By Jesse Benton<\/p>\n
A must read here. The author does not come at this problem exactly from our point of view (he’s probably a monetarist), but has some astounding information.<\/p>\n
\nGeithner’s last job, as the President of the New York Fed highlights that question. The NY Fed’s most important jobs, arguably, are safety and soundness supervision and capital market supervision. Success in carrying out those responsibilities should be the basic litmus test for the measuring how well the NY Fed is serving the public trust. In these roles it is supposed to examine, regulate and oversee the Federal Reserve regulated bank holding companies in the NY Fed’s region<\/a>, the largest bank holding companies in the country, many of which were AIG’s counterparties.<\/p>\n
I expect documents to come to light that will show that Geithner and Summers did the WTO negotiations on behalf of the industry and viewed the completion as a ‘deliverable’ to their financial constituents. How can Obama <\/strong>say<\/a>, while Summers and Geithner are his team, “if the banks want a fight, I am ready to fight them”?<\/strong><\/p>\n
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