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BOOK EXCERPT - Geithner's Temper And Transparency Exposed: "No one has ever made the banks disclose the type of shit that I made them disclose..."

Former SIGTARP Neil Barofsky's new book, Bailout, is in pre-release, and it doesn't look good for Tim Geithner, who apparently made an enemy of the wrong former prosecutor.

As for Geithner's claim of 'unprecedented transparency' that you will read below, consider that, while Inspector General, Barofsky published a report that found Geithner and Stephen Friedman personally responsible for tens of billions in losses to taxpayers for NOT negotiating with AIG counterparties, and then covering it up.


Mark Gongloff - HuffPo

"I never would have imagined that one day one of the most powerful government officials in the world would be dropping f-bombs on me."

That's Neil Barofsky's response to being on the receiving end of an epic tantrum by Treasury Secretary Timothy Geithner in the fall of 2009, after Barofsky dared to suggest that Geithner had perhaps not been the most transparent Treasury secretary in the entire history of the country.

"Neil, I have been the most fucking transparent secretary of the Treasury in this country's entire fucking history!"  Geithner erupted, in an episode that had Barofsky wondering if Geithner was going to "throttle" him.  At the time, Barofsky was the special inspector general in charge of oversight of the Troubled Asset Relief Program.

It's one of the juicier episodes in Barofsky's new book, "Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street." The book recounts Barofsky's front-row view of how the Bush and Obama administrations handled the bailouts of banks, auto makers and homeowners after the financial crisis.  Few players come off looking great in the book, but Geithner and his Treasury Department are cast in a particularly bad light.

"I said that I thought our capacity as a nation to deal with what could be a continuing financial crisis was being undermined by a loss of faith in government," Barofsky writes. "Then I said that the current loss of government credibility could be traced to Treasury's mishandling of TARP."

"Geithner got dramatic," Barofsky writes: "'Neil, you think I don't hear those criticisms?  I hear them. And each one, they cut me,' he said, pausing and then making an emphatic cutting motion with one hand as he said 'like a knife.'"

After a Geithner subordinate in the room, Herb Allison, expresses personal offense at Barofsky's suggestion that Geithner has not been fully transparent, Barofsky responds:

"I am not suggesting that the secretary has failed in transparency, I am stating it.  Mr. Secretary, you've failed to be sufficiently transparent, and that is one of the reasons why people are so angry."

And that's when the ticking time bomb that was Geithner erupted, says Barofsky:

"'No one has ever made the banks disclose the type of shit that I made them disclose after the stress tests. No one! And now you're saying that I haven't been fucking transparent?'"

At that point in the meeting, Barofsky says, "Geithner looked as if he was going to get out of his chair and throttle me.  As we parried back and forth, Geithner repeatedly reached a pitch of anger, regaling me with detailed expletive-filled explanations that established my apparent idiocy.  He would then calm himself down and give me a forced, almost demonic smile."

The meeting ended on a relatively cordial note, but that did not change Barofsky's assessment of the meeting: "It was the weirdest meeting of my life."


DB here.  Here's an excerpt from Barofsky's report on Geithner and AIG.

“As you know, in late 2008 AIG was attempting to negotiate a haircut for banks that held $62 billion in CDS from AIG.  AIG was reportedly seeking to persuade the banks to accept haircuts of as much as 40 cents on the dollar in order to retire these CDS contracts.”

It is also disturbing that, at the time this secret deal was made, FRBNY Chairman Stephen Friedman, a member of the board of Goldman Sachs, purchased more than 50,000 shares of GS before knowledge of the FRBNY’s bailout of AIG counterparties became public knowledge.  According to news reports, this transaction has earned Mr. Friedman over $5 million in profit.

Finally, according to one AIG executive quoted in news reports, the FRBNY may have attempted to manage public disclosure of its decision to pay AIG’s counterparties at par by pressuring the company not to file pertinent documents with the SEC.

They’d tell us that they don’t think that this or that should be disclosed.  They’d say, “Don’t you think your counterparties will be concerned?”  It was much more about protecting the Fed.


