White House Stands Behind Geithner, Says Tim Was Not Involved In AIG Email Fiasco

Tyler Durden's picture

It appears Geithner will not be fired after all (for now). From Bloomberg:

Treasury Secretary Timothy Geithner “was not involved” in decisions by the Federal Reserve Bank of New York when it told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks in 2008, White House press secretary Robert Gibbs said.

Geithner, who was head of the New York Fed at the time, “wasn’t party to the decision,” Gibbs said at a White House briefing. Asked if President Barack Obama continues to have confidence in Geithner, Gibbs said, “Of course.”

Republicans and Democrats have called for Geithner to testify about the New York Fed’s effort to limit disclosures by AIG during the height of the financial crisis. Geithner was recused from working on issues involving specific companies at the time because he had been named by Obama as his choice for Treasury secretary, a spokeswoman said yesterday.

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fuu's picture

So if the head of the NY Fed was not involved with this at all who was? And is not the head of an organization ultimately responsible for what goes on?

 

Nice to know that no one is ever responsible for their actions.

i.knoknot's picture

methinks they protest too loudly... i don't think this one is over.

then consider that yesterday Mr. Obama took full personal responsibility for a single bomb carrying passenger, out of millions of travelers per day... oh yeah, this enabled his fix, which is to x-ray us (and our wives). amazing how many 'full-body scanners are conveniently available in the wings to suddenly be deployed in all of these airports... like they didn't see this coming months ago.

"scare them then herd them"

Careless Whisper's picture

I think the exact quote from the WH spokesman was:

"Secretary Geithner was not involved in any of these emails," Gibbs said.

Typical non-denial denial.

Rainman's picture

funeee....plausible denial is always passive or aggressive. Never both.

MikeNYC's picture

"SECRETARY Geithner" was not involved.

As opposed to "then NY Fed chief Geithner," who was involved, deeply.

Anonymous's picture

this is excellent - you interpret newspeak
excellently....

Astute Investor's picture

It comes down to what is the definition of "involved"....

Heavy's picture

I thought the idea was that a treasury secretary could allow faked reporting under the law for security reasons, but a (private industry?) Fed. head, can not?

BorisTheBlade's picture

then consider that yesterday Mr. Obama took full personal responsibility for a single bomb carrying passenger, out of millions of travelers per day... oh yeah, this enabled his fix, which is to x-ray us (and our wives). amazing how many 'full-body scanners are conveniently available in the wings to suddenly be deployed in all of these airports... like they didn't see this coming months ago.

that can be even more bizzare than you might think: http://www.youtube.com/watch?v=KiN3rVXShAg

TheGoodDoctor's picture

That's quality leadership. I mean no wonder he is the Treasury Secretary!

John Self's picture

Fortunately, the administration hasn't gotten around to hiring any Geithner underlings at Treasury -- so this time around, there's no one else for him not to be responsible for. 

TraderMark's picture

So if not Tim who has the authority to give away tens of billions of taxpayer money.

Let me guess it was Chuck in accounting.

Or Stewart in legal.

 

Yep that's the ticket.

It can only be Hank or Ben and since Hank is "independent" of the Fed and of course RECUSED from any dealings with Goldman it must be Time's Man of the Year.

 

No wait, it was Chuck.

Anonymous's picture

Obama said "the buck stops here"

docj's picture

More comedy gold from Gibbsy.

Seriously though, which is worse?  That he "was a party" to this cover-up (in which case they're lying their asses off - another day another whopper of a lie, and all that)?  Or that he wasn't and were therefore oblivious to what was going on under his nose?

Assetman's picture

If the buck doesn't stop with Geithner at the NY Fed when he was, supposedly, in charge... why should the buck stop with him at the Treasury?

 

Sancho Ponzi's picture

By definition, the buck starts at the Treasury;)

Assetman's picture

Not in the electronic world... digits are created by the Fed out of nitrogen, oxygen, carbon dioxide... and traces of many other elements. 

Some call that "thin air".

Goldtoothchimp09's picture

So Treasury discovered the "God Particle" before CERN?!

