Why Geithner & Summers Should Be Fired

I wrote this post on Twitter about John Boehner calling for President Barack Obama to fire Tim Geithner and Lawrence Summers.

@thereidreport Boehner asking for Geithner to be fired would have progressives press for a more Left-leaning Sec o Treasury.

Geithner backed executive bonuses for AIG bonuses. AIG CEO Edward Liddy told Congress Geithner knew about the bonus money executives were going to reward themselves. Time reported the New York Federal Reserve informed Geithner of the bonuses before the March 10, 2009 date Geithner gave Congress.

Although Treasury Secretary Timothy Geithner told congressional leaders on Tuesday that he learned of AIG's impending $160 million bonus payments to members of its troubled financial-products unit on March 10, sources tell TIME that the New York Federal Reserve informed Treasury staff that the payments were imminent on Feb. 28. That is 10 days before Treasury staffers say they first learned "full details" of the bonus plan, and three days before the Administration launched a new $30 billion infusion of cash for AIG.

Dodd tells CNN that the Treasury Department told him to take out amendment limiting executive bonuses.



As head of the New York Federal Reserve, records show Geither told AIG to take out references to key deals from regulatory filings. This is extremely unethical for a public servant to do. At the New York Federal Reserve, Geither negotiated the AIG bailout plan. Geithner is more aware than most of the financial troubles AIG is facing. Geither placed protecting AIG above the American public.

Geithner used AIG to funnel bailout money to cover Goldman Sach's naked credit default swaps losses. Goldman Sachs played a significant role in the mortgage meltdown. Goldman Sachs betted against the housing industry and attempted to collect on the CDS. AIG was too extended to pay when the 2009 Wall Street meltdown occurred. Both AIG and Goldman Sachs did a nose dive and the taxpayers were left with the bill. Geithner's response has been to protect these institutions from oversight.

Jon Walker of Firedoglake explains why firing Geithner and Summers is bad politics for the Republican Party.

House Minority Leader John Boehner (R-OH) has recently called on President Obama to fire Treasury Secretary Tim Geithner and Director of the National Economic Council Larry Summers. Now I don’t know how Boehner’s mother raised him, but where I come from, that behavior would be considered downright rude. Where is the gratitude? I think John of Orange owes them an apology. Trying to get the two individuals whose actions played a major role in assuring that Boehner will be promoted (to the position of Speaker of the House after Republicans win big this November) fired is just bad manners in my book. If it weren’t for Summers’ terrible economic projections and horrible advice, combined with Geithner’s equally bad counsel, consistently putting the prosperity of Wall Street over main street while horribly mismanaging the HAMP program, Boehner would not be close to measuring the drapes for the Speaker’s office.

Summers favors the current banking monopoly and urged Bill Clinton to sign the Gramm-Leach-Bliley Act. As President of Harvard, Summers made the sexist statement that women do not have the same "aptitude" as men to succeed.

Unfortunately, Geithner and Summers hold too much sway over the President. It is ashame because this maybe the only time I will ever agree with Boehner.