M. Franzese on Geithner, Soros

M. Franzese on Geithner, Soros, et alia  https://www.liveleak.com/view?i=a54_1238089136&comments=1

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8-21-14     I did a lot of things at times with people on Wall Street and I just don’t trust them. Bottom line.

I mean, a lot of guys are shady and they did shady things with me, so I don’t trust them.  And I don’t like other people that I don’t know really well taking care of my money. I think that I can do it better.

Especially in our country, I think that there’s a bubble that’s going to burst at some point and when it does it’s not going to be good.  There’s going to be an adjustment.

[When investing in gold and silver] I’m talking about physical bars because no matter what it’s always going to have a value.  It’ll always be something, unlike stocks to where in our country, you know, you go to sleep and everybody tells you everything’s wonderful… then you wake up and everything’s gone.

I’m very careful when it comes to investments like that. 

-M. Franzese  http://www.shtfplan.com/headline-news/former-mob-boss-warns-of-stock-market-crash-i-dont-trust-wall-street-buy-gold-and-silver_08212014

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-Manchanda:  Deep State Defector, 2017, ch. 1

-Manchanda:  Deep State Defector, 2017, ch. 2  https://books.google.com/books?id=9ZxBDwAAQBAJ&pg=PT1&lpg=PT1&dq=manchanda+deep+state&source=bl&ots=kdJqQu4OD_&sig=NEiq2c-SAFNF8UM3b74_kSmhYCw&hl=en&sa=X&ved=0ahUKEwiC25aUlo7ZAhUJMqwKHfGIA1kQ6AEINDAC#v=onepage&q=manchanda%20deep%20state&f=false

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10-8-09               

        Geithner's relationship with Goldman, JPMorgan, Citigroup and their executives dates to his tenure as president of the Federal Reserve Bank of New York.  As one of Wall Street's top regulators, Geithner worked closely with executives and built relationships he brought with him to his corner office at the Treasury Department.

The prominence of those relationships is clear by the company they keep on Geithner's calendars.

On March 24, just after Geithner announced plans to help banks sell off toxic debts left over from the housing market meltdown -- which stood to be a boon for big banks -- his calendars reflect a busy morning.  He had a briefing on terrorism financing, a meeting on tightening financial regulations and a prep session for congressional testimony.

Geithner emerged to take just three phone calls, from Vice President Joe Biden, New York Attorney General Andrew Cuomo and shortly before heading to Capitol Hill, from Dimon.

Officials at JPMorgan, Citigroup and Goldman had no comment on Geithner's calendars.

Geithner's predecessor at Treasury, Henry Paulson, similarly kept in close touch with Wall Street power brokers.  Though his calendars showed many contacts with bankers at the height of the banking crisis, they showed frequent calls with Blankfein at key times.  Paulson came to Treasury from Goldman.

At the New York Fed and then at Treasury, Geithner helped put together multibillion-dollar taxpayer bailouts for Wall Street investment firms, including Goldman, JPMorgan and Citi.  Even banks that have repaid the money still enjoy massive subsidies.  Their quick returns to record profits and million-dollar bonuses sparked outrage.

Critics said the government was too quick to help the banks and was unwilling to let them suffer the consequences of their bad bets.  http://www.businessinsider.com/john-carney-look-who-really-controls-tim-geithner-2009-10

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1-28-2010   Treasury Secretary Timothy Geithner was summoned to testify before the House Committee on Oversight and Government Reform yesterday in order to answer two questions:  why did he sign off on AIG paying the big banks full value on insurance for bad assets like mortgage-backed securities–using $62 billion in taxpayer money–at a moment when everyone else was taking losses? And what was his role in the decision not to disclose to the public–which owned 80 percent of AIG at the time–the names of the banks and the payments they received, as AIG was prepared to do before the Federal Reserve Bank of New York (FRBNY) run by Geithner advised them not to?...

 Geithner argued that the New York Fed was operating under a gun.  In November 2008, credit rating agencies–the same ones that gave mortgage-backed securities their highest AAA rating–were about to screw us again by downgrading AIG’s credit rating when taxpayers had already handed the company an $85 billion bailout in September.  A downgrade would require AIG to pay out tens of billions of dollars more in collateral payments to the banks on the credit default swaps (insurance on the bad assets)–money that it didn’t have and that Geithner maintained would force the company to collapse.  Geithner said AIG’s failure would cause an “utter collapse”–a run on banks, thousands of factories closed, millions of more Americans losing jobs, savings and home values even more devastated.  Paulson said unemployment would have been over 25 percent. 

AIG had already begun asking the banks for concessions, or “haircuts,” on these contracts.  Only USB agreed to consider a 2 percent reduction in payments–and only under the condition that the other financial firms agreed to it as well. According to Geithner, the New York Fed decided there wasn’t sufficient time to negotiate.  AIG was about to report an earnings loss of $25 billion on November 10, which would have resulted in a credit downgrade.  Geithner argued that even the haircuts themselves could have led to a downgrade and consequent collapse. 

But Democratic Congressman Stephen Lynch of Massachusetts wasn’t buying it. He pointed to Bear Stearns, and the fact that then-Secretary Paulson, Fed Chairman Ben Bernanke, and Geithner forced the firm to accept two cents on the dollar for their shares in order to receive bailout money. How was it Goldman and the other firms got such a sweet deal on this backdoor bailout via AIG? 

“The money going into AIG is going right out to the counterparties,” said Lynch. “This is a pass-through. And the folks on the other side are Goldman Sachs–that’s a principal beneficiary. And we don’t negotiate a nickel–not a nickel, not a cent–off of what they’re getting. You’re saying, ‘Oh, the regulations were different.’ Let me tell you something, you were changing the rules and regulations every single day. You had every opportunity–every opportunity to weigh in on behalf of the American people and make these people take a new deal, make them take a haircut. You scalped the folks at Bear Stearns–two cents on a dollar, they got. The folks at Goldman Sachs got a hundred cents on a dollar. That is just unacceptable. Totally unacceptable.” 

Lynch was fuming and went on to address the recusal issue. “Changing over to the Obama Administration–you get the same people who are relying on you. The American taxpayer when you’re in one job, and the American taxpayer when you’re in the other job,” he said. “I don’t see a conflict. You could have done the right thing by those people, and it just stinks to high heaven, what happened here. And to top it all off–the disclosure was not there. The disclosure was not there at the proper time to tell the American people, to tell this Congress, what was going on. And that is just inexcusable. And it makes me doubt your commitment to the American people. And I think the commitment to Goldman Sachs trumped the responsibility that our officials had to the American people.”  https://www.thenation.com/article/geithners-aig-bailout/

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