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Geithner on the Hill

U.S. Treasury Secretary Timothy Geithner testified before the House Financial Services Committee this morning. Most of the questioning concerned the growing LIBOR scandal. 

Representative Mel Watt noted the declining number of African American car dealers and asked if there was anything Treasury could do, given its large holding of GM stock, to reverse this situation. Rather than giving a solution, the Secretary promised to get back to him. 

We suggested a solution as far back as 2008: there is nothing to stop Treasury from filing a shareholder resolution with GM on the matter. 

On LIBOR, Representative Scott Garrett (R-NJ) noted that "Geithner had four years, and meeting after meeting, to bring the LIBOR issue to Congress' attention and it just wasn't done."

Mr. Geithner appeared unflapped. He has, after all, done this before. He noted, in prepared remarks, that “The American financial system has regained its footing since the crisis of a few years ago but is still threatened by instability in Europe and uncertainty about taxes and spending at home ..." thereby missing the point once again. 

The financial system is not threatened by instability in Europe and uncertainty about taxes. It is threatened by growing levels of fraud and declining levels of ethical behavior within major financial institutions. 
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