Seeking Alpha

Jeffrey Lacker is sticking to his original allegation made in the summer of 2007, as storm...

Jeffrey Lacker is sticking to his original allegation made in the summer of 2007, as storm clouds gathered over the world's financial system, that then-New York Federal Reserve President Timothy Geithner allegedly informed the Bank of America (BAC) and other banks about the possibility the central bank would lower the discount rate. According to transcripts of the call released by the Fed on Friday, Geithner at the time denied that banks knew the Fed was considering making any cut. Despite the inherent questionability of his actions however, its still not clear if the disclosure would have been illegal.
From other sites
Comments (17)
  • davidbdc
    , contributor
    Comments (3165) | Send Message
     
    Good grief.

     

    Talk about all the worst case scenarios playing out.

     

    Maybe we'll stop spending Trillions fighting worthless wars overseas? Ok that takes care of #9.

     

    Less than zero growth - well lets cut down the size of government and tell folks to take care of themselves..... Hey, suddenly we have some growth!!! that takes care of #8.

     

    Seven Bilion to 10 Billion ensures De-growth??? Now we are back to the idea - 1. that population growth won't slow in countries as they get richer (they almost always do), and 2. that somehow we'll stop finding ways to innovate and improve. Perhaps someone really will find a solar panel that powers everything! Perhaps we'll invent new crops that grow in Africa! Takes care of #4 and #5 and #6 and #7.

     

    Carbon Dioxide will kill us? Well don't trees use Carbon Dioxide? Maybe we'll double the number of trees? Maybe we'll invent a new fuel that takes carbon dioxide from the air and creates energy!! Takes care of #3.

     

    Stock traders bubble? Use your common sense.... let the bubble burst and swoop in and make some money!! Just ensure governments let the losers lose and not the taxpayers!!! Takes care of #2.

     

    Economic growth on long term decline - specifically in the USA. Well that because our idiot government takes over more and more of the private sector. Return the government to the role of only doing what it is not reasonable for the individual to do - and you'll find tons of innovation, wealth creation, new technology, and good times everywhere. Takes care of #1.

     

    Whew, ok. Life will continue. Freedom, liberty, hard work and innovation and some common sense can overcome all these impending doom obstacles. Notice I didn't mention government in that statement!
    19 Jan 2013, 05:04 PM Reply Like
  • davidbdc
    , contributor
    Comments (3165) | Send Message
     
    Somehow my comment from another article ended up here - my apologies.

     

    We all know that everything was done for the banks - telling them of this is just a blip on the radar.

     

    What is truly remarkable is the number of people who have not been prosecuted for fraud. It a national disgrace.

     

    Equally remarkable are the trillions of dollars that have been handed out by the government - enriching even more folks that haven't earned it - and penalizing those that have actually lived their lives responsibly and saved.
    19 Jan 2013, 05:21 PM Reply Like
  • MexCom
    , contributor
    Comments (3053) | Send Message
     
    Your total incompetence is noted and accepted.
    19 Jan 2013, 06:26 PM Reply Like
  • davidbdc
    , contributor
    Comments (3165) | Send Message
     
    My wife liked your comment!
    19 Jan 2013, 06:28 PM Reply Like
  • wyostocks
    , contributor
    Comments (8229) | Send Message
     
    Timmy lacking in ethics? Think tax returns.

     

    Why would this be a shock to anyone if proven true.

     

    Seems like a perfect item to add to his resume.

     

    Wait a few years till we find out what he did as Treasury Sec.
    19 Jan 2013, 05:10 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    This happens all the time. The Fed is the ultimate perp in rate manipulation and peddling inside knowledge of NYFRB trade desk trades and moves.
    19 Jan 2013, 05:36 PM Reply Like
  • ssl23
    , contributor
    Comments (120) | Send Message
     
    Not only can the banks collude to fix libor rates they get illegal inside inform on possible fed interest rate moves from the fed??? You think these bankers prop desks didnt trade on this info???

