+++ 1. August 2012 +++
Geithner Gets Pinned on Libor Coverup before Congress
While members of the LaRouche Political Action Committee rallied outside, Treasury Secretary Timothy Geithner had to face some pointed questions about his complicity in covering up the crime of Libor interest-rating fixing last week. He appeared before the House Financial Services Committee on July 25 and the Senate Banking Committee July 26, to present the annual report of the Financial Stability Oversight Council. Instead, by the conclusion, he found himself pinned into admitting that he had failed to act to stop a financial crime - a crime which, in reality, led to widespread suffering, and even deaths, in localities through the U.S. and Europe.
On the eve of the testimony, the New York Federal Reserve Bank, which Geithner headed in 2007-8, was served with a third document request from the Subcommittee of Oversight and Investigation of the House Financial Service Committee, on the issue of the Libor crime. Subcommittee head Republican Rep. Randy Neugebauer demanded all communications about Libor from August 2007 to the present, among all New York Fed employees, and between them and employees of any of the 16 banks that set Libor rates, and any U.S. and foreign government agencies.
Geithner may have hoped to avoid the issue, but he was pressed repeatedly, in both Houses, to answer the most embarrassing question: "Did you report the criminal behavior of the rigging of the Libor rate to the Department of Justice?" After hemming and hawing at some length, he was forced to admit: "No, I did not."
Geithner's admission lays him open to prosecution. For not only do some of the emails so far released by the Bank of England indicate that he was involving in setting the fraudulent rates, but he also is under obligation, as a Fed official, to report criminal activity. As former Special Inspector General of the TARP program Neil Barofsky has pointed out about the Libor-rigging in repeated public appearances, "This was a scheme to defraud. This is textbook securities fraud.'' If Geithner refused to report it, and in fact used the fraudulent figures, he is guilty of a coverup, or worse.
Will Geithner be held responsible for Libor, and other crimes he committed for Wall St. and London bankers under the Obama Administration? That will largely depend on the decisions taken by the political forces now coalescing with LPAC in favor of Glass-Steagall and a new credit system, in the weeks ahead.
~ deutsch + english ~
+++ 24. Mai 2013 +++
Pope Francis Calls for Financial Reform
Two months after his election, Pope Francis has spoken out forcefully against the dictatorship of the financial markets, which is reducing humanity to misery. Speaking in front of the ambassadors of K...
+++ 24. Mai 2013 +++
Bundestag Passes Phoney "Bank Separation" Law
On May 17, the German Bundestag passed a bank restructuring bill touted by the government as the "first bank separation law passed in Europe." In fact, the law is a far cry from what the government cl...