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Who Told Tim Geithner To Go F*CK Himself?

I've posted this story a few times, but it never gets old.  The correct answer is Morgan Stanley CEO John Mack.

Upstairs, Mack was on the phone with Mitsubishi’s chief executive, Nobuo Kuroyanagi, and a translator trying to nail down the letter of intent. His assistant interrupted him, whispering, “Tim Geithner is on the phone—he has to talk to you.”

Cupping the receiver, Mack said, “Tell him I can’t speak now. I’ll call him back.”

Five minutes later, Paulson called. “I can’t. I’m on with the Japanese. I’ll call him when I’m off,” he told his assistant.

Two minutes later, Geithner was back on the line. “He says he has to talk to you and it’s important,” Mack’s assistant reported helplessly.

Mack was minutes away from reaching an agreement. He looked at Ji-Yeun Lee, who was standing in his office helping with the deal, and told her, “Cover your ears.”

“Tell him to get fucked,” Mack said of Geithner. “I’m trying to save my firm.”


CNBC Video:  John Mack tells the Geithner FU story...


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Reader Comments (13)

Here's the video from a talk at Penn. (That's where I first heard the story.) The good part is at about 15:15. Mack is a great story-teller - with that voice, especially, he reminds me of the people I knew growing up in NC.

Mind you, I wouldn't hesitate two seconds to claw back every penny of pay going back to 2004, give or take.
Jan 15, 2010 at 8:27 PM | Unregistered CommenterJames H
Plot thickens and the net widens. Friedman and Paulson will be "invited" to speak to Issa and House Oversight and Reform.

Not a bombshell, but may shed further light on Friedman's role, especially, for people who haven't been watching like we have.
Jan 15, 2010 at 9:06 PM | Unregistered CommenterJames H
it's HUGE NEWS james...and it's the first time i can say that WE, the daily Bail, had something to do with it...as you know i have been hammering the Stephen Friedman angle of the AIG payout at PAR story every time i have written on the subject...

I have emailed every story i've written on th subject to Reps. Issa and Towns, plus to the Oversight Committee staff with an introduction requesting that they call Friedman and Paulson to testify on these issues....

And lo and behold, last night it happened...i've never felt better about the work of this site than i do this morning...we actually made an impact...and strangely, the news came yesterday, which was the 1 year anniversary of the launch of the daily bail...

Now, here's what I want to know from Friedman and Paulson....

1) Who was at the meeting where the decision was made to save AIG...was Lloyd Blankfein included? if you remember, for at least a week leading up to the announced bailout of AIG in the fall of 2008, Paulson, Bernanke and Geithner ALL SAID PUBLICLY that there would be NO BAILOUT for AIG...every day they were asked about it, and the response was always, NO SUPPORT for AIG...they are on their own...

Then suddenly, we wake up the next morning and the AIG bailout has been announced,,,FULL GOVERNMENT BACKSTOP...

So what happened to change their minds SO DRASTICALLY? I mean for a week it was emphatically NO BAILOUT -- aig and its counterparties are ON THEIR OWN, then suddenly it became YES BAILOUT literally overnight...and then we learned (though much later) that counterparties would get 100%...and then lastly we learned, that TREASURY ACTIVELY SOUGHT to COVER UP the fact that Payouts were made at PAR...

Now, through sources, we have heard that on the night of the decision to bailout AIG there was a meeting of minds...and that perhaps Blankfein was at this meeting...
Jan 16, 2010 at 12:43 PM | Registered CommenterDailyBail
Steve, I had no idea you had been sending your stuff to Issa and Towns. Great work. Issa has been on the war path for months and Towns has impressed me with his fairness and common sense on these issues. Just fantastic, fantastic work. I didn't think that anyone in congress even knew who Steve Friedman was. Now they will.

BTW, my understanding was the Blankfein WAS absolutely at that meeting. It's been thrown around as fact in many conversations I've heard over the past 15 months, and I had assumed it was true. Otherwise, wouldn't Lucas Van Praag already be telling everyone that it's just a conspiracy theory? Maybe I've missed something somewhere.

Anyhow, I have to admit that I did my own version of an end zone dance when I saw Friedman's name right there on the Yahoo news page. Because that means that more and more people, at least in congress, will start to see how deep this sh** goes. Very gratifying to know that you had a role in making it happen.

Mazel tov, indeed.
Jan 16, 2010 at 1:09 PM | Unregistered CommenterJames H
thanks for the words...

as for Blankfein at the meeting to save AIG, i haven't taken the time to look into it this morning any further...been doing background reading for friedman paulson story i'm going to write...

but my memory tells me that there have been conflicting accounts...some say there was a 4 person meeting and blankfein was there...others have said not...i really don't remember it with enough certainty to say for sure that blankfein was involved...

but i will do the research and get it figured out before i write anything on the situation...

and i did the same end zone dance as you...my heart popped when i saw friedman's name included in the paulson article...
Jan 16, 2010 at 2:31 PM | Unregistered CommenterDailyBail
lastly...i just wrote this over at clusterstock...it's the other angle...Friedman buying shares of Goldman with INSIDE INFORMATION...

Even more color on the Friedman situation...let me paint a scene...

