In one of my earlier posts, I had talked about how the lenders to AIG benefitted without suffering any haircut for their imprudent decisions. Now e-mails have surfaced last week that showed he forced insurance giant AIG to keep quiet about tens of billions of dollars in payments it made to several Wall Street banks -- payment that represented full payouts funded by taxpayer cash that the banks otherwise wouldn't have received.
In a recent post in New York Post, Joshua Rosner (a managing director at Graham Fisher & Co) opined, "We've seen an ongoing effort by Tim Geithner at the Federal Reserve and Treasury to do the public's work out of the public's view in ways that benefit the banking interest ahead of the public's. "It was under Tim's direction that we were given stress tests that were less than transparent and less than credible," he added.
To this what I can add is that, that's how you insure your future. No surprises really that the financial world in the US is a big mess. Only problem is, its size means that a crisis pulls everybody else to the vortex. The US financial wiz kids (or thugs running loose) have ensured that the world is vastly different and difficult now.