Geithner Appears To Have Violated The Law
The Market Ticker ® - Commentary on The Capital Markets
Posted 2013-01-19 21:04
by Karl Denninger
in Corruption
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Geithner Appears To Have Violated The Law
 

From the Fed Transcripts:

MR. LACKER. If I could just follow up on that, Mr. Chairman.

CHAIRMAN BERNANKE. Yes, go ahead.

MR. LACKER. Vice Chairman Geithner, did you say that they are unaware of what we’re considering or what we might be doing with the discount rate?

VICE CHAIRMAN GEITHNER. Yes.

MR. LACKER. Vice Chairman Geithner, I spoke with Ken Lewis, President and CEO of Bank of America, this afternoon, and he said that he appreciated what Tim Geithner was arranging by way of changes in the discount facility. So my information is different from that.

Oh I see.

Reuters has contacted Mr. Lacker who backed and in fact expanded his claim:

Jeffrey Lacker, the head of the Richmond Fed, originally raised the allegation during a Fed conference call in August 2007, and he stuck to his 5-year-old claim against the current U.S. treasury secretary in a statement provided to Reuters on Friday.

"From conversations I had prior to the video conference call on August 16, 2007, I was aware of discussions among a few large banks about borrowing from their discount windows to support the asset backed commercial paper market," Lacker said in the statement. "My understanding was that (New York Fed) President Geithner had discussed a reduction in the discount rate with these banks in connection with these initiatives."

If you or I were to do something like this we'd go directly to jail, especially if we traded on it, and it is clear that many people did.

If you remember, this was the infamous August 17th Discount Rate Cut that buried myself and a huge number of other people who were short (and correctly so) at the time.  The market inexplicably rose into the close on the 16th -- and then the hammer came down on the 17th before the open.

So may I ask two questions:

  • Why is Geithner not under indictment?

  • Why have none of the other FOMC members been held to account for misprision on this event, which they all heard on the conference call including the Chairman, and thus have all been aware of -- and done nothing about -- for the last five years?

Yeah. 

Mother should I trust the government?

Answer: Not as far as you can throw it.

Discussion below (registration required to post)
 

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User Info Geithner Appears To Have Violated The Law in forum [Market-Ticker]
Cvdoc
Posts: 163
Incept: 2009-06-11

Washington, DC
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There is no rule of law. The rich / powerful don't even have a trial and the MSM ignore matters. That's one of many reasons people are buying guns, buying gold and silver and opting out of the political process

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Few men desire liberty; most men wish only for a just master.
Sallust
Iou
Posts: 1025
Incept: 2009-03-16
A True American Patriot!
The Twilight Zone
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It's time for a flush!

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"When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it."- Frédéric Bastiat
Nomullet
Posts: 6821
Incept: 2007-11-11
Green
SW
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Discussing it is different than saying you are going to or when. (At least that's what an attorney would say)

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Don't confuse clear thinking with simplistic thinking.
--Nomullet
Randy123
Posts: 5776
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Green
Earth
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Which is why I refuse to invest anymore in the markets

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China is the Enemy. Wake Up.

New Normal. Same As The Old Awful.
Crzymorse
Posts: 1189
Incept: 2010-06-25

Maryland
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Was that discount rate cut the same one Kramer had his rant about. Bill Poole Shameful! Maybe the whole thing was preplanned rig job to ramp the market.
Satindoll
Posts: 27
Incept: 2011-10-20


Banned
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Just finished listening to Bill Still's documentary, The Money Masters.

Timothy Geitner, like BHO2 and his crony advisers - Christine Legarde, Leo Gerard, etc. - DO NOT work for the American people.

They work for an elite few Hell-bent on controlling the world and enriching themselves at the expense of everyone else.
Azusgm
Posts: 2398
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East Texas
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But at least Jon Corzine is in prison.
Kylafoon
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"You or I would go to jail for this." Yes, we would.
We are the "little people" with our "little people" laws.

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"...But whenever we see things done wildly, but taken tamely, then the State is growing insane..." - Gilbert Keith Chesterton 1910

"I found a flaw in the model that I perceived is the critical functioning structure that defines how the world works." - Alan Greenspan, October 2008
Bertdilbert
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So the shareholders of the Fed were tipped off that the Fed was going to make a move and allowed to profit?

So when the banks get bailed out by being in front, and take people like Karl's money and other traders, is that like a taxpayer bailout? Or does it not qualify as a taxpayer bailout since having massive losses for being on the right side of the market wipe out any taxes you would have otherwise paid? All that is too complicated, I am just going to pencil it in as theft.

Like the way Geithner was called a liar, "My information is different than that."

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Dear Euroland: Relax, Germany has a plan for your money!

Political Capital Defined: We are out of money but will tax our citizens for whatever it takes to "SAVE" the Euro.
Goforbroke
Posts: 5338
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Just call me 'Comrade'
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And the consequences of this will be ... ?1?

