Tim Geithner's NY Fed Lied on AIG, Chris Dodd to Swoop in After Geithner is Fired?
Careful what you wish for, kids. Geithner should hang for this but who would take his place at the Treasury? I'm hearing Chris Dodd might be free.
(h/t Caleb for the Bloomie link)
The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.
AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.
I imagine Geithner is going to have some 'splainin to do.
Moving on, once we fire his ass for being a cheat and a liar, will Dodd come in and run the Treasury from there? Oh great.
Roll Call speculates that Sen. Christopher Dodd (D-CT) may not be retiring after all -- he may trade his office in the Senate's Russell Building for one in the Treasury. Could he replace Tim Geithner as Treasury Secretary? It's not beyond the realm of possibility, but I doubt it.
Roll Call says:For instance, several Democratic Senate aides noted that Treasury Secretary Timothy Geithner is an extremely unpopular figure in the Senate. Geithner has also taken the brunt of the criticism for the administration's handling of the economy and, these sources speculated, if the country's financial picture does not brighten before Election Day, he could be the first secretary to leave the administration.
Although Dodd would appear to be well-situated to take control of Treasury if the position were to open, it may not be smooth sailing for his nomination.
I have a few thoughts about this. The
conspiracy theoristpragmatist in me wonders if the Obama administration promised Dodd a prominent position -- even if it isn't Treasury Secretary -- in order to secure his promise not to seek re-election. Dodd's prospects of winning in November were relatively dim, and the Obama administration knows that it can't lose any Senate seats if it wants to push through its ambitious agenda in the second half of its term. Powerful Senators tend not to be meek or humble, so I find it surprising that Dodd wouldn't want to go down without a fight, unless he had some other incentive to throw in the towel early.
Holy fuck, really though, did you guys catch that? THE NEW YORK FED INTENTIONALLY OBSCURED THE DETAILS OF THE AIG SWAP AGREEMENTS.
Isn't that, oh I don't know, totally fucking illegal?
(WC Varones is also on this. As everyone should be. Like flies to shit, literally, where Tim Geithner and the NY Fed are the shit and we, the financial prognosticators of doom, are your friendly flies.)