Tim Geithner Admits Banks Bailed Out With Rigged Libor, Costing Taxpayers Huge Amount , page 1

Tim Geithner Admits Banks Bailed Out With Rigged Libor, Costing Taxpayers Huge Amount

www.huffingtonpost.com

Timothy Geithner claimed on Wednesday that the government had no choice during the financial crisis but to lend to banks and AIG using an interest rate, Libor, that everybody knew was flawed.

Call it a back-door bailout: By using an artificially low Libor, the government saved the banks and AIG millions, maybe billions -- and cost the taxpayers the same amount.

The use of Libor in the bailouts also rubber-stamped that hopelessly manipulated interest rate as a market measure, raising still more questions about just how worried Geithner and other regulators really were about it.

(visit the link for the full news article)





Related News Links:
blog.alexanderhigg ins.com
www.ritholtz.com

Many people haven't paid attention to the LIBOR scandal and many touted that the lower rates helped people. Well, here is one thing many never thought of.

Those artificial bond rates are the ones the banks used to set the interest rate on their bailouts! This is not just for the bailouts that are above the board and on the table but it also includes those short term loans and other financial instruments the FED used at a tune of more then $16 trillion dollars! This a back door ripoff not bailout!

www.huffingtonpost.com
(visit the link for the full news article)

reply to post by fnpmitchreturns

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Flag and 2 stars op, I have been keeping tabs on this for awhile also. I just wander, if they are admitting to this, what are they still hiding?

In comparison, most people when they have commited many heinous acts, will when forced admit to the least of their actions openly. If this is the least of their misdeeds.......

Please let this be one of the few times that sombody is taking the high road and coming clean. If it is only the begining of the release of they misconduct then we are for all intents and purposes screwed, I mean big time, great depression looks like a missed day of work in comparison screwed.

Just imagine the result when every single American loses confidence in the ability of the dollar to buy products. People will start to barter work for goods and goods for goods. At that point, the inflation from all the debt plus all the paper printed by the FED behind our backs will hit the market at one time. The term used is HYPERINFLATION.

If this happens, we will be in the position of a wheel barrow of hundred dollar bills not buying a loaf of bread. It will seriously for all intents and purposes end this nation. We will havve a every man for himself scenario, once everyone realises the full extent of the problem.

I hope I am wrong, and I hope timmy the tax cheat is coming clean about the worst, but I think this is likely to be the least unfortunately.

reply to post by wwiilliiaamm

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Public employee pension funds are among the largest clients of the investment management industry. Who do you think runs their money? The people who run their money are the same people they demonize on a daily basis.

SEIU, every state's teacher's unions, Teamsters, AFLCIO all use external investment managers.

The largest public employee union in the country, CALPERS payed $1.115BN last year alone in external fees to over 100 of the largest and most niche investment managers in the world, some of that money run in the US, some run overseas. Of the costs to run the fund, external fees made up 90% of the fund's costs

www.calpers.ca.gov...

Oh, the vulture capital firms - those destroyers of the economy, the ones that have destroyed the economy and hurt the middle class? Public funds are not only heavily invested in private equity, but also hedge funds, derivatives and every other form of alternative investments

"Large public pension plans are pouring more money into private-equity funds, deepening ties between government workers and an industry currently under the harsh glare of U.S. presidential politics.

Big public-employee pensions had about $220 billion invested in private equity in September, or 11% of their assets, according to Wilshire Trust Universe Comparison Service, which tracks the holdings of pensions, foundations and endowments.

That is up about $50 billion from a year earlier, when such investments accounted for 8.6% of large pension funds' assets. A decade ago, pensions with at least $1 billion under management had just 3% of their money .."

online.wsj.com...

How's that for hyprocracy? If investment management gents are getting paid too much, then, were the unions honest and had integrity, they would fire them and run the fund themselves. Further, if they were being paid fees they deemed too large, they are violating their fiduciary obligation to the pensioners.

Who do you think runs these funds, some government employees? Get real. The people who run these funds are the gents in the Ferrari's, with their house in the Hamptons, the other in Aspen - the very people the union bosses rail against.

Every one of these pension boards have rank and file union representation on them - not just executives. Why do they hire these outside firms? Because they are better at delivering returns, thats why.

How about having the unions put their money literally where their mouths are and fire these Wall Street firrms, bring the money in-house and run it themselves. The reasons they won't do that is 1 - because they can't and 2 -because their rank and file would sue them, not being willing to accept a 2-3% maximum return they would receive from running it in-house.

Who can the Calpers rank and file thank when they have a comfortable retirement? The gents with the Ferraris, homes in Aspen and the Hamptons who are making several $M/year, thats who.

BTW, that champion of the working man, Richard Trumka, head of the AFL-CIO who rails against income inequality makes @$300K/year - 8 times the income of the average worker he represents:

"As President of the union, Trumka makes over eight times as much as the average American worker.

According to the Center for Union Facts, Trumka brought home a gross salary of $264,827 in 2010, plus another $18,513 in additional compensation, to represent his union. The union leader has earned well over $200,000 every year since he was promoted to Secretary Treasurer in 2003.

In 2011, Trumka earned $293,750.

According to the recent email from Trumka’s desk, the average American worker makes about $34,000 a year."

republicanredefined.com...

Get real about unions and by the way, the fact that the Trumpka quote is from a conservative site, his pay is, by law listed on the AFL-CIO annual financial statement and is by law public information

reply to post by dolphinfan

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I like the informaiton in your post but I think you have me a little off. I agree that many top dogs in the union are in on it. No question about it.

I also think that since they have a portion of the cash, they see much more cash that they want. The return on the pensions were low because of the economy, but also becasue the fix was in to lower the return. the books were cooked to givethe impression to the public that more money should go directly to wall street.

They have some, they want it all.

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