Meanwhile a bicyclist on Venice Beach is given a ticket for riding in the wrong lane because the cop's motorcycle ON A BICYCLE PATH was blocking him and he had to get around it.

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We have met the enemy and it is us. -- Pogo

Djloche
Posts: 3273
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Silver
In the Mountains
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Shouldn't this read as "Geithner Appears To Have Violated The Law Again"

he's a known criminal

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"If we wish to be free, we must fight! I repeat it, sir, we must fight! An appeal to arms and to the God of Hosts is all that is left us! Gentlemen may cry, "Peace! Peace!" -- but there is no peace. The war is actually begun! Our brethren are already in the field! Why stand we here idle?"
Iou
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A True American Patriot!
The Twilight Zone
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When plunder becomes a way of life for a group of men...

How much more are we going take? If it was just a few men that would be one thing but this is our entire government all the way up to the POTUS. How the hell do you begin to fight back? I'm tired on sitting on the sideline feeling helpless to stop it. I have do something but just don't know what I can do that'll make a difference. Prepping for the end of the world just isn't doing it for me...

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"When plunder becomes a way of life for a group of men living together in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it."- Frédéric Bastiat
Jake3463
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Allentown
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What has been will be again,
what has been done will be done again;
there is nothing new under the sun.

All government is based on fraud. They exist as long as the population is willing to go along with it. The best governments find ways to convince people to go along with it willingly, the worst use force to coerce the population to go along with it.

We are entering a time where the population has less and less reasons to go along with it, the question is in the next phase how the government responds to an angry population. Will it be "reform" or force.

Marvinmartian
Posts: 750
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Pasadena, CA
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At the time, the NYFED was headed by Mr. Geithner. I'm sure that everyone knows that the banks in the New York district own the NYFED and have representation on the board.

Mr. Geithner, as chairman of the NYFED was just making an informal report to his board. Nothing to see here.

/sarc
Bubbazanetti
Posts: 542
Incept: 2007-08-23

NOLA
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I had always wondered why the French Revolution was so horribly, completely over the top violent. Now I get it.
Lowbeyond
Posts: 16886
Incept: 2008-02-11
Green A True American Patriot!
CO aka West NJ/East CA
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About this | | close to just upping my w4 exemptions to 9 or whatever the max is and just never filing again

**** these people.

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Maybe it was a birdy bread-bomber from the future?!
Event_horizon
Posts: 2979
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I'm sure it will be a complete coincidence when he goes to work for one of the tipped-off banks after leaving the Treasury.
Maddymax
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PONZIVILLE
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time for hangings nothing less

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Ben's policy will lead to wage deflation and commodity inflation which will lead to the Greatest Depression and Uprising Ever.
Who needs TA we got POMO
Vernonb
Posts: 397
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State College, PA
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I hope Lacker has plenty of security. People that cross this current WH administration seem to suddenly die by "natural causes" when something like this comes out.

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"The welfare of the people in particular has always been the alibi of tyrants, and it provides the further advantage of giving the servants of tyranny a good conscience.”
-Alber Camus (1913-1960)
Duc888
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CT, the UNconstitution State
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Government is fraud. Government works for the banksters. Every day, week and every year you pay these guys salaries and bonuses. Every last one of them. So shut up. You PAY these people to **** you over. Got it?

;)

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...burp
Ptoemmes
Posts: 143
Incept: 2009-04-13

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Class action civil suit? Clearly you and others were materially damaged. Yeah, I know it's not a criminal action,

Rev4:4
Posts: 92
Incept: 2007-09-02
Green
State of Denial
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I remember this, I often refer to it as "the Great Bear ****ing of Aug 07". Happened shortly after I found the ticker.

And the sonofabitch that did this has been Treasury Secretary for the past 4 years.

Edit to add: Karl's rants that weekend were epic, I registered here shortly thereafter and even though I don't post much, this place has been a daily visit since.

Noodleman
Posts: 2389
Incept: 2008-11-01

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Ah come on, Karl. Over the years I couldn't count on both hands and both feet the number of times you've caught these **********'* breaking the law. Have any of them EVER paid a price for it? No doubt all of them laugh at this **** among themselves. All of them know that they're immune to the law that the rest of us must obey to the letter. When you live in a one-horse town where your brother is the sheriff, your uncle is the prosecutor and your dad is the judge you can pretty much laugh at the law. This is the harsh reality of it. We can beat our heads against the wall over it. But I really see no solution. How can we fight back? In most of the elections today we choose between Dracula and Frankenstein. So I would LOVE to hear some possible solutions. And, please, no one say email, write or call my congressman. Please. Spare me.

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"Ammunition beats persuasion when you are looking for freedom." Will Rogers, 4 Nov 1879 - 15 Aug 1935

Reason: grammar, spell.
Blurtman
Posts: 563
Incept: 2009-01-24


Banned
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What if armed citizens enacted a citizen's arrest of Geithner?

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I have a reading comprehension problem and the owner banned me for repeatedly displaying it after being warned.
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