One step ahead of the law.

Fed official alleges Geithner may have alerted banks to rate cut

By Alister Bull, Reuters

Sat Jan 19, 2013 1:28am EST

In the summer of 2007, as storm clouds gathered over the world’s financial system, then-New York Federal Reserve President Timothy Geithner allegedly informed the Bank of America and other banks about the possibility the U.S. central bank would lower one of its critical interest rates, according to a senior Fed official.

According to transcripts of the call released by the Fed on Friday, Geithner at the time denied that banks knew the Fed was considering cutting the discount rate.

Private disclosure of confidential, market-sensitive information by the central bank would be highly unusual, but it was not immediately clear if it would be illegal. It also was not clear if strict Fed internal rules governing confidential information would have been breached, or whether any internal or external investigation was mounted.

Not that I expect an orange jumpsuit, but clearly there should be (h/t Atrios).


  1. ek hornbeck
  2. terryhallinan

    Geithner is lauded as a most honorable fellow by some who are less than admiring of other crooks Obama hired to fix the economy – and did it some more hurt.

    Lots of people would look good in orange jumpsuits but they are still being saved for medical marijuana users and growers.

    Obama apparently doesn’t want dying people to get hooked or later face the fires of hell.

    Obama tells it differently but, hey, that’s politics.

    Marijuana Possession Arrests Exceed Violent Crime Arrests

    There is no breakdown in the article between federal and other arrests but some horror stories out of California regarding federal prosecution of medical mariuana purveyors are not suitable for a family site.

    Best,  Terry

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