A Funny Thing Happened on the Way to the Senate Banking Committee Hearing

On May 20th, U.S. Treasury Secretary Geithner testified before the Senate Banking Committee on TARP Oversight.

Our Senators, bi-partisan, asked some very good common sense questions.

This hearing was right before Geithner announced they will be using the
Wall Street Plan
(read Goldman Sachs, JP Morgan Chase) for OTC derivatives trading, a seemingly contradiction of his earlier May 13th proposal.

Below are excerpts from the committee questioning.

Senator Mark Warner asks why AIG paid out on credit default swaps at 100%, in particular to Goldman Sachs:

 

Senator Bob Corker asks why AIG is not being wound down:

 

Geithner admits the U.S. Treasury has no TARP exit strategy:

 

So, we have a never ending U.S. taxpayer recycling bail out system, continued funneling of U.S. taxpayer funds through AIG, refusal to request authority to shut any of this glorified debt treadmill down and after much fanfare on OTC derivatives oversight and regulation, the same rats who have a massive financial interest will also design the OTC derivatives regulatory system?

Isn't this along the lines of health insurance companies, the ones who brought America to it's knees by looking at sick people as consumers from which to extract profits, designing health care reform?

Meta: 

Comments

If congress is so concern then cut them off.

Take the authority away or put an deadline on the $750 billion open line of credit that Mr. Geithner thinks he has.

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pomp & circumstance

I agree, they should grab the reins and rein in. So far, we have some pretty nice rhetoric and it sure seems from constituents to individual Congress members there is a lot of upset so why are they not plain standing up as an independent branch of government and doing something about it?

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I have to share this with you all.

The Congressional hearings were topics on many other econ/financial sites this week. One of the readers at one of those sites left these comments:

All the 'testimony' given before Congress is not only a breathtaking web of pathological lies, but more and more resembles a stream of consciousness (poorly done) and the charlatan rituals of 'talking in tongues'.

No one has dropped to the floor and started writhing but it's coming, just be patient and stay in your seats.

At this point of absurdity, Geithner could easily say something like, "excuse me, I have to scratch my balls before I give y'all the next shameless lie", belch loudly and start reciting nursery rhymes and the 'distinguished' members of Congress won't bat an eye.

They would compliment his polish and manners for saying 'excuse me'.

LOL, well I thought it was funny.

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all comedic skit writers, read this comment!

I want to see this done up, acted Professionally, in a video clip.

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