Timmy G, who, as we know is getting really frustrated with the whole AIG bailout storyline, apparently had a nice convo with Warren Buffett, Jamie D. and Lloyd on the day AIG was bailed out, at least according to phone logs submitted by the Fed in response to a subpoena last week from the House Oversight and Government Reform Committee.
Tim- who will testify next week- is maintaining, he never “looked at AIG memos” and that he “wasn’t involved in any AIG decisions.” Actually, he doesn’t even have any idea what AIG is. That talk with the big boys? Wasn’t him on the phone. Now leave him alone. Go harass Ben.
Tim Geithner
Sources tell us that Timmy is “not enthused” with the proposals, and getting “increasingly frustrated and overwhelmed.” But let’s actually put some words in the Treasury Secretary’s mouth. Paul Krugman will start:
Various news reports that Tim Geithner is privately opposed to the new Obama bank plan — which isn’t that much of a surprise, but he should not be talking about it (if he is). What we do have is this PBS interview, in which he certainly isn’t doing much to back the concept. The correct answer to “In essence are you saying that big banks need to be broken up” is “Yes”; add some qualifiers if necessary — “we’re not talking about a sudden disruption, but about new rules of the game, but the eventual goal is smaller banks that aren’t engaged in inappropriate activities” or something like that.
As it was, Geithner might as well have had a chyron underneath as he spoke, with the words DON’T WORRY, WE’RE NOT GOING TO TAKE ANY REAL ACTION.
The Fed is funny. Not Bernanke-funny but getting there. That whole controversy about them pushing AIG not to disclose some information, especially regarding its counterparties and how much money they got? Well, it wasn’t that they refused to make the appropriate disclosures, but rather that they were trying to be accurate, hence edited some data. Oh, and also, blame it on the lawyers.
Some have also suggested that the FRBNY pressured AIG not to make required disclosures about material elements of the Maiden Lane III transactions, including that the counterparties received par value. This is also incorrect. It appears that this assertion is based, at least in part, on a misreading of emails among lawyers for the FRBNY and AIG.
So sayeth noted prognosticator John Carney.
Remember that story yesterday, about how then NY Fed Chair Tim Geithner and his staff maybe instructed AIG to keep its payments to banks hush-hush, as backed up by emails? Never happened, says New York Fed’s general counsel. He has no idea what any of you are talking about. In fact, he’s never even heard of this Tim Geithner guy. What’s he like?
“Matters of AIG securities law disclosure were not brought to the attention of the president of the Federal Reserve Bank of New York,” Thomas Baxter, the New York Fed’s general counsel, said in a statement.
The U.S. Treasury and White House also have said Geithner was not involved in any e-mailed discussions between New York Fed and AIG lawyers over disclosures of the insurer’s payments to banks.
God bless us, every one!How are we ever going to continue tricking the Chinese into buying our bonds if we can’t properly fudge our economic data or keep a certain lame-duck Treasury Secretary from exposing the lie?
So personal incomes rose 0.4% last month. Great. As with all recent economic indicators, that bit of good news was tempered by the fact that the market expected–nay, demanded!–better news.
And what were we doing with all these newfound riches? Buying crap. At least, buying slightly more crap than we did a month earlier, 0.5% more crap, to be exact. And this of course also disappointed the experts, who expected us to buy slightly more crap.
Tim Geithner is testifying before the the Congressional Oversight Panel this morning, and he’s doing so with a look that would be best described as Angelo Mozilo-lite. We need to know more. I leave it to you:
Tim Geithner’s Foot To Be Removed From Vikram Pandit’s Ass Sometime In The Very Near Future?
By Bess Levin
Maria Bartiromo says yes! Vickles has apparently postponed his trip to Disney World, so you know this is legit.
Citigroup plans to pay back some of the $45 billion in TARP money it received last year by raising capital through a stock offering of as much as $20 billion, CNBC has learned. CEO Vikram Pandit has changed his travel plans to be able to announce an equity offering, which is similar to that of Bank of America, according to sources close to the situation. Earlier today, Citi chairman Dick Parsons told CNBC the discussions with regulators have been active.
Tim Geithner Would Like To Like To Remind Wall Street’s Banks Of A Little Something, But Particularly Goldman Sachs
By Bess Levin
And that something is simply this: YOU COULD’VE DIED LAST YEAR, AND YOU WOULD’VE IF IT WEREN’T FOR TG. He could’ve left you to die in fire, or on the side of the road, like dogs. The only reason you’re here today is because he’s a mensch. Got it? Got it real good? Now commit it to memory, bitches because the T. Geith does not appreciate having to repeat himself. HE HEARS YOU TELLING PEOPLE ONE MORE TIME– ONE MORE!– THAT YOU WOULD’VE SURVIVED LAST YEAR WITHOUT HIS HELP AND TG IS JUST GONNA SNAP.
Taking aim at what he called “an era of irresponsibly high bonuses,” Geithner said all banks — even those that have repaid government aid — need to restrain the amount they pay their leaders and tie compensation to long-term goals.
The Treasury chief also disputed claims made by Goldman Chief Executive Officer Lloyd Blankfein that his firm would have survived last year’s financial crisis without assistance from the federal government.
Well, maybe not all that nigh. But when Lil’ Tim climbs high atop the Treasury Dept. building and stands on his tippy-toes, he can almost see something that somewhat resembles the end of the $700 billion government bailout program.
“We are close to the point where we can wind down this program and stop making new commitments,” Geithner told a skeptical Senate panel today.
How close? “We’re not quite there yet.” And certainly not in the next couple of weeks, when TARP is set to expire.
It’s not clear that he’s going anywhere any time soon though Dick Bové has already stamped her seal of approval on Jamie Dimon’s nomination for the Treasury Secretary’s replacement. But, the analyst cautioned, while JD is hands down the best man for the job,* and Obama wouldn’t be out of line simply locking TG out of the building and turning his office over to JD, the president must go about getting rid of Geithner carefully. Jazzy Jeff-style, while tempting, is not going to cut it. Firing Geithner requires a gentler touch, and a glowing letter of recommendation.
“The president must support his secretary and at the same time figure a way to ease him out of his position,” the analyst explained. “So what is the solution? Clearly Mr. Geithner must, at some point in the next few months, be moved to a very prestigious position outside the Treasury.”
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