In January Bloomberg reported that Tim Geithner called the CEO of Standard and Poor’s after the company downgraded US debt to explain that the move would have “ramifications” for the company. Now S&P finds itself embroiled in a lawsuit driven by the Justice Department which S&P says is punishment for the downgrade.
Is anyone, anyone, surprised by this?
Geithner was able to get in and out of Washington DC pretty much unscathed. But his legacy will haunt the Treasury for a good while.
I will say that he did his job – for the banks.
Robert Lenzner at Forbes would like to know about a few things.
At least he’s not doing too much damage in the private sector. At least not yet. Nice that the banks are happy to pay so much for Mr. Geithner to just show up and talk for an hour.
I made this video almost 4 years ago now and just stumbled across it again. It definitely deserves a re-post. The Liberty and Economics Review was my blog before AgainstCronyCapitalism.org became what it is today, in case you were wondering.
It’s sad but true. The combination of no moral compass and political connections can create a powerful money making (taking) concoction. And there are far too many people with this general disposition wandering Capitol Hill and the mirrored buildings of Downtown Washington DC.
The mega-banks are “mega” because the government helped make them that way. Instead of letting the big banks fail in 2008, Hank Paulson swept in and backstopped them, bailed them out, even though the market was trying to correct for years of stupidity both from Wall Street and Washington. The universe wanted to break up the cartel, but the government would not let it.
In this article in The Nation Robert Scheer explains why “It’s good to be Goldman.” Goldman Sachs that is.
If one wants to get paid (via the government/Wall Street axis) the old vampire squid is where it’s at.
The LIBOR rigging scandal is very deep, and it affected millions and millions of people. This was not just a few traders getting together and manipulating the second most important interest rate benchmark in the world. It wasn’t even just a few banks. It was pervasive, and it appears even condoned by regulators.