Obama deceiving everyone?

[Oliver]

While I wonder that Obama-haters didn't jump on this one yet, in an interview between Bill Moyers and William Black, Mr. Black claims that Mr. Geithner is violating a law that requires him to let fraudulent/broke institutions fail.

According to Mr. Black, Mr. Geithner ignores the law and punishes Tax Payers because 'He and his collegues are afraid to death'.

Now I started a seperate thread about the financial part of the outrageous story, but I'm interested concerning the political part being played here as well - in fact, I just wrote an Email to the White House asking them about the accusation.

To fully understand what I'm talking about, read this thread or watch the interview I was referring to:

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

liars' loans fraud, deceiving Geithner and the stupid US-taxpayers

 

[KoihimeNakamura]

(ii) take such other action as the agency determines, with the concurrence of the Corporation, would better achieve the purpose of this section, after documenting why the action would better achieve that purpose.

 

[Malkuth]

Almost everyone.

 

[mhaze]

From the link:


WILLIAM K. BLACK: There are two reasons. One, they're much closer to the bankers. These are people from the banking industry. And they have a lot more sympathy. In fact, they're outright hostile to autoworkers, as you can see. They want to bash all of their contracts. But when they get to banking, they say, 'contracts, sacred.' But the other element of your question is we don't want to change the bankers, because if we do, if we put honest people in, who didn't cause the problem, their first job would be to find the scope of the problem. And that would destroy the cover up.
BILL MOYERS: The cover up?
WILLIAM K. BLACK: Sure. The cover up.
BILL MOYERS: That's a serious charge.
WILLIAM K. BLACK: Of course.
BILL MOYERS: Who's covering up?
WILLIAM K. BLACK: Geithner is charging, is covering up. Just like Paulson did before him. .... the entire strategy is to keep people from getting the facts.



Yep. What I've been saying.

 

[linusrichard]

I've contracted out my opinions on the economic mess to Paul Krugman. If he says Obama and Geithner are Doing It Wrong (and he is), then that's what I believe. But I haven't heard him say Obama and Geithner are breaking the law, so I don't believe that.

Krugman for Treasury Secretary president philosopher king!

 

[Oliver]

I've contracted out my opinions on the economic mess to Paul Krugman. If he says Obama and Geithner are Doing It Wrong (and he is), then that's what I believe. But I haven't heard him say Obama and Geithner are breaking the law, so I don't believe that.

Krugman for Treasury Secretary president philosopher king!

Maybe Krugman simply doesn't know the "Prompt Corrective Action Law"...

According to Wiki, here's a partly answer to the OP's question:
http://en.wikipedia.org/wiki/Prompt_Corrective_Action_Law

Prompt Corrective Action is a US federal law mandating that a FDIC regulated institution with insufficient capitalization be taken into receivership by the FDIC in order to minimize long-term losses to the FDIC.[1] In an interview on Bill Moyers Journal broadcast April 3, 2009, former bank regulator William K. Black asserted that federal officials were ignoring the PCA law requiring them to put insolvent banks into receivership. [2] The PCA law applies only to institutions insured by the FDIC and therefore would not afffect, for better or worse, companies such as AIG.

 

[Oliver]

So which institutions were/are insured by the FDIC then?

 

[drkitten]

Maybe Krugman simply doesn't know the "Prompt Corrective Action Law"...

Or maybe he knows it better than you (or Black). As Rika points out (and you can confirm for yourself -- the relevant citation is USC Title 12, Chapter 16, § 1831o) the law includes "[r]equiring the institution to take any other action that the agency determines will better carry out the purpose of this section than any of the actions described in this paragraph" as an optional action.

 

[Brainster]

Obama or Bill Moyers?

Going on past performance, I'd say Bill Moyers is more likely to be deceptive.

 

[Pardalis]

Gee, Oliver is mad, everybody, duck for cover!

 

[mhaze]

so which institutions were/are insured by the fdic then?

banks. So you've got the bad boy .... the FDIC.

The presumption that Geithner is at fault implies that the FDIC is under the Treasury. Is that right?

 

[MattusMaximus]

I would say that Obama is deceiving me, except that I can't, what with these government-enforced mind-control implants and all