Tuesday, October 13, 2009

Geithner’s All Ears for Debt Cartel



by Laura Flanders

Months ago, a former chief economist at the IMF called it mind control. Talking to Simon Johnson of the Atlantic Monthly, he explained that one of the most alarming truths laid bare by the economic crash was that the finance industry had effectively captured the thinking of government.

“That’s going too far,” said reasonable people. “This is no Banana Republic run by crony cartels.”

That was before we read Tim Geithner’s phone records.

Thursday’s AP report shows executives at a handful of companies — Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs — had not just the ear, but both ears of the Treasury Secretary to the exclusion of other even bigger and more troubled banks, and legislators.

As AP points out, Geithner had more contacts with Citigroup than he did with Barney Frank, D-Mass., the lawmaker leading the effort to approve Geithner’s financial overhaul plan. And Geithner’s contacts with Lloyd Blankfein, the chairman and CEO at Goldman, way outnumber his contacts with Sen. Christopher Dodd, D-Conn., chairman of the Senate Banking Committee.

After the week this May when GM almost went bankrupt and the government was considering a federal takeover, the treasury secretary called Blankfein, then Jamie Dimon, the boss at JPMorgan. Then Obama called and as soon as they hung up, Geithner was back on the phone with Dimon. Poor California Democrat Xavier Becerra — who handles silly stuff like taxes and budgets. He had to leave a voice-mail message. And Geithner wasn’t talking to all bankers — mostly with people he served on nonprofit boards with, and hung out with socially.

So. . . where others have drug cartels, we have a debt cartel? It’d be clear by now if Geithner was just listening to his friends to hone his arguments against greater bank consolidation, debt securitization and finance over industry but Geithner has yet to show any sign of breaking with his Wall Street pushers.

In a Banana Republic we’d pay out protection money. Oh, but I forgot, we did that already.

This is what happens when a debtor nation, [U.S.A.] is controlled by the Banksters of greed. We are now in the frying pan of a [HAMBURGER HELPER REPUBLIC].

5 comments:

  1. RZ, doesn't this dovetail beautifully with the one I posted yesterday. Great article.

    ReplyDelete
  2. T.C. as you mentioned in your comment.[the sheep] they are too busy in the pasture of infighting. the dots are all there, to connect this manufactured re/depression.

    ReplyDelete
  3. "They are a small cadre of businessmen who have known and worked with Geithner for years, whose multibillion-dollar companies all survived the economic crisis with help from U.S. taxpayers. When they call, Geithner answers. He has spoken with them immediately after hanging up with President Barack Obama and before heading up to Capitol Hill, between phone calls with senators and after talking with the Federal Reserve chairman"

    from: Takes More Than Real Change to Dial this Phone: Geithner's Records

    ReplyDelete
  4. Geithner Aides Reaped Millions Working for Banks, Hedge Funds (Bloomberg) -- Some of Treasury Secretary Timothy Geithner’s closest aides, none of whom faced Senate confirmation, earned millions of dollars a year working for Goldman Sachs Group Inc., Citigroup Inc. and other Wall Street firms, according to financial disclosure forms.
    The advisers include Gene Sperling, who last year took in $887,727 from Goldman Sachs and $158,000 for speeches mostly to financial companies, including the firm run by accused Ponzi scheme mastermind R. Allen Stanford. Another top aide, Lee Sachs, reported more than $3 million in salary and partnership income from Mariner Investment Group, a New York hedge fund.

    As part of Geithner’s kitchen cabinet, Sperling and Sachs wield influence behind the scenes at the Treasury Department, where they help oversee the $700 billion banking rescue and craft executive pay rules and the revamp of financial regulations. Yet they haven’t faced the public scrutiny given to Senate-confirmed appointees, nor are they compelled to testify in Congress to defend or explain the Treasury’s policies.

    ReplyDelete