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Did Tim Geithner Leak Every Fed Announcement To The Banks?

Tyler Durden's picture




 

On August 17, 2007, the Fed's Board of Governors announced a key change to primary credit lending terms, whereby the discount rate was cut by 50 bp — to 5.75% from 6.25% — and the term of loans was extended from overnight to up to thirty days. This reduced the spread of the primary credit rate over the fed funds rate from 100 basis points to 50 basis points. News of the emergency measure was supposed to be kept secret from market participants as it was substantially market moving. It wasn't. And just when we thought our opinion of the outgoing Treasury Secretary and former NY Fed head Tim Geithner, whose TurboTax incompetence is now legendary, couldn't get lower, it got lower. Much lower.

From the August 16, 2007 transcript (page 13 of 37) of the conference call preceding this announcement.

MR. LACKER. If I could just follow up on that, Mr. Chairman.

 

CHAIRMAN BERNANKE. Yes, go ahead.

 

MR. LACKER. Vice Chairman Geithner, did you say that [the banks] are unaware of what we’re considering or what we might be doing with the discount rate?

 

VICE CHAIRMAN GEITHNER. Yes.

 

MR. LACKER. Vice Chairman Geithner, I spoke with Ken Lewis, President and CEO of Bank of America, this afternoon, and he said that he appreciated what Tim Geithner was arranging by way of changes in the discount facility. So my information is different from that.

 

CHAIRMAN BERNANKE. Okay. Thank you. Go ahead, Vice Chairman Geithner.

 

VICE CHAIRMAN GEITHNER. Well, I cannot speak for Ken Lewis, but I think they have sought to see whether they could understand a little more clearly the scope of their rights and our current policy with respect to the window. The only thing I’ve done is to try to help them understand—and I’m sure that’s been true across the System—what the scope of that is because these people generally don’t use the window and they don’t really understand in some sense what it’s about.

At least we now know who the bankers' mole on the FOMC was before, as gratitude for his services, he was promoted to Treasury Secretary of the US. Because if he leaked one, he leaked them all.

h/t Manal

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Fri, 01/18/2013 - 17:07 | 3167408 Say What Again
Say What Again's picture

Shit!!!

He won't even see the inside of a court room.

Forget about being sent to jail!

 

Fri, 01/18/2013 - 17:09 | 3167418 ACP
ACP's picture

Speaking of lies and manipulation, AAPL closes @ 500.00, the minimum price allowed by the Fed.

Fri, 01/18/2013 - 17:10 | 3167422 Say What Again
Say What Again's picture

Stop Running...

The new Olympic sport!

Fri, 01/18/2013 - 17:20 | 3167455 Careless Whisper
Careless Whisper's picture

If Ken Lewis knew about it, then Jamie Escobar and Lloyd Corleone got the word also.

Fri, 01/18/2013 - 17:23 | 3167472 SilverTree
SilverTree's picture

"No risk of that"

Fri, 01/18/2013 - 17:50 | 3167564 Zer0head
Zer0head's picture

 

 

Shit!!! He won't even see the inside of a court room.

no, the only thing he'll see is Opraha's FatAss in the chair across from him

 

Fri, 01/18/2013 - 18:10 | 3167639 SafelyGraze
SafelyGraze's picture

it isn't a leak when it's a briefing

note to lance: learn to talk more like tim. timtalk. timspeak. geithcant. treajargon. 

Fri, 01/18/2013 - 18:16 | 3167672 BoNeSxxx
BoNeSxxx's picture

I miss the days when this shit used to surprise me... I really do.

Fri, 01/18/2013 - 18:25 | 3167710 knukles
knukles's picture

That it happened does not surprise me.
The magnitude of the crime, however, is astoundingly large.
Like the big lie, the big crime.
About which nothing shall be done.

An indictment the entire fucking system.  Which we all need to see and hear, again and again, or it becomes lost in the minor crimes... and the argument of the unrelated minutiae.

Mind-boggling in its entirety.

Fri, 01/18/2013 - 18:37 | 3167736 Fish Gone Bad
Fish Gone Bad's picture

The Fed is composed of all the big banks.  They already make money out of thin air, is this really a surprise?

Fri, 01/18/2013 - 19:35 | 3167864 eatthebanksters
eatthebanksters's picture

Why is this news to anyone?  Old Timmeh knew about the Libor manipulations while he was at the NY Fed and kept it to hmself.  Kyle Bass said it best...the government's job is not to tell you the truth (especially after they fucked everythng up) it's to keep you confident.   

Ain't that a bitch?

Fri, 01/18/2013 - 19:43 | 3167877 SGS
SGS's picture

Jew out, Jew in.  Another 4 years, then repeat again.  Good luck Mr Lew.

