, Barofsky and his deputy, Kevin Puvalowski, had a big laugh about it. ‘In all honesty, I think he was about to come out of his chair and beat the living shit out of you,’ Puvalowski remarked. [HuffPo]

As long ago as June 2008, New York Federal Reserve President Timothy F. Geithner was warning the Bank of England that letting bankers set the benchmark interest rate for global finance was open to abuse. Governor Mervyn King’s failure then to take greater responsibility for Libor now poses a new threat to London’s drive to rival New York in the battle for a larger share of a shrinking international financial industry. “As a company, we now avoid London,” said David Kotok, who manages about $2 billion as chief investment officer at Cumberland Advisors Inc. in Sarasota, Florida. “It’s tarnished. Passing the buck to others, shirking responsibility and avoiding accountability characterizes the people at work there.” [Bloomberg via Heidi Moore]

How will you be spending your weekend? I know what I’ll be doing, which is reading all the Lehman bankruptcy documents. They’ve been online for a week or two and we’ve had some teasers today, covering how much all the big fish got paid and how much all the medium-sized fish in IBD got paid. Naturally those were the first things anyone noticed because, y’know, money. And money is important. But this industry isn’t just about money. It’s also about hope:

It’s about faith: Read more »

“You can smile and laugh about it all you want,” Rep. Jason Chaffetz (R., Utah) bristled at Mr. Geithner during a House Budget Committee hearing. Mr. Chaffetz then intoned he was getting sick of the Treasury secretary’s “silly little smirk.” To be sure, Mr. Geithner did have a smile on his face during parts of the hearing, particularly when he was interrupted by Republicans on the panel when they didn’t like his answers on deficit reduction. He even spent part of the hearing answering questions with his arms crossed. At one point, he suggested that Rep. Tim Huelskamp (R., Kan.) had an “adolescent perspective” on how the economy worked. [Washington Wire]

Remember, back in June, when Tim Geithner said he was considering retiring from his post at the Treasury after the debt deal passed, telling friends that he was tired, needed a break and wanted to put family first (his wife and son live in Westchester, where the latter is finishing high school)? And the White House was all, “good one, buddy!” and “joked” about forcing him to wear an ankle monitoring bracelet before making clear in no uncertain terms that TG wasn’t going anywhere? Apparently Tim doesn’t.  Which would explain the laughable statement he made earlier today, vis-à-vis being allowed to go home any time soon: Read more »

“You know what I would like to see?” Spitzer asked the crowd. “I’d like to see a petition with a hundred million signatures, submitted to the White House tomorrow morning, saying, ‘Give us a treasury secretary who understands reform.’ Bring Paul Volcker in. Bring in Joe Stiglitz. Bring in Paul Krugman. Bring in Robert Reich…Spitzer, who was booted from the network after the program failed to offset a ratings slump, told Capital on his way out the door that he has no plans to embark on another media venture anytime soon. “Right now I’m having loads of fun,” he said. [Capital NY]

TG is calling for a little teamwork. Read more »