TARP Watchdog Rips Tim Geithner (CNBC)

Christy Romero, TARP Inspector General, on CNBC last week.

'Geithner's use of Libor for bailouts is wrong.' 

'Libor is broken, unreliable, and remains subject to manipulation. Tim Geithner is putting taxpayers at risk.'

Treasury and the Fed are ignoring Romero, who told Congress yesterday that Libor should be removed from the bailouts immediately.  As an example, after Geithner took over at Treasury, AIG's bailout loan was changed from an 8% rate to 3%, based on Libor.  He told Congress that he doesn't know how much the use of an artificially low Libor might have cost taxpayers.

But it could be in the billions of dollars.

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Further reading:

SIGTARP Report to Congress (pdf)

Libor Is Useless, But That's Not Stopping Tim Geithner

Shahien Nasiripour Libor Bailout Story - Financial Times

Geithner Admits Banks Bailed Out With Rigged Libor, Costing Taxpayers Billions

Comments

[DailyBail]

Nicholas Mockford, ExxonMobil Executive, Shot And Killed In Belgium

http://www.huffingtonpost.com/2012/10/26/nicholas-mockford-exxonmobil-executive-killed-belgium_n_2021845.html?ref=topbar

Just happened.

[DailyBail]

Ex-CIA agent faces jail for exposing torture in agency's secret prisons

http://www.presstv.ir/detail/2012/10/23/268307/excia-agent-faces-jail-on-torture-leak/

[Epinoia]

These guys were playing LIBOR off of EURIBOR. Mortgages were pegged twice per year, 6 months apart, to LIBOR and EURIBOR. HOWEVER, LIBOR wasn't pegged on the same day as EURIBOR. When it came time to re-peg the LIBOR based mortgages, these crooks sloshed the funds over to EURIBOR -- thus causing people who had LIBOR based mortgages to see their monthly payments go up for the next 6 months. And when it came close to the time for the EURIBOR mortgages to be re-pegged for another 6 months, they sloshed the money back over to LIBOR (AFTER the LIBOR rate had already been established for 6 more months).

The answer to this sort of gaming is to make these sorts of mortgages absolutely illegal. The ONLY way to make them fair is to peg the mortgages to ROLLING LIBOR and ROLLING EURIBOR rates. Until it's set by a rolling average, this scam will continue.

[DailyBail]

Nine More Banks Subpoenaed in Libor Probe

http://www.foxbusiness.com/news/2012/10/25/nine-more-banks-subpoenaed-in-libor-probe/

[Miguel Grande]

They're worried about the interest on $6 billion?

In the mean time, in the real world, Geitner, Bernanke, Holder, Obama and the banksters are being sued for the return of $43 trillion in stolen TARP funds. They murder two toddlers in a vain attempt to cover it up.

http://jhaines6.wordpress.com/2012/10/27/jim-costa-updates-the-43-trillion-dollar-lawsuit-story-this-is-what-we-are-dealing-with-folks-j/

Spread the real news far and wide, folks.

[DailyBail]

Miguel

I saw the orignal CNBC report on the lawsuit last week. I wasn't impressed at first glance which is why I didn't post it. I will take another look. As for tying the death of the CNBC producers children to the story, that is just silly.