Geithner: ‘Backdoor Bailout’ Was ‘Absolutely’ the Right Thing to Do
Two messages worth noting from Treasury Secretary Tim Geithner’s interview with CNBC yesterday: (1) Although he was the head of the New York Federal Reserve in
Jul 31, 2020159K Shares4.5M Views
Two messages worth noting from Treasury Secretary Tim Geithner’s interviewwith CNBC yesterday: (1) Although he was the head of the New York Federal Reserve in late 2008, he had nothing to do with the decisionto pay $62 billion to Goldman Sachs and others through the AIG bailout. And (2) but it was 100 percent the right decision to make.
“„CNBC: You still believe it was the right thing to pay counterparties 100 cents for the dollar?
“„Geithner: Oh, absolutely. Again, the way–this is a tragic failure in the system, and we had no effective legal means to step in and prevent default without doing what you said, helping this firm meet all its legal obligations. That’s why at a centerpiece of the president’s reform proposals is to give the government the tools to unwind, dismember, break up, sell these institutions without the taxpayer being put in the position of having to absorb their losses. That’s the basic–one of the most important reasons why we have to get reform in place.
“„We had no choice at the time other than to do this. And I’m, personally, very confident it was the right thing to do, and we did it in the best way possible for the American people.
Geithner will testify Jan. 27 before a House oversight panel on his role in those decisions.
Dexter Cooke
Reviewer
Dexter Cooke is an economist, marketing strategist, and orthopedic surgeon with over 20 years of experience crafting compelling narratives that resonate worldwide.
He holds a Journalism degree from Columbia University, an Economics background from Yale University, and a medical degree with a postdoctoral fellowship in orthopedic medicine from the Medical University of South Carolina.
Dexter’s insights into media, economics, and marketing shine through his prolific contributions to respected publications and advisory roles for influential organizations.
As an orthopedic surgeon specializing in minimally invasive knee replacement surgery and laparoscopic procedures, Dexter prioritizes patient care above all.
Outside his professional pursuits, Dexter enjoys collecting vintage watches, studying ancient civilizations, learning about astronomy, and participating in charity runs.
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