Geithner to Dimon: Resign From the Board of the New York Fed

[kpete]

Source: Huffington Post

Geithner to Dimon: Resign From the Board of the New York Fed
Posted: 05/17/2012 10:27 pm

In an interview Thursday on PBS NewsHour, Jeffrey Brown and Treasury Secretary Tim Geithner had the following exchange:



"JEFFREY BROWN: Do you think Jamie Dimon should be off the board [of the New York Federal Reserve Board]?

TIMOTHY GEITHNER: Well, that's a question he'll have to make and the Fed will have to make. But again, on the basic point, which is it is very important, particularly given the damage caused by the crisis, that our system of oversight and safeguards and the enforcement authorities have not just the resources they need, but they are perceived to be above any political influence and have the independence and the ability to make sure these reforms are tough and effective so we protect the American people, again, from a crisis like this. And we're going to, we're going to do that."




In the diplomatic language of Treasury communications, Mr. Geithner just told Jamie Dimon to resign from the New York Fed board (here is the current board composition). It looks bad -- and it is bad -- to have him on the board of this key part of the Federal Reserve System at a time when his bank is under investigation with regard to its large trading losses and the apparent failure of its risk management system.

Read more: http://www.huffingtonpost.com/simon-johnson/geithner-jamie-dimon-resign_b_1526235.html

[dkf]

1. Isn't Geithner on his way out?

[Demeter]

8. Not Soon Enough!

[MrMickeysMom]

2. Of course, it's bad, Mr. Geithner...

It was bad from the beginning that he and people like YOU got promoted for performing as the absolute FAILURES of the banking industry.

YOU should follow his lead, Mr. Geitherner.

[dkf]

5. Yes the banks need to cut off people who are not suited financially or temperamentally for debt.

The failure of the banking system is they loan money to people who have no capacity to spend less than they earn.

Credit should be a privilege earned through demonstration of discipline.

[magical thyme]

9. not to mention that banks need to stop changing people's loan applications

by criminal games such as increasing their incomes via forgery and putting them into different types of loans than they requested.

[JDPriestly]

10. The bankers are in a pinch.

The economy is not a matter of pluses and minuses, of gains and losses, but rather of flow from one sector of or participant in the economy to another and back and around again. What goes around comes around is really a good way to describe a healthy economy.

But bankers like Dimon only want to allow the money to flow out from their sector if they can attach a string to it and pull it back. The Bankers play with borrowers like people play with a cat. They put a phony mouse, just a stuffed toy on a string (the loan they know will never be repaid) and they dangle it in front of the cat and then watch the cat jump. That is what bankers do with their loans to small-time borrowers.

That is because bankers are torn between their greed, that is, their desire to hoard their money and prevent others from having it, and their desire to profit from their money.

In order to profit and benefit from a healthy economy, bankers and others in business have to let go of their money, let it flow around until it comes back to them in one form or another -- either as goods and services that they want or need or as payment for services or goods that they provide to others.

The greed of the bankers makes them prefer to "lend" the money, rather than pay decent wages that would permit people to buy enough to keep the economy going without loans or at least repay loans if they have to take them.

That is why it seems that people can't spend less than they earn. They can't if they want to lead a life of dignity. It's not that they aren't disciplined. It's that they earn too little thanks to the greed of the MBA class.

I would say right now that the main problem with our economy is that the very wealthy are starving the middle class and the poor.

Greed kills. No question.

I agree with Geithner. Dimon should resign (from all of his posts in my opinion). But then I think Geithner should resign to.

[dkf]

3. Geithner said it was a perception problem because people don't understand the role of the board.

"Geithner, who headed the New York Fed before becoming Treasury secretary, noted that board members do not write the rules that it imposes.

"Their role is a much more limited role, and the role is to help provide a perspective on what's happening in the economy as a whole," he said, while conceding that might not be well understood and could be misconstrued by some."

http://finance.yahoo.com/news/geithner-questions-regional-fed-boards-220930294.html

If the boards function is to explain what is happening in the economy, we need Jamie Dimon as he would have a better feel for things. Why we would want to fly blind just to satisfy people's cluelessness is beyond me.

Even the people of Greece are realizing they need a functioning banking system.

[Javaman]

4. Pot. nt

[harmonicon]

6. Pot to Kettle: Black. (nt)

[PoliticAverse]

7. Sorry but his response looks more like an attempt to avoid the question rather than 'resign'. n/t

[freshwest]

11. Good stuff.