Wednesday, May 20, 2009

Geithner Cleverly Dodges PEU Question

CNBC aired Treasury Chief Tim Geithner's testimony before the Senate Banking Committee. Senator Reed asked why Treasury's Office of Thrift Supervision allows private equity underwriters (PEU's) to buy a majority interest in thrifts, when the Fed bars the same firms from holding more than 24.9% of any bank. Tim dodged.

Geithner said there should be one standard, implying Treasury's OTS standard should be it. Tim and the Obama administration changed it. Someone coached him to couch his answer in bureaucrat-eeze. The PEU boys look to win again.