Ned Zeppelin's picture

+1 now where is that darn Higgs particle (had it here a nanosecond ago)

hidingfromhelis's picture

Aha!  Now I get it; the Large Hadron Collider is actually the mother of all printing presses!

john_connor's picture

The O team and associated members are always right and are immune from anything.

Who cares anyway?  This whole thing is a sideshow.  The #1 biggest joke right now is Fannie and Freddie. 

trav7777's picture

So the emails from TGeither@ustreas.gov were not from him?

Anonymous's picture

that's correct....tgeither@ustreas.gov is actually
tonya geither who is often confused with tgeithner@ustreas.gov all the time....common mistake
and she should be fired and prosecuted before
the weekend is out....sentencing will occur
monday and the whole forgotten about by tuesday...

Gimp's picture

Hope, Change ,transparency ..code words for the same old B.S you can believe in.

waterdog's picture

Who belongs to the handwriting on the documents provided by Darrell Issa in yesterday's post on this subject?

 

 

Anonymous's picture

Compare writing to his signature on currency. More samples can be found on-line.

Optimystic's picture

Right.  There can not be that many people with that authority.  So, who is it?

Optimystic's picture

A whistle blower inside the Fed (or maybe PwC).........tell us who made those edits.  Any brave souls out there?

Anonymous's picture

Geithner was not involved. It was Bernake. Just as Bernake threathened Mr. Lewis of BofA to buy Merriel. In that deal Bernake insisted on leaving the spaces blank to in the contract to be filled in later.

What most people don't get is that it was really Merril buyinging BofA. It's obvious by how much they overpaid. Where every other deal was pennies on the dollar: Investment bank gobbles commerical bank. But the one deal that bucks the trend, is the Merrill/ BofA deal.

All in all, makes the Club of Rome theory look very realistic. The fact that a number of Investment banks came out on top at the expense of commercial banks and a couple investment banks that were non club memebers?

Oso's picture

either he was involved, or he is a fucking moron and should never have been appointed HEAD OF THE NY FED.

 

fuck this, fuck the government, FUCK GEITHNER

Steak's picture

My sentiments exactly...when this (journalistic) smoking gun can be waved off, i mean it was in the guy's handwriting for cripes sake...then its clear our government and elected officials are working against us, not for us

Missing_Link's picture

THIS IS SPARTAAAAAAAAAAAAAAAAAA!!!!!!!!!!!!!!!!!!!!!!!!!!

John Self's picture

You could work that line nicely into the end of Ministry's Stigmata.

Anonymous's picture

We weren't corrupt; We were incompetent! Much better.

chumbawamba's picture

Get a rope.

I am Chumbawamba.

Miles Kendig's picture

Use an extension cord....  At least we would find out what kind of soprano he really is and how he dances first.

Steak's picture

Lets just forget that we're in a keptocracy for a day and vibe to some K'naan...how does that sound?

http://www.youtube.com/watch?v=pIrFMtVkw6w

Cindy_Dies_In_The_End's picture

The Administration has waved its magic fairy wand people, so this must be so.

 

Move along. Bibbity Bobbity Boo.

Anonymous's picture

These aren't the droids you're looking for.

DaveyJones's picture

wow...what an analogy. I mean Luke, WAS in love with his sister, and this whole thing is nothing more than an incestuous mess...

when does the death star explode? 

Mad Max's picture

Gibbs is less credible than Baghdad Bob these days.

Clearly our republic needs, and is getting, more bananas.

Internet Tough Guy's picture

He's an errand boy, sent by grocery clerks, to collect a bill.

Anonymous's picture

The question then is "who was behind the email" and was he an underling and therefore reporting to Timmy boy??

Since when is it the case these "management types" are not responsible for the activites of their underlings.

Whether Timmy was involved, his agency was and certianly the person that did this was acting on someone's orders and directives.

I want an ivestigation on the Fed and the AIG mess.

The Rock's picture

I want an investigation on the Fed and the AIG mess.

Move along, 'cause you're not going to get it.  Sweep it under the rug with all the other "non-investigations" (e.g. 9/11, Iraqi tortures, Israel's shenanigans)...