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TIMOTHY GEITHNER QUESTIONED; MAINSTREAM MEDIA VIRTUALLY SILENT
by Sharon Rondeau
(Mar. 11, 2012) — Fox News has reported that putative Treasury Secretary Timothy Geithner was detained and questioned on February 24, 2012 by New York City Police in regard to his role during the 2008 financial crisis. Geithner was President of the Federal Reserve Bank of New York at the time that AIG was granted billions of dollars in bailout funds in 2008 and is now putative Treasury Secretary. Fox News appears to be the only major media source reporting on the incident, although a smaller online news source reported contacting Geithner’s press office and receiving no response to his questions about the incident.
Judge Andrew Napolitano stated that the evidence against Geithner is “piling up.” “This does not look very good for intellectual honesty and for the competence of reposing the people’s money in his hands,” Napolitano said. Nearly $70B in taxpayer funds were loaned to AIG from the U.S. Department of the Treasury. AIG has reportedly repaid loans from the Federal Reserve.
The Federal Reserve Bank is a private company with offices around the world and not affiliated with the federal government, despite its name. Passed by Democrats in Congress shortly before Christmas in 1913 under President Woodrow Wilson, the Federal Reserve was approved so that the nation would have a central bank following the Panic of 1907. The Federal Reserve controls the issuing of currency and interest rates set by banks. The “constitutional mandate” for Congress to coin the money of the nation was turned over to the Federal Reserve as a result of the Act, and the “Fed” claims that “the citizens of the United States” are its owner. Congress has the authority to oversee the Federal Reserve System.
While the Federal Reserve has stated that it “is subject to several levels of audit and review,” Congressman and presidential candidate Ron Paul has introduced, more than once, a bill to order a complete audit of the Federal Reserve Bank. Paul stands against government regulation of interest rates and corporate bailouts.
As President of the New York Federal Reserve, Geithner was a member of “the group responsible for formulating the nation’s monetary policy.” Before his nomination for Treasury Secretary in November 2008, Geithner was reportedly “a well-regarded figure.” Prior to his nomination and appointment at Treasury, Geither had proposed that the President of the United States be granted by Congress “broad power to guarantee all the debt in the banking system,” an idea which did not initially gain traction.
Reports that Geithner told AIG to withhold information from the public on the matter of credit default swaps in 2008 were published two years ago. The U.S. Treasury Department reportedly owns 77% of the insurance company which received a “bailout” and is now seeking to sell off an asset to repay the funds loaned during the financial crisis which even Obama supporters call a “scandal.” Meanwhile, an editorial published in The Washington Post on March 8, 2012, opines that “OF ALL THE financial institutions that got government aid during the financial panic of 2008, none was less morally deserving than AIG.”
Last summer, The Huffington Post reported that Geithner gave special dispensation to his successor at the New York Federal Reserve Bank “to maintain his financial stake in insurance giant AIG, whose government bailout helped prop up investment firms like Goldman Sachs” in an apparent conflict of interest.
AIG’s fourth-quarter income last year was reported at $19.8 billion.
Geithner was confirmed as Treasury Secretary by the U.S. Senate in late January 2009 after testimony proved that he had failed to pay Social Security and Medicare taxes. Geithner described the omission as “careless.”
Last August, it was reported that Geithner had considered leaving the Obama regime but decided to “remain in the administration.” It is unclear as to why reports of possible crimes committed by Geithner by removing references to credit default swaps which were purchased at full face value. Rep. Darrell Issa, Chairman of the House Oversight and Government Reform Committee, began investigating the AIG bailout and Geithner’s role in withholding information in January 2010. Geithner told Issa’s committee that he “wasn’t involved” in the deal which loaned AIG $62 billion, possibly “spending billions more than necessary” to prevent the collapse of the international insurance company. Geithner is also reportedly accused of ordering the diversion of $13 billion from AIG to Goldman Sachs without the public’s knowledge.
The Post & Email contacted the New York City Police Department earlier today but was unable to confirm whether or not Geithner had been detained there on February 24.
If evidence existed that Geithner was guilty of wrongdoing more than two years ago, why has he only recently been questioned? Did he commit a crime, and if so, when will the media report on it? One blogger has described the “corporate media” as being “in panic mode,” hence their non-reporting of the story.
Has someone agreed to testify against Geithner?