Friedman is CHAIRMAN of the NY FED at the SAME TIME as he was on the board of directors at GOLDMAN SACHS...

In December and January, with Goldman stock tanking he buys 52,600 SHARES...

HERE'S THE KEY: he purchased these shares WITH INSIDE INFORMATION that Goldman would be getting a $14 BILLION payout at PAR from AIG....

Think about it...NO ONE outside of this small circle KNEW that AIG counterparties would be getting 100 cents on the dollar...and FRIEDMAN TRADED on this information...and then the new york Fed ACTIVELY worked and pressured AIG to NOT DISCLOSE payouts at PAR to their shareholders...

A $14 billion boost to your bottom line (it was found money) that NO ONE else knows about besides you, would seem to me to be just SLIGHTLY POSITIVE for the stock...

The real question is WHY the SEC has not investigated Friedman for this illegal stock purchase...


Here's the text from a CNN article spelling out the details:

The New York Fed's general counsel, Thomas Baxter Jr., defended Friedman's recent stock purchases, which occurred while the Federal Reserve was weighing the waiver request. Friedman bought 37,300 shares worth $3 million in December, according to the Journal. He didn't check with the Fed, and lawyers at the New York Fed told the Journal they were not aware of the purchases until the newspaper contacted them last month.

Friedman then bought another 15,300 shares in January, the day after the waiver was granted. The two blocks of stock have risen a total of $3 million (now $8 million) in value.
Jan 16, 2010 at 2:33 PM | Unregistered CommenterDailyBail
Reviewing this post, comments and video, a couple things pop:

1. What happened to Friedman, if anything, other than he resigned from the NY Fed?

2. Mack talked about clawbacks at M/S--what clawbacks? Heard clawbacks the last couple of years???

3. Mack commenting on the conversion to bank holding is enlightening...would M/S and/or GSuchs have survived but for the conversion and access to the Fed discount window? I think not. Sh!t, Mack had to go to the Japs for $9bil, for Christ's sake...

4. Mack and his wife are thieves (and as a Dukie, that's tough to admit)--see Taibbi's RStone article on Mack's wife and the TALF program...
Jun 22, 2011 at 2:34 PM | Unregistered CommenterJosie

1...nothing so far...if you search the site i have updated the story on friedman with a bloomberg story on a congressional investigation underway...it's been a long time since that story however, and i've read nothing new...

2...not sure on his clawback reference...nothing has happened there at all...or we would have heard all about it i'm sure...

3...you are correct...discount window saved morgan stanley and goldman...they were absolutely done otherwise...

4...and don't worry, i will bring that story back to the top every 2 weeks for the rest of the year...it's absolutely outrageous...
Jun 22, 2011 at 3:08 PM | Registered CommenterDailyBail
Do you people realize what will happen to the country if this maggot is allowed to fly? He has stolen everything he can that can't protect itself. If Geithner becomes an industry, and it looks like the S&B controlled S.E.C. is going to leave prosecutions to Judge Judy, the coin of the realm will be stolen by the newbies down to the last penny. Then they will produce QE4 and steal that and ship it to the Caimans. Has the entire law enforcement population dropped their duties and gone to beating up on petite hippy chicks dancing instead? Come on cops. Nail Geithner. Nail Paulson. Nail Bush for 9-11. Nail Obama for allowing BP and BlackStone to blow up and fatally poison thousands of Americans and destroy the countryside and waters. Nail the miscreants using the HAARP system to cause radical weather events (This is not science fiction HAARP's stated mission was "weather manipuloation" until they started abusing the facilities recently. See 'dutchsinse.com' and review old sequence events from satellite photo sequences back to March,and listen and watch Dutch successfully predict the radical weather events while you watch the HAARP circles and chemtrails before you start clubbing anybody, especially me.). And nail the guys who set off the bombs at Fukushima and just off the coast to start the tsunami ( Science fiction again until ou see Dimona dozen v. Fukushima 50.).The U.S. is under a concerted coordinated financial, military, and politaical attack. POTUS is down. SCOTUS is treasonous.90% of Congress is mewling. Nail them all. Then we can have a beer.
Jun 22, 2011 at 10:29 PM | Unregistered CommenterHoward T. Lewis III
New from Amicus Taibbi:

"Sooner or later, this is going to blow up in our faces, and it won't be one lower-level guy with a $2 billion loss we'll be swallowing. It'll be the CEO of another rogue firm like Lehman Brothers, and it'll cost us trillions, not billions."


I think he's off by an order of magnitude to the low side when it comes to losses we'll see, but you get his point: this doesn't end well. Get ready.
Sep 16, 2011 at 4:27 AM | Unregistered CommenterCheyenne
JMack disses Timmy, but now we know was taking $109 bil from the Fed after granted access to the discount window. M/S was on the Lehman road, and that right soon, until the Fed opened their ATM...

What a joke of a country we live in...maybe the Amish have it right???

Happy retirement in NC and the upper east side JMack...you and your thief wife can suck it!
Sep 18, 2011 at 8:35 PM | Unregistered CommenterJosie
mmmmmmmm.......the WORLD...they said "F" your Treasuries..we no want them no more.....AB
Feb 1, 2012 at 9:00 PM | Unregistered CommenterAin't Bullshittin'

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