Yves Smith has additional details on Barofsky's book...


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Reader Comments (27)

While I love posts like this, they are beginning ro make me suspicious of the original source.

As an initial matter, though, it would seem that Bailouts are quite the hot topic. Who on earth could have predicted this?


Such posts always seem to promise gooey and incriminating details, which somehow never seem to surface.

The real thing though is how Ferguson seems to whiff on mortgage foreclosure fraud. Real estate accounts for 50% of Wall Street's value directly and 75% if we add in side-bets.

It"s just awfule fucking odd that the subject of fraud comes up so often, but the 5-yr statute of limitations applies, and yet foreclosure fraud oh-so rarely is discussed, especially since this brand of fraud carries no statute of limitations at all, akin, as it is, to murder.

You'd think that'd be a more common topic, but alas.
Jul 20, 2012 at 7:47 PM | Unregistered CommenterCheyenne
Anybody check Matt Taibbis piece on the Muni Bond bid rigging? Just read it. I can't really think of anything to say about this other than Holy S**t. Of course they get off with fines which I assume will come back to us in some fashion. How much is enough?
Jul 20, 2012 at 8:00 PM | Unregistered CommenterSKINFLINT

Yes, I read it about a month ago when it came out. The fraud is shocking. I will get it posted here eventually.
Jul 21, 2012 at 3:12 AM | Registered CommenterDailyBail
Barofsky Announces Formal Investigation Of NY Fed 'Misconduct' In AIG Bailout

Jul 21, 2012 at 3:42 AM | Registered CommenterDailyBail
GAO Report Says New York Fed Didn’t Cut Deals On A.I.G., Raises Questions About Geithner's Honesty

Jul 21, 2012 at 3:43 AM | Registered CommenterDailyBail
DB, Bloomberg has an article today that talks about the muni bond rigging. I won't try to post because quite frankly I am a dumb ass. Hopefully the MSM will pick up on this. Just seems that the fraud is just so huge that it seems impossible to comprehend.
Jul 21, 2012 at 8:42 AM | Unregistered CommenterSKINFLINT
I don't know about anyone else, but that Geithner photo makes me really want to sock Tim in the face.

I haven't wanted to punch anyone out like that since Michael Deaver, that officious ingrate.

Therapy and group sessions, btw, only make this condition worse.
Jul 21, 2012 at 9:36 AM | Unregistered CommenterCheyenne
I don't know about anyone else, but that Geithner photo makes me really want to sock Tim in the face. I haven't wanted to punch anyone out like that since Michael Deaver, that officious ingrate.


That's exactly why I posted it. I looked for the photo that might best express Geithner's face while he was screaming at Barofsky. I would say that Neil showed restraint in not popping Turbo.
Jul 21, 2012 at 11:10 AM | Registered CommenterDailyBail
Yea that's it DB. I hope that this will lead to more charges being bought. As Bill Black explained on Ratigan's show, try and work to the top of the food chain and hope that there are enough white hats doing good things.
Jul 21, 2012 at 11:51 AM | Unregistered CommenterSKINFLINT

Maybe this will help on posting links:


And thanks for the heads up on the Bloomberg piece.
Jul 21, 2012 at 12:02 PM | Registered CommenterDailyBail
An investigation must be made and an audit done on Geitner's U.S. Treasury to vet or dismiss the allegations made by the former Chief Operations Officer for Baers Bank, Switzerland. He alleges most of the U.S. Congress along with the judiciary have trust accounts at the Vatican Bank funded by the U.S. Treasury. Chief Judge Roberts has a billion dollar trust account, he claims, and all of these illegal accounts have been funded by Geitner's U.S. Treasury.

This buying off of Congress and the Judiciary certainly explains why elephants in the room go unnoticed and amazing piles of excrement get swept under the rug.

The government is rogue, and one of the chief cockroaches in the mix is Geitner at the U.S. Treasury. He must be investigated.
Jul 21, 2012 at 2:04 PM | Unregistered Commenterbeijingyank
He makes Bob Beckel sound like a class act
Jul 21, 2012 at 2:38 PM | Unregistered CommenterReaganite Republican
Geithner should get his lower teeth fixed....he looks like a commoner.

