Try NY Fed incompetence
His oversight of Citigroup, as New York Federal Reserve head, pretty much was a pile of crap. And, given the Geither-Robert Rubin degree of connectedness, this is surprising?
The story notes that the New York Fed, in a key period, relaxed oversight as Citigroup went on a risky spree, and that the NY Fed’s regulatory group reported directly to Geithner. It adds that, even as Citigroup’s risky practices started falling apart last year, the Fed brought no public enforcement case, even though examiners privately sent a critical letter to the company in the first half of 2008.
Citigroup even expanded, more than doubled, its subprime mortgage offerings in 2006, even as many other lenders cut back.
Read the full story for how Geithner not only could have known better, but DID know better, and still didn’t DO better.
Plus, if you’ll go to the last page of the article, you’ll see clear indications about how he was misreading the depth of the looming crisis as late as the middle of last year.
Do we really want him as Secretary of the Treasury?
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