Fri, 01/18/2013 - 20:12 | 3167938 James_Cole
James_Cole's picture

"Speaking of lies and manipulation, AAPL closes @ 500.00, the minimum price allowed by the Fed."

Speaking of lies and manipulation, AAPL closes @ 500.00, the exact price demanded by options.

There I fixed it for you.

Fri, 01/18/2013 - 21:24 | 3168104 CPL
CPL's picture

HOly fuck...I have NEVER seen that happen ever.  That's like winning the lottery twice in the same day.  

Or playing your own options against yourself because no one else is playing with you anymore so it will always rise to your own counter bid from a dummy trade account. 

Fri, 01/18/2013 - 21:28 | 3168111 old naughty
old naughty's picture

They all knew.

Mr. Larker is not a Club member...

We just find this out...hidden in plain sight !

 

Fri, 01/18/2013 - 22:35 | 3168231 Joe Davola
Joe Davola's picture

Lacker was just giving them a glimpse of his trump card - if he had any balls, there'd have been a leak...

Wait a minute dumbass, who's he gonna leak it to, no one in the media (who didn't want to be labeled a kook) would do anything with it.  Note to self, quit being such a dumbass.

Sat, 01/19/2013 - 01:45 | 3168454 Richard Chesler
Richard Chesler's picture

Scumbag Tim.

 

Sat, 01/19/2013 - 02:13 | 3168473 old naughty
old naughty's picture

Every dumbass has its moment of smartass...

Didn't you see Tyler's photo just below the subjet line?

He is 'think'ing to Mr. Larker: "Thanks ten millions, my "Years with the US Treasury" will sell like hotcakes"

"Lie Yo Me" lies himself, all the time, no?

 

Oh, you didn't call him dumbass...

 

So, scum-bag of millions.

Sat, 01/19/2013 - 05:13 | 3168530 Harlequin001
Harlequin001's picture

The Government has a simple choice, it can either allow the banks to rip you off any way they can and make 'profits' or they can sell bonds and bail them out. They certainly aren't going to shut them down, so which do you think they choose?

It isn't that difficult really is it? in fact the only difficult thing to work out is why people have anything to do with the banks whatsoever any more.

Sat, 01/19/2013 - 00:07 | 3168369 James_Cole
James_Cole's picture

Paying some guy at the wsj to write a hitpiece for a Sunday night dump, $10k.

Paying a few guys to reblog said wsj article, $50.

Friday close @ 500.00, priceless!

Fri, 01/18/2013 - 20:29 | 3167993 moroots
moroots's picture

The next time the Fed behaves in the interest of the public will be the first.  It does what it is designed to do - protect and insulate large banks.

The public has been duped by so-called academics like Krugman into thinking there is some vast science or you need a PhD to understand what they do.

It's not hard - they print money and they protect the ability of their constituent banks to print money.  That's basically it.

Fri, 01/18/2013 - 23:53 | 3168359 SMG
SMG's picture

Not  Jewish, Luciferian.

Sat, 01/19/2013 - 00:42 | 3168405 pbppbp
pbppbp's picture

SGS=BIGOT

Fri, 01/18/2013 - 19:10 | 3167808 a growing concern
a growing concern's picture

You know what I miss?  6 point two five fucking percent interest rates.  Jesus H Christ in a chicken basket, I'd kill for that.  You know, instead of the .0001% my savings account currently pays me.

Fri, 01/18/2013 - 19:14 | 3167821 ForTheWorld
ForTheWorld's picture

What do you need to save money for? Spend up big on credit, where the interest rates just keep rising!

Fri, 01/18/2013 - 19:34 | 3167860 donsluck
donsluck's picture

Hell, I get 10,000 times that in my liquid CD (1.0%)!

Fri, 01/18/2013 - 21:44 | 3168144 max2205
max2205's picture

It's your stealth tax no one wants to publicly admit.

Tax...I mean theft. Goes right to banks and EBT FOLKS.

REBEL against the wall

Fri, 01/18/2013 - 22:08 | 3168188 WmMcK
WmMcK's picture

+1 - But be careful what you wish for.  6.25% can  double quickly.

But mortgages will be 17% again like in 1980.

And there will be no Volker next time.

Sat, 01/19/2013 - 15:57 | 3168747 unununium
unununium's picture

> And there will be no Volker next time.

Oh yes there will.  This is a supercycle, not an implosion.

Fri, 01/18/2013 - 22:10 | 3168193 trav777
trav777's picture

there ain't shit out there that generate that yield for you.

Maybe brazil?  Colombia?  Take some risks I guess.

Fri, 01/18/2013 - 17:44 | 3167552 monoloco
monoloco's picture

The way they are stacking the deck, the USSA is resembling a 3rd world banana republic more everyday.

