Geithner and the Bailout State
The future Treasury Secretary urged AIG not to disclose the details of its bailout.
10:31 AM, Jan 8, 2010 • By MATTHEW CONTINETTI
The swaps were worth much less than what the government paid the counterparties. But Geithner, then the New York Fed chairman, backed full payment anyway. From a Huffington Post story coauthored by Client Number 9:
Expect calls for Geithner's resignation to continue. But resist the temptation to view this burgeoning scandal--AIG is still on taxpayer life support, by the way--in isolation. Over the holidays, the unlikely duo of Jane Hamsher and Grover Norquist called on the Justice Department to investigate Rahm Emanuel's time on the board of Fannie Mae and Freddie Mac, the quasi-governmental housing giants who just got a blank check from the federal government and whose executives receive Goldman-Sachs-like bonuses. And only Mickey Kaus seems to know what's going on with the government's involvement in GM. The trickle of stories about cronyism and insider-ism could soon turn into a river of scandal for Democrats--especially if Republicans reclaim the House in November.
The Bailout State is likely to claim many victims. Will Geithner be the first?