Geithner says some bank CEOs may have to go

[IDemo]

Source: Associated Press

updated 1 hour, 47 minutes ago

WASHINGTON - The government may require new faces in executive suites at banks requiring “exceptional assistance” in the future, Treasury Secretary Timothy Geithner said Sunday.

Critics of the Obama administration’s move last weekend to force out the chairman of General Motors Corp., Rick Wagoner, as a condition for possible additional federal loans say that strong government intervention contrasts with measures placed on the financial industry in return for billions in infusions.

Geithner denied there was a double standard and put banks on notice that they may need to change leadership teams in exchange for accepting more money in the future.

“If, in the future, banks need exceptional assistance in order to get through this, then we’ll make sure that assistance comes with conditions, not just to protect the taxpayer but to make sure this is the kind of restructuring necessary for them to emerge stronger,” he told “Face the Nation” on CBS. “And where that requires a change of management of the board, we’ll do that.”

Read more: http://www.msnbc.msn.com/id/30057099/

[pleah]

1. I'll believe it when I see it. n/t

[IDemo]

3. Expected headline tomorrow morning: Administration Announces Plan to Protect CEO's from Geithner

[Deja Q]

2. Wouldn't it be more fun just to continue to berate them and let them keep their jobs?

I mean, if they're fired, where will the incentive be for new ones to take their places? Especially to wreck the company and leave it with a $20 million severance package for doing such a good job.

[Myrina]

4. Minimum wage, a bus pass, and a room at a boarding house.

I'm good with them keeping their jobs, under those conditions.

[Donnachaidh]

5. and let them apply for food stamps

Or have to get their meals at a soup kitchen.

[bluestateguy]

6. There're going to throw a couple of them out to the wolves

As for who, I don't know.

But when you take taxpayer money, you do things our way.

[Larkspur]

7. Geithner didn't do his job as regulator when he headed the NY Fed so why believe him now

Firing the bank CEO's will not happen as long as Geithner and Summers are incharge of Obama's economic recovery plan.

[alllyingwhores]

26. NOOOO SHIT!!...did you see Geithner's recent testimony to Congress?

"I (he, Geithner) was not a regulator!" That's right, the former head regulator at the NY Federal Reserve Bank, in his own words, was not a regulator!!

We all know that the asshole didn't regulate anything...although...that was...HIS F__KING JOB!!

[Name removed]

8. Deleted message

Message removed by moderator. Click here to review the message board rules.

[bottomtheweaver]

9. Vicious

You hit me with a flower
You do it every hour
Ohh, baby you're so vicious

[w4rma]

10. No more money for the banks. Let them fail. Americans will start new banks.

That is how capitalism works. America needs less debt, not more credit.

[Vidar]

11. I'm glad he's saying it, but I don't really believe him.

[dixiegrrrrl]

12. His weasel word was "if..in future" meaning past is ok.

But Elizabeth Warren, Chairman of the Oversight Comm. is supposed to release a report this week blasting Timmy for NOT firing the greedy bastards.

Since I don't bank with BOA, Wells, or any of the big banks, I get free complaining rights about them....ha!

[Marie26]

13. "if., in the future.." "where required..."

What a pack of weasel words. It's not gonna happen.

[BelgianMadCow]

20. don't forget "exceptional"

as in: something other that the instituted giveaways under the TARP program. Or "injections" an order of magnitude larger.

I'm sure they're cowering in the corner already, not.

[chill_wind]

14. This is an effort to get out in front of Elizabeth Warren

I suspect, who is calling him out, but whose story didn't make it to the US media. And she's not just talking future tense.

last nite:
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=103x438567#top
http://www.guardian.co.uk/business/2009/apr/05/useconomy-regulators

US watchdog calls for bank executives to be sacked

*

Elizabeth Warren, chief watchdog of America's $700bn (£472bn) bank bailout plan, will this week call for the removal of top executives from Citigroup, AIG and other institutions that have received government funds in a damning report that will question the administration's approach to saving the financial system from collapse.

Warren, a Harvard law professor and chair of the congressional oversight committee monitoring the government's Troubled Asset Relief Program (Tarp), is also set to call for shareholders in those institutions to be "wiped out". "It is crucial for these things to happen," she said. "Japan tried to avoid them and just offered subsidy with little or no consequences for management or equity investors, and this is why Japan suffered a lost decade." She declined to give more detail but confirmed that she would refer to insurance group AIG, which has received $173bn in bailout money, and banking giant Citigroup, which has had $45bn in funds and more than $316bn of loan guarantees.

Warren also believes there are "dangers inherent" in the approach taken by treasury secretary Tim Geithner, who she says has offered "open-ended subsidies" to some of the world's biggest financial institutions without adequately weighing potential pitfalls. "We want to ensure that the treasury gives the public an alternative approach," she said, adding that she was worried that banks would not recover while they were being fed subsidies. "When are they going to say, enough?" she said.

She said she did not want to be too hard on Geithner but that he must address the issues in the report. "The very notion that anyone would infuse money into a financially troubled entity without demanding changes in management is preposterous."

I think he's figuring out he's been ignoring the wrong watchdog.

[Mari333]

15. yes but this made it out

http://www.pbs.org/moyers/journal/04032009/watch.html

[lib2DaBone]

16. No more free money for the Bankster/Gangsters....

..Bail out the American worker!

[MasonJar]

17. It will NOT happen under Geithner. I vote for Elizabeth Warner. She is

one intelligent and straightforward woman with no allowances for anyone who is in the wrong. She is a true patriot with the people's interest in mind. On edit: Elizabeth Warren

[pauldg0]

23. This is good.....

she is doing a meaningful job....she is the watchdog. She was speaking the other day on CNN, and it seems like she is slowly turning the tourniquet. Let them both try to get ahead of each other. She is tenacious!! So is he!!! The ball is in motion...... let them keep trying to step over and under each other. At least we will see what is going on. I think they both want to succeed.

All this may seem to be failing, but all she has to be is present and it should give chills to all who are screwing us in the banking industry....GOOOOOO Elizabeth.

It may not seem like it, but the nail is slowing starting to bend. I believe over time, this administration will be back to or near where we were before the repuks fucked us.

Obama wants to please us. He a narcissist like most politicians are, but he's a smart cookie, so watch and enjoy!!!

[Demeter]

18. After You, Timmy!

And take Larry, Ben and Curly with you!

[underpants]

19. Damn that "get them hooked on credit" thing is bitch when it turns around huh?

:rofl:

[pam4water]

21. Geithner just blowing smoke. Their not leaving unless they think they are go to be indited by

the New York Attorney General. Since the Federal Department of Justice isn't going to do jack shit.

[pinniped]

22. It doesn't matter anyways. Their multimillion dollar packages await them regardless.

.

[chill_wind]

24. Getting them out exposes the hidden rot they are sitting on

and makes it harder to hide by new management. That rot may be many tiers deep, but there have to be suitable people. It sends a message going forward. Admonitions about pitchforks and appearances- a returned jet here, a bonus scuffle there- isn't enough.

[Oregone]

25. If you want to pretend to be on the board of directors, but the fucking company already

[GeorgeGist]

27. What about Bank Holding Companies?

never mind.