More on Geithner WSJ interview: He also explains why he's uncomfortable with accusations that...

More on Geithner WSJ interview: He also explains why he's uncomfortable with accusations that bankers haven't been punished enough for the financial crisis. "A huge part of what happened across the system was just a mixture of ignorance and greed, or hope over experience, and not illegal. Most financial crises are not caused by fraud or abuse. They're caused by people taking on risks they don't understand, too much risk."

Comments (5)
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
    "And besides that," Geithner added, "people who make very large campaign contributions are inherently incapable of committing crimes. You can look it up."


    There. Fixed it for you.
    18 Jan 2013, 04:58 AM Reply Like
  • rambler1
    , contributor
    Comments (1001) | Send Message
    If it wasn't for the gov't from the Congress for lax regulations Federal Reserve with loose monetary policy & Fannie & Freddie as a repository for all the crap securities being issued it may never have happened. In the meanwhile if you were in banking what were you going to do? The insanity lasted almost 10 years! So maybe everyone should have said "Oh gov't policies are stupid maybe I should shut my bank or quit my job?"
    18 Jan 2013, 07:36 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2661) | Send Message
    Interesting take in the NYT on Geithner's "legacy" and how it could help the GOP electorally if the GOP was smart enough to use it. I won't hold my breath waiting on the GOP to be smart politically.

    18 Jan 2013, 08:11 AM Reply Like
  • Rhianni32
    , contributor
    Comments (2086) | Send Message
    He has a rather big point. You can only prosecute and punish people for doing illegal things. Not immoral things. They are two different things.
    18 Jan 2013, 10:04 AM Reply Like
  • Vince Martin
    , contributor
    Comments (1813) | Send Message
    While the argument that the entire crisis was based on fraud is exaggerated, Geithner's rebuttal is far too limited. There are two words that disprove his argument: fiduciary duty. There have been multiple proven criminal acts directly tied to the crisis that have been outed in the media.


    Granted, it is much more difficult to prosecute these types of financial crimes , and that too may have dented the govt's enthusiasm. But bear in mind that in assessing HSBC a massive fine a few months ago government officials basically admitted that they were worried about the impact of individual criminal prosecution on the markets. The fact that no criminal charges were filed relating to what were CLEARLY pre-meditated and repeated criminal acts belies Geithner's argument.
    18 Jan 2013, 01:22 PM Reply Like
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