Geitner and Summers to Regulate?

Geitner and Summers , Sounds like a good name for a Music Duo

While Geitner and Summers pretend to be asking for tighter regulation and more power to the Fed to ‘regulate’ the financial industry we need to re-read this last article carefully and then you will understand why what they are saying is so laughable. http://online.wsj.com/article/SB124532495495527289.html


Top Economics Aide Discloses Income
Summers Earned Salary From Hedge Fund, Speaking Fees From Wall St. Firms
Washington Post Staff Writers Saturday, April 4, 2009
http://www.washingtonpost.com/wp-dyn/content/article/2009/04/03/AR2009040303732.html?hpid=topnews


From “What Cooked the Economy, it wasn’t your overdue mortgage by James Lieber
http://www.argumentations.com/Argumentations/StoryDetail_10568.aspx

“People still seem surprised to read that hedge principals have raked in billions of dollars in a single year. They shouldn't be. These subprime-time players knew how to score. The scam bled AIG white. In mid-September, when it was on the ropes, AIG received an astonishing $85 billion emergency line of credit from the Fed. Soon, that was supplemented by another $67 billion. Much of that money, to use the government's euphemism, has already been "drawn down." Shamefully, neither Washington nor AIG will explain where the billions went. But the answer is increasingly clear: It went to counterparties who bought derivatives from Cassano's shop in London.”

“AIG's lavishly compensated counterparties were willing participants and likewise could be considered for prosecution, depending on what they knew. Who were they?
At a 2007 conference, Cassano defined them as a "global swath" that included "banks and investment banks, pension funds, endowments, foundations, insurance companies, hedge funds, money managers, high-net-worth individuals, municipalities, sovereigns, and supranationals." Abetting the scheme, ratings agencies like Standard & Poor's gave high grades to the shaky mortgage-backed securities bundled by investment banks such as Goldman Sachs and Lehman Brothers.”