http://tinyurl.com/cv9urn
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NEW YORK - While the nomination of Treasury Secretary Timothy Geithner
generated plenty of heat because of his failure to pay income taxes for five
years, almost unnoticed amid the controversy is the fact that he presided
over the failure of some of the largest banking institutions in the world -
institutions he was charged with overseeing and regulating as head of the
New York region of the Federal Reserve Bank.
On Nov. 17, 2003, Geithner became the ninth president and chief executive
officer of the Federal Reserve Bank, a position he held until he was
nominated by President Obama as treasury secretary.
The Federal Reserve's charter makes it responsible for the strength of the
financial institutions operating in each of its 12 regional districts. The
Federal Reserve Bank of New York presides over Wall Street-based financial
institutions.
In the current financial crisis, the Federal Reserve has played a major role
in responding to the meltdown of banks and investment firms, including some
of the nation's largest.
During Geithner's tenure as CEO of the New York Fed, he presided over the
following major economic failures:
* March 2008: Investment bank Bear Stearns collapses from losses in
subprime mortgage obligations and derivatives transactions; J.P. Morgan
Chase buys Bear Stearns in a deal arranged by the Federal Reserve for the
dramatically reduced value of $2 a share, with the Federal Reserve
guaranteeing J.P. Morgan against $30 billion in Bear Stearns asset losses.
* September 2008: Wall Street investment bank Lehman Brothers closes
doors in bankruptcy after the U.S. Treasury and Federal Reserve refuse to
arrange a merger plan, a bailout or a guarantee program to save the Wall
Street giant.
* September 2008: The Bank of America buys Wall Street investment bank
Merrill Lynch in a $50 billion deal that saves Merrill Lynch from having to
declare bankruptcy.
* September 2008: The Federal Reserve extends to insurance giant
American International Group, or AIG
, an $85 billion loan that saves it from going bankrupt from
derivatives loses in a massive $441 billion exposure to credit default
swaps.
* November 2008: Citibank received $45 billion through the Troubled
Asset Relief Program, or TARP, plus Treasury Department, Federal Reserve and
FDIC guarantees on $306 billion in troubled assets held by the bank.
* January 2009: Morgan Stanley takes over Citibank's Smith Barney
investment unit as Citibank unravels the "financial supermarket"
conglomerate accumulated when Sandy Weill combined Travelers Insurance,
investment bank Smith Barney and Citibank to form Citigroup in the 1990s.
The Obama administration has touted Geithner as a financial wizard uniquely
qualified to preside over the U.S. Treasury during this period of economic
crisis, despite the obvious failure of the New York Federal Reserve Bank to
sustain the solvency of New York financial institutions during his tenure.
Globalists also noted Geithner's credentials. He worked for Kissinger and
Associates for three years in Washington, D.C.
Then, from 1998-2001, he served as under secretary of the treasury for
international affairs under Clinton administration treasury secretaries
Robert Rubin and Lawrence Summers.
He is an active member of the Council of Foreign Relations.
Geithner also has previous ties to Obama.
At the Ford Foundation in the early 1980s, Geithner oversaw micro-finance
programs in Indonesia, where he reportedly met in person with Obama's
mother. Ann Dunham spent part of her career working in Indonesian
micro-finance after she received her Ph.D. in anthropology.
- - -
Not that the facts matter anymore. A tax cheat who presided over the
collapse of financial institutions in America's most important financial
region is now in charge of the IRS. That's change you can believe in!
- Bob
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