"You need to have a dialogue with the people who are going to be driving, but you don't want them writing the new rules." A quote from Tim Geithner with regard to the new rules for financial institutions.
The question is - is he having too much of a dialogue with Goldman, JP Morgan, Citibank and Black Rock? The Wall Street Journal reports he had 80 telephone calls with the leaders of these four institutions in the first six months of his term. True, these are very important institutions and we invested a fair amount in them, but we also invested quite a bit in Bank of America, GM and Chrysler. Geithner had "far less contact" with Ken Lewis, one with Chrysler and zero with GM. Even Paulson had far fewer phone calls with these people he was supposed to be regulating. What's that expression about Caesar's wife?
It may also be that Geithner continues to need mentors, as he has had for much of his career.
1 comment:
For her part in the scandal of Bona Dea, methinks Pompeia innocent as the driven snow, when compared to Mister Geithner's financial shenanigans.
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