And i just adore that hairdo of his....

other than that, he would look a lot better with a rope necklace and some blue makeup.
Jul 21, 2012 at 3:00 PM | Unregistered Commenterdogismyth
Looks like he is getting a wedgie!
Jul 21, 2012 at 9:02 PM | Unregistered Commenterjohn
The Wall Street Journal did a report in 08 about the behavior of some of the politicians that travelled over seas to Europe just before the storm hit. Pelosi went to the Vatican and had a chat with the Pope. For some reason I don't believe she went there to hear Pope Benedict scream at her for her belief in the slaughter of the innocents. Senator Specter went there just before the storm as well. Can't remember why he said he went there. Just betting that the Pols knew where to hide the money and protect themselves while we got crushed.
Jul 21, 2012 at 9:04 PM | Unregistered CommenterSKINFLINT
Geithner gets it from the neocons of Bush43 when they worked for Sen. Scoop Jackson in the 1980s. The significance is that IPAC planning under the banner of 'Free Israel' was a shuck to draw attention and study from the real House of Cockroach, The City of London. Israel is the Rothschild's Jonestown, complete with carefully crafted religious absolution for anyone of ovine, or the random killer bent or interest in children and the occasional four legged beast. They are being given a place in the mercenary infantry and special ops department. and basic service industries. That way, England proper can maintain plausible deniability for accusations of wrongdoing. LIBOR eclipses these efforts. See how they run.

I imagine that is the look that Geithner had to use on Richard Perle to keep him at bay back in the good old days of the Vancouver Club.
Jul 22, 2012 at 4:05 AM | Unregistered CommenterHoward T. Lewis III
One thing is clear today...
Whether it is Wall Street Goon's or those from Wall Street who first destroyed Wall Street but transferred to Obama's (I have a Dream) Dream Team that then screwed the US Government up with TRILLIONS in new debt. Also, The Bank's who launder Billion's in Drug Cartel monies. LIBOR, HSBC, Well's Fargo, CitiGroup, Goldman Sachs, J.P. Morgan.. Hell ALL OF THEM!

All these Idiot's belong on PRISON! PERIOD. Instead of little fines that has normal American's had done this WE'D be in Prison for Life. Yet these Bankers, and Bernanke all walk among us. This is no different then Oliver North who after operation a Shadow Government that instead of being NAIL and sent to prison, Just like Bush, Cheney, Powell and others. They all go on to write Book's on how to did it and got away with it.

Like the Bush administration after Lying about Iraq and the Illegal Invasion and Murdering 1,000,000 Iraqi's and some under the most ex stream cases of torture like smashing Iraqi boy's testicles in front of their Fathers who also were being tortured. These War Crimes are hailed as simply 'Being an American."

Then to expose these CRIMES against Humanity like Obama's "Kill List" and the droning of Emergency aid workers (a Geneva War Crime) as it is clear that those bombed are OUT OF THE WAR. Yet not only are they Bombed but the Funeral's too are bombed. Since it is now Legal to Kill US Citizen's. I now wait for the news of Funeral's in America who the person was murdered as a Militant, That Obama will apply the same RULE of OBAMA LAW here and Drone family who attend the funeral's saying that by association these too were Militant's?

Then in 2005, Hillary Clinton said that the video game "Grand Theft Auto" was too Violent.
So, I often wonder when we read headlines such as… These.
US Arms for Al Qaeda in Syria seized in Lebanon.
US and Al Qaeda in full agreement on Syria.
US say’s it can use Al Qaeda in Syria temporarily.
CIA sending Arms to Al Qaeda rebels in Syria.
Al Qaeda joins the Syrian Rebel’s.
Adopt a Syrian Rebel. Yes, You too for a $1.00 a day can do so. WTF!
Al Qaeda joins the Syrian Rebellion.
Al Qaeda urges Muslim’s to join Syrian Rebel’s.
Al Qaeda “FLAG” now flies at Benghazi Courthouse.

