Geithner to Address Dems Tonight
Treasury Secretary Tim Geithner is slated to address House Democrats tonight, providing a preview of the Obama administration's planned "stress tests" of the largest banks receiving bailout money.
But the real question is whether Geithner will get grilled by the president's party about his recent performance, particularly after today's New York Times report that staff shortages and long to-do lists at Treasury have forced a postponement of the detailed financial re-regulation plan that was once expected by April.
Rep. Brad Sherman (D-CA), a senior member of the House Financial Services Committee who took the lead on the executive-compensation issue during the stimulus debate, indicated via e-mail that he plans to ask Geithner "why we are fully protecting counterparties and general uninsured creditors of the big banks while we do no such thing as to insolvent small and medium banks."
















One of complications that Timmy! has to deal with is the bankruptcy-law change passed a few years (2007?) ago. If AIG goes BK, its creditors who are owed insurance payments from the Credit Default Swap policies they bought get to go to the head of the line. In fact, I've heard it described as bypassing the creditor line entirely.
So... how about an emergency BK law amendment to undo that? Or maybe Timmy! and friends are thinking about legislation authorizing an ad-hoc structured bankruptcy specifically for AIG and its ilk? One that would bypass the special position that the CDS counterparties managed to wheedle for themselves?
March 9, 2009 5:11 PM | Reply | Permalink
Congress shouldn't approve one more red cent to bailout billionaire bankers until this supposed financial re-regulation is signed into law.
I hear rumors that there is supposed to be something call the "Progressive Caucus" in the US House of representatives. There is even a web page with an agenda and a list of members.
If it existed in anything but name you might think this would be a good place to draw a line in the sand.
If it really exists, except as a web page....
March 9, 2009 6:40 PM | Reply | Permalink
So much for transparency.
Thx Timmy!
Mr. Obama...are you listening?
March 9, 2009 10:21 PM | Reply | Permalink