"The letter, written by BayernLB Chief Executive Gerd Haeusler, says: "Hereby we terminate the mandate from 28.11. 2008 with immediate effect."
BayernLB's action comes days after the Securities and Exchange Commission (SEC) accused Goldman Sachs of defrauding investors by failing to say that a prominent hedge fund manager bet against a Goldman subprime debt product that he helped design. Haeusler said in the letter that the fraud charges brought against Goldman Sachs were the reason BayernLB was cutting its ties with the bank ..."Don't tell me Geithner wasn't aware of the above action...he had to know, for he was more than likely part of the SEC's investigation. As a participant in the shenanigans at Goldman Sachs, Geithner surely must have known the SEC would eventually uncover the wrong doings and bring charges whether criminal or civil. And as with so many back room/closed door meetings in the Obama Administration their surely must have been an agreement to post denials as seen here. ~ Norman E. Hooben
ps: Jim Cramer was right on when he said (about Geithner's appointment), " If Tim Geithner ... gets a top spot in Barack Obama's cabinet we are done, finished, kaput. It is that simple" CNBC commentator Jim Cramer, (BBC, November 23, 2008)
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Geithner: ‘No Warnings, No Notice’ From SEC on Goldman
The Treasury Department and the Obama administration didn’t have any advanced warning that federal securities regulators were preparing to file a civil lawsuit against Goldman Sachs Group, alleging fraud over mortgage securities, Treasury Secretary Timothy Geithner said.
In an interview taped Wednesday and aired Thursday on ABC’s “Good Morning America,” Geithner, asked if anyone in Treasury or the administration had a heads-up that the lawsuit was coming, said “Absolutely not.”
“That could never happen. It should never happen. [The Securities and Exchange Commission is] a fully independent agency and they give no warnings, no notice, no heads up. And there should be no involvement by any person in the executive branch ever in those kind of investigations.
“And I’m very confident our system protects against that risk.”
Geithner declined comment on specifics of the SEC’s case against Goldman Sachs, but then said, “what you need to have is a system in which this stuff happens not in the dark — where people — some people, can make some money, but it comes at enormous risk to the system as a whole.
“But we bring derivatives out of the dark so those types of activities happen in broad daylight with full disclosure and with the cops able to police this stuff more effectively.
“We want to have a system in which the financial cops can act preemptively to deal with these kind of things, not be forced to come in after the fact and clean up the mess. And that’s the kind of system we want to build.”
Geithner, in a series of television appearances Thursday, also continued to press the Obama administration’s case for reform of the nation’s financial regulatory system.
In an interview taped Wednesday and aired Thursday on CBS’s “The Early Show,” Geithner argued the reform package, nearing action by Congress, would protect taxpayers from institutions which “manage themselves to the edge of failure,” and make shareholders “bear the costs of the crisis.”
In an interview taped Wednesday and aired Thursday on ABC’s “Good Morning America,” Geithner, asked if anyone in Treasury or the administration had a heads-up that the lawsuit was coming, said “Absolutely not.”
“That could never happen. It should never happen. [The Securities and Exchange Commission is] a fully independent agency and they give no warnings, no notice, no heads up. And there should be no involvement by any person in the executive branch ever in those kind of investigations.
“And I’m very confident our system protects against that risk.”
Geithner declined comment on specifics of the SEC’s case against Goldman Sachs, but then said, “what you need to have is a system in which this stuff happens not in the dark — where people — some people, can make some money, but it comes at enormous risk to the system as a whole.
“But we bring derivatives out of the dark so those types of activities happen in broad daylight with full disclosure and with the cops able to police this stuff more effectively.
“We want to have a system in which the financial cops can act preemptively to deal with these kind of things, not be forced to come in after the fact and clean up the mess. And that’s the kind of system we want to build.”
Geithner, in a series of television appearances Thursday, also continued to press the Obama administration’s case for reform of the nation’s financial regulatory system.
In an interview taped Wednesday and aired Thursday on CBS’s “The Early Show,” Geithner argued the reform package, nearing action by Congress, would protect taxpayers from institutions which “manage themselves to the edge of failure,” and make shareholders “bear the costs of the crisis.”
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