Then we have the US State Department.
Now trying to de-list the Mujaheddin (MEK) from the list of known Terrorist’s organizations.

Vice President – Joe Biden say’s:
“The Taliban aren’t enemies of the US.”
V.P. Joe Biden’s statement is confirmed by the White House.
Biden’s Statement also “Welcomed by the Taliban.”
Yet even though the Taliban continues to attack NATO bases and the US Embassy.
Then having also Killed 32 of the Seal Team 6 .

Our Government is now also Releasing top Taliban leaders from Bagram Prison in Afghanistan and will also soon release more from GITMO.
And now folk’s, Here’s one you’ll really like…
Screw Democracy!… Obama Administration Will Give Muslim Brotherhood $1.5 Billion in US Aid

Real Truth and propaganda from Syria is being hid by main stream media, But it is clear that the US is on the ground in Syria. SOLDIER’S FACEBOOK POST RAISES QUESTIONS ABOUT U.S. SPECIAL FORCES IN SYRIA

I thought this was interesting of all War Propaganda that came from Libya as Hillary Clinton such as calling Gaddafi an “EVIL DICTATOR” How could he…then be set in March 2011 to receive an Humanitarian Award? Gaddafi Set To Receive UN Humanitarian Award In March 2012.

British forces and Al-Qaeda fighters side-by-side in Libya.
Shock: America Fighting On the Side of Al Qaeda in Libya.
Libyan Rebel’s meet White House officials. You said what?
Libyan Rebel leader say’s, His fighters have Al Qaeda ties.
Yet here's the CATCH...
Why doesn't the U.S. Government NAME who our Enemies really are?
Because Bradley Manning is charged with "Aiding the Enemy" Yet from above, We can see that This Administration is and has been aids the above mentioned groups who ALL are listed as Terrorist's. So WHO did Manning AID? Tell US Who?

Then like Julian Assange said, "Wiki-leak's IS doing the Job's of Reporters/Journalist's who stopped doing their Job's a long long time ago. That is a Fact. I also think the play on words of "National Security" trump's telling the TRUTH. We my sibling's and I told a LIE... We got the "Shit" beaten out of us for them lies. We turned out pretty damn good too. Yet it seems all News today is 100% Propaganda.

Which is no different then causing the death's of hundreds or thousands in Syria and calling it a Humanitarian Issue, while comparing what is going on in Gaza as an example of Rwanda or 21st Century Prison Camps. Networks are loosing their viewers because people have woke up to the mass lies being disseminated by the alleged Press. I still remember watching reporters trying to get the scoop and dashing to the phones to be the ones to break the news. Now things have to be "Cleared" by the Pentagon. So there is no way to keep our officials Honest, If there IS such a thing nowadays?
Jul 22, 2012 at 7:12 AM | Unregistered Commentermj.williammartin
I know what you mean. I hate books. People who read modern books are stupid. The only good books I've read this year are Nomi Prins' It Takes a Pillage and William Black's book about the S&L crisis.

What pisses me off about books is that the people who read them don't go out and start riots. Instead, they buy a cappacino at the local mart, where other shitheads reiaffirm theiir uselessness. All these people do is talk politics, and it's ridiculous. They LOVE the status quo. Why not launch a bottle rocket in the wine store and see what happens?

Eggheads are the most supercilous people on the planet. You telll then that Wall Street is stealing everyone's money, and these assholes' reaction basically is "yeah, it"s always been like that," which (1) is a lie. And (2) fails to absolve these shitheads from using a Chase debit card.

All right. My squirt gun is loaded with piss. I'm going to the mall.
Jul 22, 2012 at 9:46 AM | Unregistered CommenterCheyenne
What next????

Private Student Loans Work Like Subprime Mortgages

Private lenders offered student loans without confirming that recipients could pay them back -- then sold them to investors, thus protecting the lenders against defaults, a government study finds.

