Ask Tim Geithner Questions

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Ask Tim Geithner Questions
By: ubetchaiam Monday April 20, 2009 12:39 pm	Tweet

Richard Neiman, Member of the Congressional Oversight Panel for the Emergency Economic Stabilization Act, asked HuffPost readers to submit questions for Treasury Secretary Geithner
http://www.huffingtonpost.com/richard-h-neiman/a-call-for-questions-for_b_189024.html

Below are the questions I submitted; I urge you to send in your own questions.
Or use mine if you want.

Dear Mr. Neiman;
Per the HuffPost request ,here are some of my questions.

1. Why does Geithner refuse to act per the law (Title 12, Sec. 1831o) mandating that banking regulators take "prompt corrective action" to resolve any troubled bank?

2. Does he really think the American people are so stupid as to not see the kabuki dance the ‘stress tests’ are?

3. The PPIP has been shown by various analysts to be a taxpayer subsidy to relieve banks of assets they are unwilling to sell at ‘market’ pricing; why should taxpayers be required to subsidize the mismanagment,greed, and lack of social conscience exhibited by these large banks?

4. Given that ‘credit’ (debt) is the impetus behind all the current financial industry issues, why is there such a focus on the ‘return to normal’ that brought us to the current situation?

5. When are you,Summers, Romer, and Bernanke going to resign for the good of the country?

12 Comments Recommend

12 Responses to Ask Tim Geithner Questions

Janushka April 20th, 2009 at 1:24 pm «

Thanks for bringing my attention to this. Here is the question I sent:

As per the Huffington Post, here is a question I would like Secretary Geithner to be asked:

Goldman Sachs has stated that it wants to pay back the TARP money so that is free of restrictions on executive compensation. I have also read that they are more interested in lending/investing overseas than in the United States; and their interest in lending in the U.S. is only for mergers from which they derive huge investment banking fees. They are smart enough to know that they are (rightfully) subject to criticism for this while they are being subsidized by U.S taxpayers. This sort of lending will not help the U.S economy.

My question for Mr. Geithner is whether Goldman will be asked to retire the FDIC-backed debt they have issued ($25B and counting) before they are given the freedom to do as they please. Or will they continue to be able to issue such debt, and not be forced to retire the existing debt (and use the proceeds for overseas lending and mergers)?

Here is a little excerpt from the March 16 edition of Barron’s Magazine in a story about Goldman and Morgan Stanley.

Both companies are benefiting from government initiatives to pump liquidity into the markets, including a program that lets many financial companies sell debt with maturities as long as three years and backed by the FDIC. Morgan Stanley has issued $23 billion of such debt; Goldman, $25 billion. Although banks pay a fee of as much as 1% for it, the FDIC guarantees amounts to a subsidy. Without it, the companies likely would have to offer interest rates two to three percentage points higher to attract buyers. So, the two may be getting a subsidy of $500 million or $750 million a year.

The aim of the program, which began in October, is to trim bank-funding costs and encourage consumer and business lending. Goldman and Morgan Stanley, however, make few loans, save for the kind that many in Washington detest — those for job-killing mergers like the pending Pfizer/Wyeth combination.
ubetchaiam April 20th, 2009 at 1:27 pm «

Good question; hope others chime in.
BooRadley April 20th, 2009 at 3:10 pm «

Had no clue this existed, thanks. Dugg and recommended.
Ann in AZ April 20th, 2009 at 3:22 pm «

This is an unconscionable ripoff of another website! Digg is stealing content. Digg is stealing traffic and maybe advertising! You are not on the Firedoglake Oxdown page. Look at you address bar! If Firedoglake were my site, I’d sue.
Nathan Aschbacher April 20th, 2009 at 3:34 pm «

I simply asked the following.

“Addressing Treasury Secretary Geithner: What indicators would signal that we’re facing a deeper solvency crisis, rather than a liquidity crisis as you’ve assessed?”

“Addressing Treasury Secretary Geithner: What will the cost be to the nation in opportunity, credit-worthiness, and real Dollars if your assessment that we’re facing a liquidity/confidence crisis is incorrect?”
DrZen April 20th, 2009 at 5:02 pm «

Mr Geithner, is it your honest belief that the assets you describe as “legacy assets” are undervalued or do you in fact believe the market correctly values them as close to worthless?
Hugh April 20th, 2009 at 6:30 pm «

I like your questions. The first one I thought of was the PCA one too.

What I would like to know is are there any conditions (be specific) under which Geithner would stop violating the law and put the banks into bankruptcy.

I would similarly like to know if he supports the re-imposition of Glass-Steagall, the law which could have done the most to forestall or mitigate the financial crisis, and if he does not, why not (again being specific).

The truth is though that Geithner is such a creature of Wall Street that asking him anything is pointless. He has shown that, given the chance, he would spend the country into bankruptcy rather than admit the bankruptcy of the financial system of which he is so much a part. Geithner and Summers are far too much of the problem ever to be a credible part of any solution.
Nathan Aschbacher April 20th, 2009 at 8:05 pm «

I think the only way to gain any ground is going to be to get Sec. Geithner to credibly concede his position that it’s a liquidity crisis. Until you do that, all other arguments are simply too easily deflected. Which makes his gripping to it like grim death not all that coincidental in my opinion.

ubetchaiam April 20th, 2009 at 8:46 pm «

Hugh,ImperialFlow, please send your questions into Mr. Neiman’s mailbox; this hearing will be quite interesting.

But given Obama’s lack of morale fiber demostrated by indicating no one will be prosecuted for torturing others, I doubt iff Geithner will show anything but confidence in his and the ‘economic team’s’ plans.

Nathan Aschbacher April 20th, 2009 at 9:48 pm «

Already sent them. :-)

Here’s a direct copy of my e-mail; Subject: Questions for Sec. Geithner

Mr. Neiman,

The claimed motivations of Treasury’s actions to-date are based on a
perception that the financial and greater economic crisis are founded
in a liquidity and short-term confidence crisis. Without addressing
the validity of that perception, no argumentation is viable, as almost
any legitimate greater critique or question can be deflected as the
questioner’s misapprehension of the crisis. To that end I would like
to pose the following questions:

Addressing Treasury Secretary Geithner: What indicators would signal
that we’re facing a deeper solvency crisis, rather than a liquidity
crisis as you’ve assessed?

Addressing Treasury Secretary Geithner: What will the cost be to the
nation in opportunity, credit-worthiness, and real Dollars if your
assessment that we’re facing a liquidity/confidence crisis is
incorrect?

Thank you,
-Nathan Aschabcher
Leen April 21st, 2009 at 7:21 am «

My statement/question.

During a Bill Moyers special Moyers stated that last fall former Secretary of the Treasury Hank Paulson was heard saying that “the efforts to block executive compensation would not hold water”

Did Paulson interfere with the efforts to block executive compensation during the bailout?

Am unable to link to that question site
ubetchaiam April 21st, 2009 at 10:24 am «

Leen, it is an email address for questions to be sent to; now toolate but you can see Neiman’s opening remarks on HuffPost under ‘watch elizabeth Warren,etc..
Also Selise has a great diary up where the link to the Oversight Cmte. hearing is going on.

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