Friday, July 22, 2011

This is Why Banksters Love Geithner

When current Treasury Secretary Tim Geithner was president of the New York Fed, he issued a waiver that allowed former Goldman Sachs-exec and now New York Federal Reserve president William Dudley (the then-executive vice president of the NY Fed bank's markets group) to work on the outrageous bailout of American International Group even though he held shares in the company, according to a congressional audit report released Thursday.

The waiver also allowed Dudley to work on issues involving General Electric Co., another company that received U.S. assistance, even though he also held shares in that company.

All of Dudley's AIG and GE shares have since been sold; the New York Fed didn't disclose additional information on the holdings.

Dudley's waiver was granted Sept. 19, 2008, three days after the Federal Reserve Board authorized the New York Fed to help AIG. Other employees were also granted waivers during the crisis, although some were required to sell their holdings, the report found.


  1. Throughout the current bank meltdown episode, my only question has been: When are any of these people going to go to jail? I know they would probably go to a swanky jail with daily back-rubs, but at least they wouldn't be able to screw anything else up.

  2. Jail? This is the new norm for government.

  3. Wow. What a scoop. I wonder if anyone else is covering this report.