Geithner Goes On Profanity-Laced Tirade As Bank Regulators Push Back

Treasury Secretary Tim Geithner unleashed a profanity-laced tirade on bank regulators at a private meeting last Friday, according to a Wall Street Journal report this morning. Geithner was incensed - at one point using the phrase "enough is enough" the journal reported -- over bank regulators' resistance to the Obama administration's proposed changes to financial regulatory system.

Geithner's venting was witnessed by an all-star cast of regulators including, Federal Reserve chairman Ben Bernanke, Securities, Federal Deposit Insurance Corp. Chairman Sheila Bair
and Securities Exchange Commission Chairman Mary Schapiro.

The key issue was the role of the Federal Reserve in overseeing the financial system and its continued overhaul. Geithner and Bernanke both support keeping the Fed as the chief regulator; Bair and Schapiro argue that the U.S. economy should be monitored by a council of regulators.

Geithner was enraged, it seems, over a lack of consensus over the Fed's role. More from the WSJ:

"Neal Wolin, Treasury's deputy secretary, said Mr. Geithner told regulators 'they have the prerogative to express their views, but he wanted to make sure that, since everyone had agreed on the importance of achieving reform this year, everyone stayed focused on that goal.'

Government officials said Mr. Geithner had expected regulators to object to parts of the plan that threatened their power or authority, but Treasury officials appeared caught off guard at how much the criticism resonated with lawmakers."

Read the full story on Geithner's tirade at the Wall Street Journal:

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Comments

[Dark-Passenger]

We need to give the FED the boot. They are nothing but a banking cartel. The FED's concern is for the banks not the people.

[omegapoint]

Our oligarchs could teach the Russian oligarchs a thing or two about oligarchery. I say blame the briber more than the bribee. The bribee can be replaced.

[disabledjim]

why is bush's lakie obama's primary choice for the job

[igmond50]

Cuz in the context of business as usual Bush and Obama are more alike than not

[ReHuff]

the other news is, we're all more alike than not.

[ReyLoo]

Somebody's toes just got stepped on...fighting for his HUSTLE tooth and nail. merely saying "you know American Governmental Finance matters should be handled by the um....the government who are accoutable to um....the American People" Not a very radical suggestion...quite reasonable i might add. The current system seems to be set up and ran with the agenda to keep the American Nation (the People) under some never-ending debt status...to whom? the private feds...makes no sense.

[MinasTirith]

Completely concur.

We have to be in never ending debt status... Because we MUST CONSUME...

Needlessly consume, is the preferred method.

Don't you see? That's how people get RICH!

So they can consume MORE!

The whole economy is based on over spending your income by about 1/3... Even the homes we buy are roughly based on that ratio.

That way, people can make even MORE money by lending people money.

Each pig smacking at the trough of cash as it flows by... To the point where we stopped making most THINGS to make money, and started to make it out of the act of moving it around, bundling it, and actually selling money.

But, since money is just a figment of our imagination. (I mean, in the game Fallout, bottle caps are the coin of the realm), making money by selling and bundling money borders on ludicrous.

Yet, we are now able to 'work in more places' than ever before.

Can't you hear George Jetson now? 'Jane... stop this crazy thing!'.

[disabledjim]

very nice. neat prspective

[PresWatch]

"Enough is enough." Geithner's record proves that he believes enough is never enough.

[FHTB]

Yes, quite rich, isn't it?

[deanfv]

Doesn't matter... we are closer to "game over" anyway.
http://market-ticker.org/archives/1304-BLATANT-Monetization-Uncovered.html

Well now we know what happened: The Fed pretty clearly pre-arranged, either explicitly or by "suggestion", that the Primary Dealers take up the auction with the promise that The Fed would immediately monetize half the issue!

Folks, this is beyond bad - it is pernicious and outrageous conduct by The Federal Reserve in conspiracy with the Primary Dealers, both of which are now desperately trying to prop up the US Government Bond Market through subterfuge rather than just buying up the bond issue from Treasury when originally put to the market!

If you think the economy and credit markets are "on the mend" why would The Fed do something like this? It would not be necessary unless The Fed was told (by those very same Primary Dealers) that they were going to be unable or unwilling to take down any more Treasury Debt.

The United States HAS OFFICIALLY HIT THE TREASURY DEBT WALL and The Fed and Treasury are engaged in subterfuge and conspiracy in an attempt to hide this from the market.

There is no other explanation for what just happened.

When it sinks in to the market's consciousness - we had two failed Treasury Auctions last week, both 5 and 7 year, yet we intend to try to borrow ANOTHER $400 billion next quarter and nearly $100 billion this coming week - the consequences could be extremely severe.

[watchTVgetSTUPID]

I was also surprised by how well the 7 year auction went after the 5 year auction had so much public onsternation. China is moving toward shorter term Securities so I expected them to concentrateon the 5 year notes over the 7. Clearly China does not want to hold long term notes in order to avoid getting slammed by rising interest rates.

This is truely a bad sign. Next week auction is for longer term so there will be even less real suppoert than last week's. The only mitigating factor is the huge amount being auctioned last week may have skewed the numbers.

If this goes badly, it will trigger the rapid decline of the dollar. It could evn turn into a panic and 30% drop. The corresponding 30% rise inflation will surely crash the economy. ($2.50 gas will become $3.57).

[Scent]

So the billions they took are invested into buying lawmakers.

What else is new?

[aintnogod]

Jeez... only profanity laced dialogue? Where's my lariat. Let's string 'em up, fer goodness sakes.

[chevlikis]

that's cool how huff got photo from the private meeting. good sleuthing

[gsteinum]

you may not know it but the wall street journal is owned and operated by news corporation. they also operate faux noise. simply because the journal, who's credibility has come into question many times since rupert murdoch took it over, is obviously motivated by profit more than any sense of responsible journalism, doesn't make anything it prints factual. i thought hufpo had higher standards, but apparently it doesn't. also, the regulations proposed by mr. geithner and others in the current administration are vehemently opposed by newscorp and in particular mr. murdoch.

[pragmaticdallasite]

i thought it was the other way around

[HST]

There's a few things we can do to prevent another economic meltdown:

Regulation, regulation and more regulation.

[Sarah Moore]

Followed by:

Prosecution, prosecution, and more prosecution.

[Whitley2009]

Oh, Tim, just tell those G@#$M%, self-made S)&*$%^&*(#s to go f*$% themselves.

[robjh1]

He should have log since been relieved of his duties. He is ineffective. Same story different players.

"and we are not saved..."

[DragonflyChase]

everywhere we look we see spoiled brat RICH cheaters trying to stall and keep it going.

EVERY WHERE WE LOOK!

[SmootyBooty]

straight to jail with this crook...

[BushIsAWarCriminal]

Who? WHich crook?