While the Federal Reserve Board of Governors is a federal agency, the 12 regional Federal Reserve Banks, including the New York Fed, are actually owned by the commercial banks in their region. The cronyism at the New York Fed is structurally baked in the cake. The former FDIC Chair, Sheila Bair, wrote in her book, Bull by the Horns, that “…virtually no meaningful supervisory measures had been taken against the bank by either the OCC or the NY Fed…Instead, the OCC and the NY Fed stood by as that sick bank continued to pay major dividends and pretended that it was healthy.” (Geithner denied the report.) In Neil Barofsky’s Bailout, Geithner is portrayed as heartless in his assessment of what the Home Affordable Modification Program (HAMP) was created to do, viewing it as a way to “foam the runways” for the banks, slowing down the foreclosure stream so the banks could stay afloat, with no sincere intention of helping struggling families stay in their homes. In Ron Suskind’s book, Confidence Men, Geithner is said to have ignored a direct order from President Obama to wind down Citigroup. The Non Profit Organization, Code Pink, Appeared on Multiple Occasions Holding Protest Signs Behind Tim Geithner as he Appeared Before Congress to Explain the Massive Bailouts of the Banks Treasury Secretary where his advocacy for Citigroup’s survival played a far more important role than he could have as its CEO. Geithner turned down the job offer and went on to become U.S. In an article by Jo Becker and Gretchen Morgenson, published by the New York Times on April 26, 2009, Geithner admits that Sandy Weill spoke with him about becoming Citigroup’s CEO, raising the question as to whether Geithner’s many trips to Citigroup were actually job auditions. A few months later, on May 17, 2007, Geithner joined Weill for breakfast at the expensive Four Seasons. Take Your Daughters and Sons to Work Day was April 26 that year, not the day of this luncheon. Geithner’s appointment calendar shows his daughter sharing his chauffeured car to work with her father and then joining him at lunch with Sandy Weill. On January 25, 2007, Geithner not only hosted Sandy Weill, the former Chairman and CEO of Citigroup and one of its largest shareholders, to lunch at the New York Fed, but Geithner brought his teenage daughter to the lunch. history – Geithner had been hobnobbing with Citigroup executives, holding 29 breakfasts, lunches, dinners and other meetings. Treasury Secretary on January 26, 2009, just six days after Obama took office.Īccording to Geithner’s appointment calendar at the New York Fed, in the leadup to Citigroup’s massive bailout – the largest in U.S. Geithner was quickly confirmed and sworn in as U.S. Geithner was amply rewarded by the incoming Obama administration. That information comes from the congressionally-mandated audit of the Fed by the Government Accountability Office. When Tim Geithner was President of the New York Fed during the 2007 to 2009 financial crisis, it secretly sluiced the bulk of $16.1 trillion in cumulative loans to trading houses on Wall Street, including $1.56 trillion to the London trading desks of Citigroup, Goldman Sachs, Morgan Stanley and Merrill Lynch. Logan is not the first to see her resume enhanced after funneling trillions of dollars to Wall Street trading houses in below-market-rate loans. (See our related report The Fed Appears to Have Violated the Dodd-Frank Act in the Second Quarter of 2020, Giving $455 Billion in Loans to Citigroup.) Logan had worked at the New York Fed since graduating college in 1999. Prior to joining the Dallas Fed, Logan was the Manager of the System Open Market Account (SOMA) at the New York Fed, effectively the Fed’s trading floor.Īs part of her job, Logan oversaw the trillions of dollars that were electronically created at the New York Fed to bail out Wall Street trading houses in the fall of 2019 and through the middle of 2020. That’s $40,700 more than the salary of the President of the United States. On August 22, Lorie Logan began her big promotion as President of the Dallas Fed, a position that paid $440,700 at the end of 2020. Lorie Logan, Former Head of Trading at the New York Fed Now Dallas Fed Presidentīailing out the Wall Street megabanks that are serially fined and hit with felony counts appears to be catching on as a major career advancement strategy at the New York Fed.
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