Geithner: No Double Standard For Banks

In an exclusive interview with ABC News anchor Charles Gibson, Treasury Secretary Timothy Geithner said the administration holds bailout beneficiaries in the financial industry to the same standard it holds their counterparts in the auto industry.

Gibson pointed out that the president has asked the auto industry to do very specific things to get more money from the government -- such as replace GM head Richard Wagoner -- while the financial industry has been given more for less. Gibson asked if the administration had a double standard.

"We don't. Absolutely not," said Geithner, who added there's been "dramatic restructuring across the financial system. "There's accountability where we need to, so the taxpayers' interests are protected. That basic standard and basic objective is the same across everything we're doing to help get recovery back on track."

Geithner also characterized as "unfair" comments made by TARP watchdog Elizabeth Warren that the Treasury Department had not been cooperative with efforts to oversee the bailout program.

"We've put in place very strong reforms to make sure there is much more transparency and accountability across all these programs," Geithner said.

In her testimony, Warren complained that her oversight panel did "not seem to be a priority for the Treasury Department."

Geithner said his department is making efforts to be transparent.

"In my first weeks in office, we committed to make sure we put the specific terms of all these forms of assistance on to the Web site," Geithner said. "We made it clear that any assistance we provided banks in terms of capital going forward would require that banks commit to use those resources to expand their lending capacity, to report on what they're actually doing with lending."

Geithner added, "You know, financial crises are just deeply unfair."

Comments

[IntellectuallyHonest]

I wonder what else he lies about.

[bichn]

Geithner is a condescending pr!ck who has been in bed with Wall Street for too long. He needs to go.

[figuringitout]

I would take Elizabeth Warren's word over Timothy Geithner's any seven days of the week. She has been talking straight for far too long, and has what he does not....act­ual credibility. Which is also something he does not seem to be "earning" as we go "forward". Which boomerangs right back to Obama and Emanuel. And this from "figuringitout", a "supporter" of theirs.

[MichiganAccomplished]

Why is is that the Wall St. bonuses must be honored because the employees had contracts and yet the union workers are ordered to restructure their legal contracts?

[StephenBarry]

Bravo. Very well said.

[Sundialsvc4]

Every single day I hear it again: "this is unfair, but this is just the way it is." "This is an economic downturn. All those rich greedy people..."

Stuff the stereotypes. We don't believe it. In fact, we are just as intelligent as you are. And since we are not beholden to the interests of a few hundred utterly-corrupt executives (who, by the way, have thrown their immensely-big institutions straight into the sewer of supreme folly...), we see it much more clearly than you.

This is: a swindle. This is: securities fraud. AND, this is "securities fraud" that was made possible by the United States Congress. Laws were removed to make it possible, and other laws were passed to make interdiction of the crimes impossible.

"This isn't insurance. This isn't gambling."

Right-t-t-­t-t...

So let's cut to the quick: there are a half-dozen huge banks that are INSOLVENT, at least on paper (which is where it matters). "Do thy duty."

There are also credit-reporting agencies that are accessories to a crime.

The people of the United States, =and= the people of the international community, all depend upon these institutions literally for their lives, let alone for their aspirations of bettering themselves. These are crimes, and high crimes, against more than 305 million people within our borders alone. They must be treated as such.

This is not "normal." CRIME is not "unfortuna­te."

[figuringitout]

Thank you....kee­p it up.

[CharlesMac]

Geithner added, "You know, financial crises are just deeply unfair."

That isn't good enough, Mr Secretary.

Financial crises are eminently fair. They always decimate the perpetrators.

Unless an oligarch like you gives his cronies our money as a reward. That is the only part which is unfair.

[rsprags]

Love Geitner he is doing a geat job; One day all of you will thank him for his service. The President have to make TOUGH decisions and you all cannot have it both ways. For months over 60% of Americans did not want the congress to give auto any bailout money. The President is going to assist GM to realign and Chysler will hook up with Fiat (which they were already in talks with them). Wagner gave up the position to save the company because he had gotten all the concetions possible from bond holders and labor that he could get to save the company. GM and Chrysler announcement is how business is handled in the corporate world. Even the govenor admits that this is a great plan and that Wagnor gave it up for the cause! The banks know that President O. is serious and this was a message to THEM AS WELL.

[blueskybigstar]

What about the banks? I have no problem with how Obama is dealing with the car companies, but Geithner seems incapable of doing the same with the banks. It more than appears that Giethner has too much of an incestuous relationship with the financial companies for him to be entrusted with the responsibility of bringing them under control.

[pthesmith]

This is a stupid arguement. it's like comparing apples and oranges. banking system... automotive industry. Two different animals! Are we so simple in our mindsets that supposed "journalists" are praised for pointing out non-existent double standards???

[blueskybigstar]

Financial companies caused the whole mess. They have bloated to 20% of the economy and they don't even make anything and only exploit the work of others.

[bobwalters]

Hockey puck Part 2. (Completing the thoughts started in Part 1) Were there no preferential treatment of Wall Street thieves going on, 'splain to me how come it is the entire economy, EXCEPT the Wall Street usurers and banksters, is taking a very short haircut? They're too crucial to the overall economy, you say? Hockey puck! There are hundreds, if not thousands of local and regional banks and credit unions throughout the country that are sound financial institutions and are NOT begging for bailout money. They've been supporting the REAL economy for decades -- not getting obscenely rich, but doing well, and doing what's needed for their communities to prosper. But the too-big-to-fail hucksters, con-artists and thieves in the financial snake-pit have harmed these regional and local institutions by choking off interbank credit needed to keep them functioning. 'Cuz they just don't generate the level of profits the usurers have "come to expect".

[somsoc]

"Treasury Secretary Timothy Geithner said the administration holds bailout beneficiaries in the financial industry to the same standard it holds their counterparts in the auto industry." WHAT A LOAD OF BULL. If this were true UAW members would be working for $1,000 per hour and have benefits like golden parachutes, fully paid AAA medical, multi-million dollar life insurance policies, and 4 weeks paid vacations each year. GEITHNER IS FULL OF SH**T.

[JimR]

Apples and oranges. CEOs will always make far more than the workers. What planet do you live on?

[somsoc]

Study some economics sonny.

[WinterParkMom]

No mr. geithner, the two crises are exactly the same:
case: Auto industry knew that oil prices were going to become a problem 10 years ago but still lobbied for and received lax emissions standards, lax fuel efficiency standards so they could keep pumping out gas guzzlers which they knew would become a problem because of fuel prices. But they made billions.

case: Banking industry knew that they wanted more money and the only way to get it was to play russian roulette with investments not fully understood, knew they had to get bigger and have more market share and most of all less regulation. So they lobbied and got mccain and gramm to deregulate and remove antitrust laws so they could make more and more money. They went on to make trillions only to lose it all

It is disingenuous for anyone to say that the 2 situations are not the same, and what has been done to Waggoner was right and needs to be done to Lewis, Pandit and the others.

[Space Walker]

You have a guy that's in wall street pockets over looking wall street, only in America could such foolishness occur without public outcry.

[mdzend]

if Geithner had come from the auto industry - instead of Wall St. - then it would be the Wall St. honchos being canned.Pre­tty obvious.
Still burns that he's a tax cheat.

[MontereyPurple]

Agreed. Let's get rid of this guy!

[abigail1]

I am not saying there wasn't a double standard, but Wagoner was terrible and had been for years and years and years and I am glad he's out.

[JimR]

Agree. He had to go.

[Dunderslapoldmen]

Gotta go...going to happy hour and try to forget this mess...lat­er