Geithner Takes On Regulators In Financial Overhaul

nytimes.com:

WASHINGTON -- In what has become a routine spectacle, financial regulators went to Congress this week and raised objections to major portions of President Obama's plan to overhaul financial industry rules.

Read the whole story: nytimes.com

Comments

[Iscarius]

Giving the Fed more power to regulate the very banks to which it gives billions and trillions of dollars makes the phrase "Putting the fox in charge of the henhouse" even seen inadequate.

[Carolab]

What a weak article. It gets into NONE of the hazards of having the central bank aka PRIVATELY OWNED FED in complete charge of "consumer protection" when it was the FED itself which created this crisis.

Of course this is just one step in jacking up the powers of the international central banks and bringing them all under "regulation" and "supervision" by the Financial Stability Board of the Bank for International Settlements.

[Carolab]

Remember the Dallas Fed's Fisher saying that "The Fed will not become the handmaiden of Treasury"?

He was ly-ing (The Fed already has), and now there is proof.

Mad props to both Zerohedge and Chris Martenson for noticing this

The upshot: The Fed bought nearly half of LAST WEEK'S 7 year Treasury Issuance TODAY.

Huh? Remember, after the 5 year auction that went badly (and which I wrote about) the 7yr auction went "well." Rick Santelli (and a lot of other people) agreed - demand was strong. That made no sense to me at the time, coming one day after a near-failure in the 5 year.

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 what the Primary Dealer's took!

This is beyond bad - it is pernicious and outrageous conduct by The Federal Reserve in con-spiracy 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!

The US HAS OFFICIALLY HIT THE TREASURY DEBT WALL and The Fed and Treasury are engaged in subterfuge and con-spiracy in an attempt to hide this from the market.

http://market-ticker.org/archives/1304-BLATANT-Monetization-Uncovered.html

[Carolab]

Does everybody GET this????

The FED is giving OUR money (our DEBT) to the Primary Dealers (the banks that OWN the FED) to buy the Treasuries (our DEBT)!!!!

[PhilipTaylor]

Without the Other Government of the USA, GOLDMAN and WALL STREET would GO DOWN!

THE OTHER SECRET GOVERNMENT WITHIN THE UNITED STATES:

********** ********** *****THE FED******* ********** ********** ****

Gave almost $20 TRILLION to BANKSTERS in FRESHLY PRINTED NEW BILLS

ADDING TO THE DEBT OF ALL AMERICANS AND AMERICA!

Audit the FED Reserve System it will make YOUR EYES P0P-0UT!

We Americans are being R0BBED!

[PhilipTaylor]

It's Not to late to fire Corrupt People+Start Fact Finding+clean up this Mess Quickly!

America Loves the Moral High Ground+can face HARD FACTS!

Is OBAMA AFRAID to Audit FED and fire WSt CEOs because They:

1. Hide the $SIZE of the Problem from Americans thinking we are TOO WEAK to Accept it!
2. Hide DEPTH of Criminal Activity by Executive Employees!
3. Hide WS Banks CALCULATED CORRUPTION from the World!
4. Hide the Moral Crisis of a FEW Hundred People, Elites who buy Votes in Congress with ill-gotten pirated Money from Victims on Main Street+World
5. Track to the doors of White House+Congress!
6. Display the Administration's COVER-UP!

But Obama Administration is Violating OUR LAWS:

1. Prompt Corrective Action Laws
2. Our Ability Already exists to Take Them Through Bankruptcy
3. Misrepresentation of Products and Services
4. "Manufactured Insider Trading" betting that Manufactured SURE FAIL Mortgage Derivatives will FAIL on a massive scale!
5. A FED Reserve System that has Printed DEBT that has taken America from the #1 Creditor Nation to the #1 Debtor Nation in RECORD TIME!

See William K. Black on Bill Moyers: GS+Elites running FED!
http://www.pbs.org/moyers/journal/04032009/watch.html

See Brooksly Borne:
http://www.stanfordalumni.org/news/magazine/2009/marapr/features/born.html

See Welcome to WSt Jungle: Case for indicting executive leadership of GS:
http://futurenewstoday.blogspot.com/2009/03/welcome-to-wall-st-jungle.html

[watchTVgetSTUPID]

What is the justification for censoring the idea that Geithner is a Macheavellen Tyrant? It describes exactly his action and attitude.

[PhilipTaylor]

Agree!

Watched him stupefy and muddle through another L1E-fest interview this weekend followed by the ramblings of the totally unbelievable Greenscam! What a team George put together!

[dukeitout]

The current system of regulations is probably acceptable. A new system may not overcome the problems associated with the meltdown. If the regulations of the current system had been enforced, I suspect we wouldn't be in our mess. Also, a little funding to provide sufficient enforcers would help.

