Monday, April 27, 2009

Geithner Finance Industry's Lackey?

President Obama offers soaring rhetoric about accountability, transparency, limits on executive pay, and a firm regulatory hand for America's financial sector. But those are just words. The NYT reported:

Even as banks complain that the government has attached too many intrusive strings to its financial assistance, a range of critics — lawmakers, economists and even former Federal Reserve colleagues — say that the bailout Mr. Geithner has played such a central role in fashioning is overly generous to the financial industry at taxpayer expense.

An examination of Mr. Geithner’s five years as president of the New York Fed, an era of unbridled and ultimately disastrous risk-taking by the financial industry, shows that he forged unusually close relationships with executives of Wall Street’s giant financial institutions.

His actions, as a regulator and later a bailout king, often aligned with the industry’s interests and desires, according to interviews with financiers, regulators and analysts and a review of Federal Reserve records.

Tim says he's saving the world. It looks more like he's saving Wall Street's backside, while leaving most shadow bankers free from any regulatory yoke. Geithner wants to restart greed with a tad less leverage. He does so with taxpayers' trillions. Corporafornication lives under the blue team.