Posted on 11/02/2009 1:54:24 PM PST by FromLori
Video at site
We had professor William Black on TechTicker this morning. A former regulator who handled the S&L resolution, Prof. Black remains appalled at how this latest round of bailouts has been handled.
Case in point? CIT Group. Once again, the white knight who stepped in to save the company--the U.S. taxpayer--gets completely hosed.
It didn't have to be this way, says Prof. Black. And the man responsible is Treasury Secretary Tim Geithner.
Peter Gorenstein: Another one of the nation's largest lenders has filed for bankruptcy. On the brink for months, CIT filed for Chapter 11 protection on Sunday.
The prepackaged plan allows CIT to restructure its debt while trying to keep badly needed loans flowing to thousands of mid-sized and small businesses. The plan keeps CIT's operations alive and makes it possible for the company to exit bankruptcy by year's end.
But here's the bad news: While senior debt holders will only lose 30% of their investment, we, the U.S. taxpayer, will lose the entire $2.3 billion we lent the company this summer.
William Black, professor at the University of Missouri-Kansas City School of Law is dumbfounded. "We put ourselves on the hook in a completely inept way where we lose first. We lose entirely as the taxpayers."
Black, a former top federal banking regulator, blames Treasury Secretary Timothy Geithner for negotiating such a bad deal on behalf of the American public.
His argument goes as follows:
The government was in no way obligated to lend the struggling CIT money and, in fact, initially refused to provide it bailout funds. More importantly, being the lender of last resort, the government should have guaranteed we'd be the first to get paid if CIT eventually filed Chapter 11. By failing to do so, "it's like he [Geithner] burned billions of
(Excerpt) Read more at businessinsider.com ...
Hose Geithner!! Damn Obama and his entire Marxist circus!!
Why should Geithner care?
He doesn’t pay taxes.
Turbo-Tax Timmy strikes again.
Let's not forget that the Bush administration set the template for crony capitalism with TARP.
That is true. Peter Shiff was just asked about that as well
http://www.youtube.com/watch?v=3bcgwulssx8
But no one will support Ron Paul and even now they have gutted his bill soon the only thing left will be a Revolution I suppose.
Geithner couldn't handle Turbo-Tax and his own tax obligations and he became Obama's Treasure Secretary. Of course the anointed one can relate to stepping into a job one has zero credentials for ...
So Geither burned billions and shafted taxpayers? As Rush might say, wasn’t that the point?
Cantwell ?Not Sure? Why Geithner Still Has a Job
http://www.wikio.com/themes/Tim+Geithner
Geithner Watch
Do you seriously think it wasn’t at Obama’s behest?
Saudi Prince Alwaleed bin Talal is CIT’s biggest shareholder.
Interesting I suppose they would rather screw us taxpayers then him.
I believe that Bush was acting at Goldman’s and Morgan’s behest, and so is Obama.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.