[watchTVgetSTUPID]

Geithner needs to have his powerer taken away, not expanded. He has decisively represented the Wall Street insider bankers at everyone else's expense. Tim is largely why the recession has gotten worse in spite of huge tax give-aways to AIG, Goldman Sachs, and the like. Even after getting untold billions the Banks are refusing to cut a meaningful break for the home owners. Tim and Bernanke are why the dollar is about to nose dive with severe inflation/economic calamity to follow.

Put Main Street Bankers in charge who did not create the credit freeze

[Haditup2here]

Though at times corrupt, it is time to turn the CIA and FBI loose on these investment firms to perform and undercover investigation in addition to some forensic accountants. I have had enough when it comes to reading about credit swaps, shady derivatives, loosening the Mark-to-Market standards, and the power of shareholders versus the executive boards and how all of this s**t is legal.

And as much as I like to empathize with Geithner, if he would have had more of a backbone when developing TAP, Toxic Asset Plan (basically TARP-lite), we wouldn't be in the mudslide that we are currently in now where we are ALL (every taxpayer) shareholders of AIG, BofA, and citigroup with no say-on-pay or shareholding benefits. And if that is not bad enough, how do you like paying more for a financial product that what it is probably worth courtesy of the TRANSPARENCY that the Fed is obligated to give to those on Wall Street selling securities? Perhaps if Geithner lead by example, he would get more respect from the other regulating agencies. Until then, they are all mindless dwarfs to me.

[Lilith33]

good luck with that since AIG is a CIA front company stated in china.

[Carolab]

Leave it to you to say it like it is, always. Fanned again.

[blueskybigstar]

Yes, the CIA and probably parts of the FBI that are the problem.

[slowhand0728]

Am starting to feel bad for lil Timmy G. He really reminds me of that kid in school that got teased a lot and sat alone in the playground.

[synic]

"Takes On"? Don't you me "Seeks To Maintain the Status Quo But Is Putting On Kabuki Play While Regulators Sit In Corner Giggling Maniacally At the Farce"?

The catch phrase from this economic team all along has been: "Changes? We don't need no steenkin' changes."

[BabblingBrooks]

That is an absolutely STUPID way to display leadership.

[sonofsamphm1c]

It could have been worse. Just before they snapped the photo a prescient aide pulled down the "Mission Accomplished" banner.

The thinking on the need for new regulation of one appointed by Bush:

"It’s a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation….We have a safe and sound banking system in the United States of America. ..." Bush appointee, 07/ 2008

No need for additional regulation versus Geithner:

"It is important that we move quickly to adapt the regulatory system to address the vulnerabilities exposed by this financial crisis. ...: - Tim Geithner, 06/2008

[PaiaGirl]

Isn't this kinda like putting the fox to guard the hen house?

[watchTVgetSTUPID]

The hen house has already been consumed. The Fox now wants to be in charge of all the big companies on Wall Street and Main Street.

[JonathanStuartLeibowitz]

THE most urgent measure in the fight against corporate influence is campaign finance reform. This petition to the Supreme Court asks for a constitutional amendment.

http://www.petitiononline.com/CFC2009/petition.html

After signing, spread it. Time to reclaim your democracy.

[joebhed]

Much ado about nothing, really.
Either way, the watchdog will be doing nothing more or less than seeing that the laws are being properly enforced.
Either way.
Mo matter which house they are in, and no matter which person or persons are supposed to be representing consumers.

What Obama OUGHT to be proposing are more consumer-protection LAWS.
And get away from this high-profile posturing where they run around shouting "We're doing something, we're doing something!".
And actually do something.

Make it illegal to charge more for a credit-card-loan than a personal loan, since a credit-card-loan IS a personal loan.
Whatever reader thinks that there is ANY greater protection coming their way from this legislative re-arranging of the chairs needs to study the proposal more clearly.
There's NOTHING in here for the Restovus.

The administration's actual proposal for REGULATING the financial services industry goes with the FED.
The private bankers at the Fed.
Yeah, that's change we can believe in.

[FoonTheElder]

Seeing that the laws will be enforced? I don't forsee a drastic change like that occurring in the near future. After all, Wall Street and big corporations paid for the government, It appears that they are continuing their massive return on investment.

[Carolab]

There are already protection laws on the books in each and every state.

Bush changed it, via his OCC head, so that any "national" corporation cannot be subject to these laws!

That's why the anti-fraud protection wasn't enforced when all of the bad loans were written in the first place.

And so NOW you want to turn the OCC over to the Fed? So that the state laws have NO effect vis a vis Federal "protection"?

WHAT??

[blueskybigstar]

Geithner is more responsible than they are. How dare he?

[blueskybigstar]

This is an act. All of those agencies were depowered by Reagan and those that came after him when they deregulated. FDR helped create those agencies. He did a fine job. They were not able to regulate and oversee because the way the system was rigged they had no power. Geithner is the fox watching the hen house. DON'T GIVE HIM A DARN THING.