Fri, 01/18/2013 - 18:26 | 3167717 knukles
knukles's picture

No

We have already arrived.

Fri, 01/18/2013 - 20:47 | 3168025 Blano
Blano's picture

I use the phrase "3rd world shithole."

And as knuckles said, we're already there, not on our way.

Fri, 01/18/2013 - 18:15 | 3167667 SafelyGraze
SafelyGraze's picture

"If Ken Lewis knew about it, then Jamie Escobar and Lloyd Corleone got the word also."

Here's an instance of at least two experienced reporters who tiptoed to the edge of the truth and didn't quite believe where their reporting took them.

The story was too important to let the absence of verifying facts get in the way. Just like investors all over the world, the reporters and their peers wanted the no-federal-reserve-tips-to-bankers story to be true.

Sat, 01/19/2013 - 05:31 | 3168551 verum quod lies
verum quod lies's picture

Like Lacker not knowing, it depends on two things: (1) if you are a goy or not, and (2) if you are in control of a large bank or not. In short, the only goys in the know are those nearly extinct birds in charge of a large member bank. Goy Fed heads like Lacker will be the last to know as they have no value to their/your overlords. From that exchange, it honestly seems Lacker doesn't understand the game being played (maybe Lewis didn't either, but due to his position he will be informed ahead of time, unlike Lacker who will only hear when it is absolutely necessary to carry out his orders).

Fri, 01/18/2013 - 17:34 | 3167471 nope-1004
nope-1004's picture

Takes ZERO aptitude to be a successful insider.  Geithners' free citizenship label is TAX EVADER.  His Treasury Secretary label is LIAR.

Where there is smoke, there is taxpayer fraud.

In America, stealing from taxpayers gives you the label "Honorable".  What a joke !!  No wonder the financial world is crumbling.... it's being run by complete frauds !!

Geithner - what a loser.

 

Fri, 01/18/2013 - 17:56 | 3167594 Chupacabra-322
Chupacabra-322's picture

@ nope-1004,

"No wonder the financial world is crumbling.... it's being run by complete frauds !!"

No, its run by the Global Criminal Cabal Crime Syndicate.

Fri, 01/18/2013 - 18:26 | 3167707 nope-1004
nope-1004's picture

And they aren't fraudsters?  lol..

Fri, 01/18/2013 - 18:38 | 3167739 Chupacabra-322
Chupacabra-322's picture

The whole Global Economic System is built on Criminal Fraud.  Run and engineered by The Global Criminal Cabal Crime Syndicate run out of the City of London of which Wall Street is just an extension of. 

Fri, 01/18/2013 - 18:04 | 3167620 Carl Spackler
Carl Spackler's picture

Our only hope is civil litigation against Geithner.

Hmm, I  wonder if Timmy also played a facilitative role in the widespread LIBOR scamming?

Fri, 01/18/2013 - 18:28 | 3167720 knukles
knukles's picture

Yes, that is already public record he was aware of the misdeeds.

Sat, 01/19/2013 - 11:46 | 3168752 unununium
unununium's picture

... and Tim had a central role in the taxpayer payoff of Goldman that was the AIG "bailout".

Fri, 01/18/2013 - 22:30 | 3168223 socalbeach
socalbeach's picture

I wonder if Geithner supports gun control for the plebs ?

Fri, 01/18/2013 - 21:25 | 3168106 Cash2Riches
Cash2Riches's picture

This doesn't surprise me at all. Just about the whole financial world is a ponzi scheme.

Keep Stacking Gold and Silver. Protect your wealth.

Fri, 01/18/2013 - 22:16 | 3168203 Chuck Walla
Chuck Walla's picture

Well, he wasn't going to get hIs next job from Joe the Plumber.

FORWARD SOVIET!

Fri, 01/18/2013 - 17:42 | 3167540 yogibear
yogibear's picture

APPL, NY Fed's (WIlliam Dudley) favorite stock.

The Fed banks can just sit on the shares.

 

Fri, 01/18/2013 - 17:43 | 3167544 Snakeeyes
Snakeeyes's picture

Geithner CONSULTED WITH MAJOR BANKS before makig any decision. 

Fri, 01/18/2013 - 17:58 | 3167596 helping_friendl...
helping_friendly_book's picture

Old news.

Sat, 01/19/2013 - 07:21 | 3168580 mr_T
mr_T's picture

Timmy part of the ..Can't touch this club...
Not to be mistaken with the TBP Club .. too big to prosecute

Fri, 01/18/2013 - 17:11 | 3167419 Kaiser Sousa
Kaiser Sousa's picture

"He won't even see the inside of a court room."

and ultimately that is the fault of the citizenry...

why he should b allowed to take another breath?????

nothing will change until the bankers r made to pay with their lives....

n the mean time, off to see my Silver guy....

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