Sound familiar? It should: It's a lot like the process that caused the subprime mortgage crisis. Some $8.1 billion worth of private loans -- more than 850,000 cases -- are now in default, the AP reports. "Subprime-style lending went to college, and now students are paying the price," says Education Secretary Arne Duncan.


Think about your pension plan, your 401K loaded up with more crap loans that are about to go bust

The looming student loan bubble – Almost half of all student borrowers were not making payments. 1 out of 4 in debt repayment past due on student debt.


and rather then going after the perps at the banks who own him here's obama's plan.

Student Loan Bankruptcy Forgiveness

The Obama administration wants to allow people to get rid of their student loan debt through bankruptcy —


Jul 22, 2012 at 12:17 PM | Unregistered CommenterLiberatedCitizen
I made a wanted poster of with this picture and posted at several community bulletin boards.
Jul 22, 2012 at 3:06 PM | Unregistered CommenterSKINFLINT
What type of shit did Timmy the Great make the banks disclose and does it even compare to what Mark Pittman forced the FED to disclose? I think not, if anything he conspired with the banks to keep information from Congress and the American People.

Put him in jail where he belongs.
Jul 22, 2012 at 4:16 PM | Unregistered CommenterSagebrush
Right on, Sage. All seeing Geithner's mug makes me want to do ia cut his head off with a shovel. Is that bad?

Somoene upstream said they adore his hairdo. That is perfect.
Jul 22, 2012 at 5:13 PM | Unregistered CommenterCheyenne
Do NOT underestimate the influence of freemasonry in government. It is THE network having B. Clinton doing the keynote address one election and being the nominee the next and having Obama giving the keynote address and being the nominee the next. KNOW THINE ENEMY. By oath, freemasons DO NOT prosecute each other in courts or by police action if at all possible. This is part of the creed. The 'Grand Patron' , or head of freemasonry at this time, is the queen of England. It was Prince Edward previous to queen Elizabeth. THIS MATTERS. THIS OBSERVATION fits in describing the pattern that fits for the recent manifold attacks on the U.S. , financial attack being the most manifest and ongoing. DO NOT IGNORE THE REST. It is not the privilege of stock brokers to roll in others money while some of us are being confronted and threatened by strangers giving aggressive 'freemasonic handshakes' after trying to stare us down for a week or more. Military personnel are NOT free to express their information and views under penalty of demoting or fragging(like Pat Tillman). Geithner was in with the Bush41 and Bush43 neocons, which means he IS part of the bigger picture. Judging from his speech patterns and side-of-the-mouth presentations, he is giving listeners a 'snow job'. He has been associating with some very sick violent people over the past 30 years , and judging from his demeanor and report of his 'singing like a bird' when recently arrested by the FBI for questioning, fears for his life.

Come home Timmy. We will aggressively help you if you still want to come clean. You are probably right on your life being in danger because of the Shadow Government you decided to go with. Start writing it all down. From The Vancouver Club in 1980 to date. All of it so we all can heal. And keep your head down. Even if you do not believe your life is in danger with these people, I do.
Jul 22, 2012 at 5:30 PM | Unregistered CommenterHoward T. Lewis III
What makes me crawl, is his "Creepy Gay Fingers"........
Jul 22, 2012 at 7:25 PM | Unregistered CommenterTexas Dar
"Is that bad?"
Not as far as I'm concerned Cheyenne, and the duller the shovel the better.
Jul 22, 2012 at 8:34 PM | Unregistered CommenterSagebrush
Take a few minutes to watch this video and see how stimulus money ended up in the hands of Solyndra etc..

TWIB: Paul Gaynor, CEO of First Wind



(NECN) - On This Week in Business, Paul Gaynor, the CEO of First Wind talks about the upturn in the IPO market and his meeting in Washington this week with Treasury Secretary Geithner and Energy Secretary Chu about the role stimulus money has played in helping his business.

note: at about the 1:30 minute make he mentions A123, the company in financial trouble that the energy department refuses to comment about. I have commented extensively about First Wind on the Green Energy Blues Thread.
Jul 24, 2012 at 8:52 PM | Unregistered Commenterjohn

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