Geithner, The Real Bailout Czar

Special Report: The Obama Era Begins by Jonathan Hoenig (Author Archive)

from Smartmoney.com

The Real Problem with Geithner for Treasury

The Real Bailout Czar

In an age of bailouts, Geithner is the original Bailout Czar. It was Geithner, after all, who was the instrumental figure in arranging JP Morgan’s (JPM: 22.82, -1.52, -6.24%) takeover of Bear Stearns, a deal in which $29 billion of taxpayer money was pledged as a backstop against illiquid and toxic assets.

It wasn’t Hank Paulson, but rather Tim Geithner who put together the plan to have the government rescue AIG, to the tune of $85 billion and growing.

It has been widely noted Geithner was in favor of stepping in with taxpayer dollars to save Lehman Brothers. I guess it’s pretty easy to spend taxpayer dollars when you aren’t even paying your own taxes.

If you are unfamiliar with Geithner, simply go the Federal Reserve’s web site to see a line-item balance sheet of his work: billions of tax dollars for AIG, Bear Stearns (look for “Maiden Lane LLC”; it’s the corporation created for Bear Stearns’s liquidation), commercial money markets and loans to primary dealers.

Maybe the Czar that got us in this mess can get us out. Not likely, but maybe he can switch the blame to Bush.

Geithner fits the Obama Profile, Reward Failure.