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Crumbling Timothy Geithner
November 17, 2009 - Mike Maneval
A scathing report from the special inspector general for the Troubled Asset Relief Program lays blame for overpaying bailed-out financial institutions at the doorstep of Timothy Geithner, the U.S. Secretary of the Treasury who, at the time, directed the Federal Reserve Bank of New York.
Inspector General Neil Barofsky's report specifically faults Geithner for his lack of transparency and for weak negotiation of terms. Eamon Javers of Politico's Web site explains the reserve bank's role in negotiating led tax dollars to re-inflate deteriorated investments well above market value at the time.
In the words of Huffington Post's Paul Abrams, Geithner has "failed to stand up to Wall Street interests when they are inimical to sustained stability." Danielle Brien, director of the Government Oversight Project, told Politico the reserve bank's actions, under Geithner's leadership, seemed "designed to funnel" billions in tax dollars into a handful of privileged players.
Andrew Clark may sum it up best in his report for Britain's Guardian: The plan orchestrated by Geithner and the reserve bank, "in the eyes of both Democratic and Republican critics, was a dismal saga of government officials crumbling under pressure from Wall Street."
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