Eliot Spitzer returns to his role of Wall Street scourge with this Slate column about AIG, but his real target, it seems, is Tim Geithner:
Here are several questions that should be answered, in public, under oath, to clear the air:
What was the precise conversation among Bernanke, Geithner, Paulson, and Blankfein that preceded the initial $80 billion grant?
Was it already known who the counterparties were and what the exposure was for each of the counterparties?
What
did Goldman, and all the other counterparties, know about AIG's
financial condition at the time they executed the swaps or other
contracts? Had they done adequate due diligence to see whether they
were buying real protection? And why shouldn't they bear a percentage
of the risk of failure of their own counterparty?
What is the
deeper relationship between Goldman and AIG? Didn't they almost merge a
few years ago but did not because Goldman couldn't get its arms around
the black box that is AIG? If that is true, why should Goldman get
bailed out? After all, they should have known as well as anybody that a
big part of AIG's business model was not to pay on insurance it had
issued.
Why weren't the counterparties immediately and fully disclosed?
Failure
to answer these questions will feed the populist rage that is
metastasizing very quickly. And it will raise basic questions about the
competence of those who are supposedly guiding this economic policy.
Spitzer has never been much of a fan of Geithner's, telling Vanity Fair back in December:
Tim is a good guy, but he’s not a thinker. He’s the status quo.
Spitzer is obviously not the Democratic Party heavyweight he once was ("It sucks," he's said of his life as a mere Slate columnist, "I used to be the governor of New York"). But it'll be interesting to see if any other prominent Dems follow his lead on this.
--Jason Zengerle
.jpg)
Print
COMMENTS (6)
Say what you will, at least Spitzer's SOX-compliant. According to Alexis DuPre, anyway.
Say what you will, at least Spitzer's SOX-compliant. According to Alexis DuPre, anyway.
Bingo. Spitzer nailed it dead on. Too bad he couldn't keep his fly zipped.
I saw that the White House press sec. says that the president has "full confidence" in Geithner. Isn't that what college AD's say about embattled coaches right before they're fired?
Bingo. Spitzer nailed it dead on. Too bad he couldn't keep his fly zipped.
I saw that the White House press sec. says that the president has "full confidence" in Geithner. Isn't that what college AD's say about embattled coaches right before they're fired?
I had the same thought this morning about Goldman et al. bearing part of the losses. It is too bad that the moralist E. Spitzer mimicked a practice that he prosecuted. So I guess Andrew Cuomo is the new Spitzer.
I had the same thought this morning about Goldman et al. bearing part of the losses. It is too bad that the moralist E. Spitzer mimicked a practice that he prosecuted. So I guess Andrew Cuomo is the new Spitzer.
george:
Wouldn't it have been great if Eliot Spitzer had never screwed around and Obama selected him to run Justice, Treasury AND the SEC?
So, have any of his questions been asked....or answered....in Congress yet? in the White House?
Or is it still Pelosi and the Obama administration's policy that we should not go back and dredge up the past because so many Democrats got their start [and their loot] there? Instead we should focus on the present. If only to make certain that crony capitalists in the future don't get nailed either.
How this unfolds will expose what Obama is made of....and who he works for. Either he holds accountable those responsible for the train wreck or he wiggles out of it ... view full comment
george:
Wouldn't it have been great if Eliot Spitzer had never screwed around and Obama selected him to run Justice, Treasury AND the SEC?
So, have any of his questions been asked....or answered....in Congress yet? in the White House?
Or is it still Pelosi and the Obama administration's policy that we should not go back and dredge up the past because so many Democrats got their start [and their loot] there? Instead we should focus on the present. If only to make certain that crony capitalists in the future don't get nailed either.
How this unfolds will expose what Obama is made of....and who he works for. Either he holds accountable those responsible for the train wreck or he wiggles out of it by reminding us over and again, "I was really REALLY angry at what they did...I feel your pain."
Similarly, he will either push for a comprehensive refurbishment of the regulatory departments or he will slap on another coat of Reid/Pelosi paint on it and ratchet down the revolving door from breakneck to brisk.
george walton
Bingo - that's my guy. He's my hero, warts and all.
He's such a wasted resource right now. Admittedly, it would be nice if hard ass former AGs would stay away from committing felonies, but hey - no one is perfect.
Bingo - that's my guy. He's my hero, warts and all.
He's such a wasted resource right now. Admittedly, it would be nice if hard ass former AGs would stay away from committing felonies, but hey - no one is perfect.
Liberal reformer, why, oh why must you persist in making statements such as, "I had the same thought this morning about Goldman et al bearing part of the losses?" Seriously, learn the meaning of a scoop. If you think something but don't tell anyone until after Eliot Spitzer says the exact same thing, you're better off not mentioning it at all. You lost any claim to the thought the minute Spitz scooped you. I mean, you can tell your wife or your best friend and make some pleasant banter about how great minds run in the same circles, yadda yadda yadda, but around here where none of us really know one another and no one can vouch for your (or my or anyone's) tr ... view full comment
Liberal reformer, why, oh why must you persist in making statements such as, "I had the same thought this morning about Goldman et al bearing part of the losses?" Seriously, learn the meaning of a scoop. If you think something but don't tell anyone until after Eliot Spitzer says the exact same thing, you're better off not mentioning it at all. You lost any claim to the thought the minute Spitz scooped you. I mean, you can tell your wife or your best friend and make some pleasant banter about how great minds run in the same circles, yadda yadda yadda, but around here where none of us really know one another and no one can vouch for your (or my or anyone's) truthfulness such statements come off as so much hot air.