     

    Does anyone not see a conflict of interest when private bankers become Fed and Treasury officials?

     

    makes sense now why he's gone before inauguration.
    19 Jan 2013, 05:49 PM Reply Like
  • davidbdc
    , contributor
    Comments (3165) | Send Message
     
    He's gone so that he can "cash in". After all you don't think this information was free do you???

     

    I'm expecting that he'll "earn" about $2-$3 Million per year as a managing director of watching the paint dry and attending meetings at resorts.

     

    In addition, I figure they'll pay for him to "speak" at conferences at 30-50K per pop for the next 10 years, and he'll get appointed to a number of boards - for about 250K a year per board.

     

    So in 10 years or so he'll rake in 40 MM or so for the access he granted.
    19 Jan 2013, 08:51 PM Reply Like
  • june1234
    , contributor
    Comments (2659) | Send Message
     
    Bernanke has said he would do anything I believe him .
    19 Jan 2013, 06:36 PM Reply Like
  • assetman07
    , contributor
    Comments (65) | Send Message
     
    That explains why the Fed wants to stay opaque for as long as entirely possible.... gotta let those statues of limitations expire.
    19 Jan 2013, 07:46 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5714) | Send Message
     
    How can it not be clear if the disclosure was illegal?

     

    Either he was allowed to tell select people what was going to happen or he was not.

     

    There is nothing in the law books that covers this, I am to assume.

     

    This is as good as Hank Paulson's meeting with Goldman Sachs executives in Moscow when he was Treasury Secretary.

     

    http://bit.ly/US9mug

     

    The game is rigged. There is no agency that is willing to fix what is broken. Play the game at your own risk.
    19 Jan 2013, 07:58 PM Reply Like
  • STDvooh
    , contributor
    Comments (641) | Send Message
     
    NYFRB is a criminal organization. The "Federal" Reserve System is bleeding America dry.
    19 Jan 2013, 08:23 PM Reply Like
  • jimbrad101
    , contributor
    Comments (8) | Send Message
     
    Does anyone - and I mean ANYONE - in this administration have ANY integrity. Is there one Democrat in Congress that stand up and say STOP! Are there any Republicans that are bright enough to explain how a 16 trillion debt at very, very low interest rates can destroy our economy when interest rates go to 5% as they are sure to do one day?
    19 Jan 2013, 09:01 PM Reply Like
  • flemsnopes
    , contributor
    Comments (124) | Send Message
     
    A Democrat speak out against the current administration and its fiscal shenanigans? Unthinkable! They would rather burn in hell than risk shifting the national focus to our $16.5 trillion dollar debt and at least $122 trillion in unfunded liabilities. But hey, if we can just get that gun control stuff rammed through, everything should be just fine.
    21 Jan 2013, 01:36 PM Reply Like
  • Black Gold
    , contributor
    Comments (586) | Send Message
     
    Are there people that still believe this stuff doesn't go on? This is common place in the stock market now days and regulators are non existent.

     

    Remember March 11th 2008 when someone purchased a TON of 50% out of the money Bear Stearns puts with 10 days left to expiration? Magically the NY Fed pulled Bear's loan a few days later and forced the JP Morgan buyout. Who was the head of the NY Fed at the time? (Dumb question) Who got tipped off? Who made the cash on these puts?
    19 Jan 2013, 11:35 PM Reply Like
  • ssl23
    , contributor
    Comments (120) | Send Message
     
    Next year's edition should be interesting...

     

    we'll really see why they saved bear and not lehman.

     

    back in the days credit officers were always weary of bear and lehman, hair cuts were larger and those firms always were considered more of a credit risk.

     

    the street knew the dangers, but there was too much self interest to keep the party going...
    20 Jan 2013, 12:48 AM Reply Like
  • bbro
    , contributor
    Comments (9841) | Send Message
     
    Yawn..
    20 Jan 2013, 01:20 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector