Former New York Governor Eliot Spitzer, also known as Client Number 9, says Treasury Secretary Tim Geithner has been screwing the American people for years.
NewsMax.org reports the sordid details of this pseudo-sex scandal:
…Spitzer cites a new report on the government bailout of AIG, issued by Special Inspector General Neil Barofsky that reveals that then-New York Fed President Geithner and others capitulated to the very banks they should have been supervising.
After Geithner intervened in AIG’s negotiations with its counterparties, which included Goldman Sachs, JP Morgan Chase and UBS, they received 100 cents for every dollar the giant insurer owed them, even though they were ready to accept much less.
Geithner’s intervention added at least $13 billion to the bailout costs, which taxpayers will ultimately pay.
“Barofsky’s report reads like a case study in failed negotiation,” Spitzer writes in Slate magazine.
“The New York Fed didn’t have the backbone to stand up to Wall Street, didn’t understand its capacity to protect taxpayers, and didn’t appreciate that its responsibility was to taxpayers.”
We think Spitzer is being a tad harsh. C’mon, Eliot, cut Geithner a little slack. The guy didn’t even know how to do his taxes. So what makes you think he capable of understanding complex financial negotiations?
Source: NewsMax.com
