As we were formally informed yesterday, by TARP Inspector General Neal Barofsky and as it was further confirmed by the Federal Reserve--even though it was only given short shrift around here and in the MSM on Monday--Henry Paulson and other U.S. Treasury Department officials outright lied to the public about the health of the nation's too-big-to-fail banks throughout the last few months of the Bush Administration, during the Fall and Winter of 2008 (and the first 20 days of 2009).
See: "Report on Bailouts Says Treasury Misled Public."
Stating the obvious, it's not even a slight stretch to assume that Tim Geithner, the current Treasury Secretary, was fully aware of this due to his role, at the time, as head of the New York Federal Reserve branch, too. Furthermore, Ben Bernanke, as is self-evident from Monday's story, was also fully aware of the situation.
Now, don't think I'm surprised about any of this. Hell, I was ranting about this throughout the blogosphere for almost two years prior to last September's official economic meltdown.
And, yes, Hank Paulson was acquitted of these "crimes" virtually before he even committed them. By an act of Congress, no less. But, what about Geithner and Bernanke?
Just think about it for a second. Please. Think about how this story played out yesterday. Nary a whimper in the MSM. Mild notice was made of this news, but little more than that in the blogosphere.
Kossack Badabing posted a great diary here yesterday, entitled: "Rep. Alan Grayson - The 'Eliot Ness' of Wall Street." I strongly recommend it, by the way. She did bring this story somewhat to the attention of a handful of us in the community. But, the focus of her piece was on a subject she's been covering closely for a year now: Alan Grayson.
So, here we are today with, essentially, the same economic management team in place as last Fall, with DINO and Rubinist economics guru Larry Summers added to the mix.
What kind of statement does this make about us and to us--and to the world, for that matter--about "The full faith and trust of the U.S. government?"
What does this formal announcement about...hmmm...brutally blatant dishonesty running rampant throughout our economic sector--from the top down--tell the global financial markets?
How is this something that, in any way, shape or form, may be rationalized and condoned, let alone fully-supported and reinforced as something that is "good" for the future of American society? For you and me? For our children?
Did we not jail executives from MCI-Worldcomm and Enron a few years ago for these very same crimes?
What does it say about everything--yeah, freakin' everything--that comes from Bernanke's and Geithner's lips now?
Here's the money quote from the NY Times: "Report on Bailouts Says Treasury Misled Public"
Report on Bailouts Says Treasury Misled Public
By LOUISE STORY
New York Times
Published: October 5, 2009
...Mr. Barofsky's office also says that regulators were wrong to tell the public last year that the earliest bailout recipients were all healthy.
Former Treasury Secretary Henry M. Paulson Jr., for instance, said on Oct. 14 that the banks were "healthy," and that they accepted the money for "the good of the U.S. economy." The banks, he said, would be better able to increase their lending to consumers and businesses.
In truth, regulators were concerned about the health of several banks that received that first bailout, the inspector general writes.
The inspector general said government officials need to be more careful when describing their actions and rationale. In a letter included with the report, the Federal Reserve concurred with Mr. Barofsky's concern about the statements made last year, but the Treasury Department said that any review of announcements last year "must be considered in light of the unprecedented circumstances in which they were made."
Any doubts I had about what I'm about to say at this point are gone. Off the table. It's crystal clear to me now. And, contrary to popular belief, I've NEVER said this before: For the good of this country, Tim Geithner and Ben Bernanke should resign, immediately.