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Archive for the ‘Tim Geithner’ Category

Geithner to Join Warburg Pincus

Posted by Steve Markowitz on November 19, 2013

The Wall Street Journal reported that Timothy Geithner, former U.S. Treasury Secretary, is joining Warburg Pincus, a private equity company.  Geithner will become the firm’s president and managing director

Tim GeithnerWarburg Pincus is a well-known New York buyout firm specializing in using other people’s money, i.e. borrowed funds, to buy companies.  They then slice and dice the companies and ultimately (fairly quickly resell them at a profit.  While some argue that such firms help make companies more efficient, they also saddle their acquisitions with significant debt that often hurts these companies’ long-term viability.  In addition, firms like Warburg Pincus typically place huge management fees on the companies until they are resold.

While Timothy Geithner is a bright and talented individual, he has no experience in the private equity world.  It is likely that his deep contacts within the government significantly increase his value to the new employer.

Geithner going for the gold after leaving government is too often the case for former politicians and government employees.  This includes former CIA chief David Petraeus becoming an executive of another large buyout firm, KKR.  Republicans are not immune to this incestuous type relationships after leaving government.  Former VP Dan Quayle and former Treasury Secretary John Snow work for Cerberus Capital Management.  The examples are endless.  If the departing government employee is not good enough to get a cushy job at an investment bank, they likely become a high paid Washington lobbyists for a special interest group.

In the case of Timothy Geithner, joining a buyout firm is especially troubling given the firm’s close relationship to the New York investment banks that were bailed out by the government under Geithner’s direction.  Geithner was a key architect of the banks’ bailouts, as well as that of AIG.  He was often criticize or allowing AIG executives to receive the huge bonuses even after the bailout.

It is been a long time since working for the government meant being a public servant.  It has since become a guaranteed avenue for achieving power and wealth.

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Rand Paul Calls for Secretary Geithner to be Replaced

Posted by Steve Markowitz on September 8, 2011

Lee forwarded the video below.  Senator Rand Paul, Republican from Kentucky, made a four-minute speech yesterday on the Senate floor that offers a concise explanation of the Country’s ongoing economic problems.  He rightfully blames the elitist members of the Federal Reserve and the Administration, including Secretary Timothy Geithner, for helping to create the bubbles that created the initial financial meltdown and the policies that have prolonged it.

Whether or not one agrees with Senator Paul’s economic philosophies, only insanity could suggest that more of the same policies that got us to where we are today will do any better in the future.

Posted in Federal Reserve, Tim Geithner | Tagged: , , , | 8 Comments »

Congresswomen Who Took Geithner to the Woodshed

Posted by Steve Markowitz on April 20, 2011

Timothy Geithner, the current Treasury Secretary, earned the nickname “tax cheat Tim” when it come out in his confirmation hearings that he didn’t pay all the taxes he owed to the US Treasury.  While a bit of a stink was raised at the time, the Obama Administration and its compatriots in Congress claimed that Geithner should get a pass for his indiscretions because of his importance to our economy.  How sad it is that those in power are not held to the same standards for the People they supposedly work for.

While the attached video forwarded by a reader is over a year old, it is instructive.  In it Democrat Congresswomen of Ohio, Marcy Kaptur, questions Geithner in a hearing about the incestuous relationship between bankers, the Fed and the Treasury department.  She points out that Goldman Sachs was the largest domestic counter-party benefactor of the AIG bailout at a time when ex-Goldman executives were in positions of power, including then Treasury Secretary Hank Paulson.

Geithner’s responses to Kaptur were testy, evasive and defensive.  On multiple occasions he used phrases like: “you know the answer to this question” and “it is a matter of public record”.  Such rhetorical answers are often used to deflect truth.  It is evident that Geithner understands that the bailouts not only benefited few, but that most of the benefits went to those that actually caused the economic meltdown in the first place.

Posted in Bailouts, Tim Geithner | Tagged: , , , , , , , , , , | 1 Comment »

Tim Geithner & The US Dollar; Oh Boy!

Posted by Steve Markowitz on October 17, 2009

timothy_geithnerThis Blog and others have expressed concern over Treasury Secretary Tim Geithner’s failure to properly pay his taxes in the past.  Prior to being confirmed as Treasury Secretary it was discovered that Geithner did not pay certain taxes that were due.  He then paid them after he was “caught” during the confirmation process.

Secretary Geithner was recently interviewed by CNBC’s reporter and commentator Maria Bartiromo.  I post below a small part of that interview that related to the US dollar: Read the rest of this entry »

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