Secretary of the Treasury Tim Geithner, who fortuitously eased his way out of the private sector just in time to retain the power to save his Wall Street friends, announced yesterday that he is willing to fire bankers who aren’t his friends in return for saving his bank. The Financial Times reports:
Tim Geithner warned on Sunday that the US government would consider ousting board members at American banks as a condition for giving the institutions “exceptional” assistance in the future.
The Treasury secretary said the Obama administration would be prepared to force out senior management to protect US taxpayers, and ensure accountability, as a condition for providing money to help banks restructure. “If, in the future, banks need exceptional assistance in order to get through this, then we’ll make sure that assistance comes with conditions,” Mr Geithner told CBS television.
Mr Geithner…denied a Washington Post report at the weekend that the White House was attempting to create bail-out plans that would exempt some companies from complying with Congressional measures aimed at limiting executive compensation.
Mr Geithner pointed out that the administration had replaced the management and board of other companies that had received “exceptional” help, including Fannie Mae, Freddie Mac and AIG.
Geithner has it backwards. Someone needs to fire him. His policies aren’t helping many people, let alone banks or the venerated taxpayer. And he generally only hires his old Goldman Sachs friends, continuing a multi-administration tradition.
Geithner’s posturing is getting old.