Pressure Intensifies for Geithner to Leave
January 11, 2010
(LPAC)—”It’s Time for Tim to Go,” is the title of today’s New York Post article, which targets Treasury Secretary Tim Geithner’s outrageous conduct in the New York Fed-AIG case—the Fed’s demanding that AIG not disclose its billions of dollars in payments to banks at 100% of face value—and also argues that he’s committed a number of other financial crimes over the past 16 years.
The Post quotes Wall Street consultant Chris Whalen, who asserts that the NY Fed can’t [impede] “the disclosure of an SEC filer [such as AIG]” without violating the Securities and Exchange Act of 1934. “There is no exemption for well-meaning private officials of the Federal Reserve Bank… I think [Geithner] has violated the law. I think he needs to be held to account.“
At this point, the Post notes, “some believe that Geithner, while he’s receiving the support of President Obama, likely will be forced to step down in the next six months.” John Carney, of the Business Insider blog, agrees. “We would like to see Geithner go now,” he says, and then impotently adds: “but there’s little chance this will happen. The Obama administration cannot afford to show weakness.” It’s more likely he’ll go after the mid-term elections, when Democrats “will be looking for a fall guy.”
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