Timothy Geithner: Rather than do the right thing, do the wrong thing and cover your tracks

It’s horrible enough Timothy Geithner, as New York Federal Reserve Chairman, gave A.I.G. tens of billions of taxpayer dollars to help pay off bankrupt A.I.G.’s creditors' gambling credit default swap winnings at 100 cents on the dollar.

But now we learn that Geithner fought even A.I.G. itself to prevent A.I.G. from disclosing that it was paying off the credit default swaps at 100 cents on the dollar.

Geithner’s actions prove he knew the bankrupt A.I.G. shouldn’t be using Fed money to pay off private debts at 100% of face value. But instead of cutting a deal with creditors (read: his banking buddies) to take even a modest haircut and appease the public, Geithner strong-armed A.I.G. into keeping the payments secret!

Posted by James on Thursday, January 07, 2010