Former FDIC chairman Sheila Bair has a new book out slamming Treasury Secretary Timothy Geithner and his handling of the bank bailouts during the financial crisis.
Bair went on CNBC’s Power Lunch today to discuss her book “Bull by the Horns” in which she dubs Geithner “the bailouter in chief” during the crisis.
Here are some key points from her appearance:
- “I think [Geithner] viewed the problems through the prism of the large financial institutions, particularly Citigroup, and his worldview was if you help them out of their troubles you’re going to help out the economy. I wanted to impose some market accountability. I wanted bondholders to take losses, I wanted those who had lent money to these institutions, the investors, to share more of the pain and share more of the risk. I think it was just a constant conflict throughout…There was just a philosophic disagreement throughout my tenure.”
- “I do know that my voice wasn’t heard as it should, I was not included in as many meetings as I should have been. I was not given any advance warning on our actions.”
- “We didn’t help homeowners, we didn’t tackle the way we should have, we didn’t clean up the bank balance sheets. It continues to be a drag on the economy and there remains horrible public cynicism and anger towards Washington and toward large financial institution. There’s this perception that the game is rigged, everybody in Washington is captive, and it was all created by the bailout. It still makes me angry.”
Check out the video below:
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