Timothy Geitner - New Secy. of Treasury
As President of the New York Federal Reserve Bank, Geithner was an active partner with Paulson in the forced sale of Bear,Stearns to JP Morgan, as well as the failure to backstop Lehman causing their resultant fall into bankruptcy. In my opinion. LEH's bankruptcy was the main reason that the financial crisis accelerated globally in mid-September and spread through the world, causing breakdowns of the financial system and the destruction of trillions of dollars of wealth in the United States and the world. The consequences of the LEH bankruptcy contribute mightily to the expansion of an expected mild recession into a possible depression.
Thus, the man who said no to Dick Fuld and failed to backstop Lehman bears a burden and a large stain on his reputation. I believe that it was probably Paulson acting alone, but, if it was Geithner who shared and participated in this decision, he's got a lot of 'splainin to do, and I for one would rather see someone else in charge.
Thus, the man who said no to Dick Fuld and failed to backstop Lehman bears a burden and a large stain on his reputation. I believe that it was probably Paulson acting alone, but, if it was Geithner who shared and participated in this decision, he's got a lot of 'splainin to do, and I for one would rather see someone else in charge.
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regretfully agree.
November 21, 2008 7:19 PM | Reply | Permalink