Think Timothy Geithner will be implicated in the LIBOR scandal?

[Junkdrawer]

After floating a few complex schemes to have government buy the bad loans on the Big Bank's books, it seems it was decided to have the FED help the Big Banks "earn" their way out of the crisis.

What if monkeying with the LIBOR was part of that plan?

Keep an eye on this aspect of the story. In an election year, it could be a biggie.

[democrat_patriot]

1. Except Geitner is in "the 1% club". He's safe.

Maybe he steps down after / or because of November election - to go on to be a member of 12 Boards of directors making 30-50 million a year.

[Occulus]

2. Some silly person alerted on this.

Jury voted 0-6 to leave it, as we should have.

Sorry, alerter- you just got spanked.

[Junkdrawer]

4. Not surprised.

Thanks

[AnotherMcIntosh]

8. Good.

[Junkdrawer]

10. Just look at the timing of this scandal....

Complex scandal that will take months to peak starts to hit the press around the beginning of July.

Get in front or get buried. Head in the sand is not a good idea.

[rhett o rick]

14. Silly?? This is series schtuff. The Neighborhood Watch is just trying

to keep DU pure and wonderful and keep the hoodies out. Criticism of Geithner might indirectly bring about the downfall of the Pres reelection.

[Junkdrawer]

3. A quick Google says I'm not the only one thinking this....

So now disgraced former Barclays chairman Bob Diamond claims that, at the behest of unnamed “Whitehall officials,” the Deputy Governor of Bank of England pressured him to go along with a scheme to get the headline Libor rate down below the lending rates banks actually charged. That’s right, the very day Diamond was to testify before Parliament in its Libor investigation, an exculpatory email just happens to surface.

For the moment, though, this email remains unverified. Deputy Governor Paul Tucker denied the story and offered to testify to his side of it.

If we assume Diamond is actually telling the truth (not always the right thing to do), then, I have at least two questions. First, which “Whitehall officials” would dare suggest to the BOE’s number two man, that he pressure bankers to commit what amounts to fraud? The Chancellor of the Exchecquer, or even the Prime Minister? If the email turns out to be genuine, we are talking about very big names rather than junior assistant flunkies.

Secondly, who would even come up with an idea like this? My money is on US Treasury Secretary Tim Geithner. Fed Chairman Ben Bernanke wouldn’t surprise me either.

This is pure speculation on my part, of course; as I say, the email is unverified, and neither of their names has yet come up in evidence. But manipulation of Libor would be very consonant with the Geithner/Bernanke policies of bailing out banks and keeping up confidence in the banking system.

...

http://www.theinsightfultrader.com/was-libor-rigging-scandal-made-in-the-usa/

[Fumesucker]

5. His personal risk is pretty close to zero, far too well connected to fail..

The political risk on the other hand might be somewhat greater if Timmeh turns out to have been less than fully prudent.

[Junkdrawer]

7. If Tim is implicated, next is "What did the President know and when did he know it?"...

Great stuff for election years.

[Karmadillo]

6. Please. Don't divide us. Look forward, not backwards. We're all in this together. Go Team!

[Warpy]

9. I don't honestly think it would matter at this point

because most people look at this as a high level accounting scandal, more of the same old shit, and then check what the Kardashians are doing or look for a new Snooki ultrasound. They have no idea how fiddling LIBOR affected them financially and the "news" certainly isn't going to bother informing them.

What this will do is further weaken the confidence of the financial stratosphere in the whole derivatives casino. That casino is based on hot air, wishful thinking, and trust. Take away any of those 3 supports and it will begin to collapse quickly. Once it does, it's going to take every single bit of funny money with it, deflating everything in the process. It will be very ugly.

So Geithner will skate, for now, even if he's judged to be as guilty as Cain. However, every single bit of derivatives chicanery that has a light shone on it weakens the whole rotten system. He won't skate forever and he'll take all of us with him when he goes.

[riderinthestorm]

15. My a-political husband was incredulous that anyone would be "shocked!" that there's LIBOR fixing

When I was telling him the story last night over dinner, he just shook his head and said "of course they're colluding and fixing". When I spluttered and raged, he just shrugged. "Why would you think ANY of this stuff would be so sacred the banksters wouldn't touch it?"

And he's right. His faith in the banking system has been completely gone for a very long time. Whatever remnant of faith I had that enabled even a bit of emotion about this is totally gone.

I too, like Junkdrawer, now believe this is part of the elite financial PTB that have been manipulating markets and the Obama Admin is up to its ears in it. But this isn't a Dem or Rethug thing - it crosses all party lines - its a greedy 1%er thing.

[Huey P. Long]

11. I think he will be protected as long as possible, then if needed PARDONED.

[Tierra_y_Libertad]

12. Will he use the "I know nothing" defense or rely on Executive Privilege?

[scheming daemons]

13. implicating Geithner (or anyone) with absolutely no evidence whatsoever is something that

Freepers would do.

Please present some EVIDENCE... Anything... before creating a rumor like this.

[Junkdrawer]

16. As the scandal widens, Bankers seemed to be poised to say "The Goverment....

told me to do it."

Do you REALLY think Tim's name won't come up? And should we be blindsided?

[lamp_shade]

17. Uh.... no.

[obxhead]

18. Absolutely!

Right after they find where Hoffa is buried and where Elvis is hiding out.