Thursday, May 7, 2009

Geithner behind banking fraud cover-up?

Sweden did it in the early 90s with respect to its entire banking industry. It is standard procedure for the US government to take over a failing bank. So why has the Obama Administration refused to temporarily nationalize America's woefully mismanaged major banks?

It seems Treasury Secretary Timothy Geithner -- who served as one of the top US regulators throughout the rise of the sub-prime debacle -- did not think nationalization a good idea.
Why not?

William K. Black, a professor of economics and law with the University of Missouri who led investigations into the S&L crisis of the 1980s, has an interesting theory. He told PBS’ Bill Moyers Journal:

Black: [They] don't want to change the bankers, because if we do, if we put honest people in, who didn't cause the problem, their first job would be to find the scope of the problem. And that would destroy the cover up....



Geithner is ... covering up. Just like Paulson did before him....



These are all people who have failed. Paulson failed, Geithner failed. They were all promoted because they failed....



Until you get the facts, it's harder to blow all this up. And, of course, the entire strategy is to keep people from getting the facts....



Moyers: Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover up to keep us from knowing what went wrong?


Black: Absolutely....



They're deliberately leaving in place the people that caused the problem, because they don't want the facts. And this is not new. The Reagan Administration's central priority, at all times, during the Savings and Loan crisis, was covering up the losses.

In other words, the foxes are (still) guarding the hens.

Here's the video of the interview:

Hat-tip: Mercola

2 comments:

  1. From: Dr. Ulysses S. Crockett, Jr.: Treasury Secreary Timothy Geithner must be prosecuted for violations of securities laws, specifically SEC Rule 10-b-5 which prohibits insider information in the trading of securities. Geitehner must be fired and recuse himself from taxpayer bailout proceedings for withholding bailout fund expenditure information, conflict of economic interest, fraud in forcing Bank America Ken Lewis to "buy" Merril-Lynch under direction of private citizen securities violator Benjamin Shalom Bernanke who should also be prosecutre for securities fraud. See, Ulysses s. Crockett, Jr., 'Federal Taxation of Interest On Indebtedness In Corporate Acquisions', 10 Indiana Law Review 419 (1976); http://blogigo.com,ulyssesecojurist.

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  2. AnonymousMay 19, 2009

    The whole system is corrupt, the Fed is a private organization run by and profited from the banks. Geitner is a former NY Fed, of course he will help out the boys.

    How much insider trading and market manipulation really goes on within this group? The aim appears not to achieve wealth, but to pursue obscene illgotten wealth.

    The only issue that confuses me is why Americans in response aren't out rioting and looking for heads to mount on pikes.

    Gravel Rash

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