Tim Geithner

The Financial Crisis Inquiry Commission's report couldn't come at a better time. At a moment when it seems that Washington would rather forget what happened two years ago, it documents the opportunism, bad judgment, and criminality that crashed the world's economy once - and could again at any time. An interconnected web of Wall Street criminality, discredited ideology, and politicians chasing big money - along with a surprising amount of executive incompetence - has caused continued suffering for millions. At a time when the nation's capital is convinced that CEOs need appeasing rather than policing, the FCIC report is a badly needed return to reality.

Wall Street executives weren't mentioned in the State of the Union or the Republican response. But their actions caused this crisis, and they can't be ignored politely like tipsy uncles at a family wedding. The only way to prevent the next crisis is by understanding the last one - and then taking the right actions.

More »»

While the Dodd-Frank Wall Street reform bill did too little to address the problem of “too big to fail” banks, one of the big wins for reformers was the bill’s strong derivatives chapter which drags risky “over the counter” derivatives trades out of the shadows and into the light of day.

Reformers won strong provisions for clearing, margin and transparency, which will force the big banks to put real money behind their bets. Reformers also succeeded in securing mandatory position limits for key commodities that will protect consumers from price spikes caused by excessive speculation.

But now that the Wall Street reform bill is in the agency rulemaking process, bank lobbyists are back in droves, descending on regulators in an attempt to force giant loopholes into the law – loopholes worth billions of dollars for the big banks. more »

More »»

Now that Larry Summers is leaving, the President has a decision to make. His choice of a replacement will send a signal about the next two years of economic policy. That signal can restore consumer confidence and reinvigorate the electorate, or it can lead to even more discouragement and despair. Today unnamed Administration officials floated the idea of naming a corporate executive to the position. That's a trial balloon that should be punctured immediately.

The thirty-year-old law school graduate who asked the President yesterday, "Is the American dream over for me?" might interpret a choice like that as a 'yes' - unless he also happens to be a Fortune 500 CEO. Fortunately, there are much better candidates to be found elsewhere. more »

More »»

Picture this: You're lying in the dark with a broken leg. Somebody comes by every couple of days to give you water and a little food, but you're wasting away. Suddenly a figure appears holding a candle. In the flickering light we see Tim Geithner's face. "Hey, there!" He says. "Do you realize that if we hadn't acted so promptly, both of your legs would be broken? Good news, huh? more »

More »»

It's looking like the SEC/Goldman Sachs lawsuit could open up a whole new can of worms, one that Tim Geithner and some bank executives aren't likely to be very happy about. The story's about AIG and I used to work there so, as much as I like to stay out of the story, a little personal background is in order. We'll do the story first and then get to the personal stuff. more »

More »»

Do homeowners who are underwater on their mortgages deserve to lose their homes? more »

More »»

What secrets are hidden in the Federal Reserve's trillion-dollar shadow? Economic recovery depends on confidence, and confidence requires knowledge. But senators like Chris Dodd and Judd Gregg don't want us to have that knowledge. They don't even want it themselves. more »

More »»

Treasury Secretary Tim Geithner delivered a populist stemwinder of a speech the other day, bringing his rhetorical A-game with comments like these: "Listen less to those whose judgments brought us this crisis. more »

More »»

What a week. Call it the Shock Doctrine in reverse: The Massachusetts election and yesterday's Supreme Court ruling may force the Democrats to move to the left to ensure their political survival. They're now faced with a choice they clearly didn't want: forcefully reject the corporate agenda, or risk losing to opponents who can attract an unlimited flow of corporate dollars. more »

More »»