Our Money, Up in Smoke

Posted by Mark Noonan in Obama Administration on November 4th, 2009 at 02:28am with 2 responses.
Tags: .
Click here to get Caucus of Corruption: The Truth About The New Democratic Majority by Matt Margolis and Mark Noonan.

Thank you, Obama and co:

Treasury Secretary Tim Geithner is directly to blame for taxpayers’ loss of $2.3 billion in the CIT bailout, says professor William Black of the University of Missouri-Kansas City School of Law and a former federal bank regulator.

“We put ourselves on the hook in a completely inept way where we lose first. We lose entirely as the taxpayers.”

Black specifically faults Geithner for negotiating an arrangement in which CIT can repay its senior creditors 70 cents on the dollar in bankruptcy, but taxpayers are completely left out in the cold for their investment.

When Geithner pumped taxpayers’ money into CIT this summer, “it’s like he burned billions of dollars again in government money, our money, gratuitously,” Black said.

What I’ve heard on the effect of CIT bankruptcy: a lot of small and medium sized firms might be forced in to bankruptcy because they’ve lost the lines of credit they need to operate on a day to day basis.

This is very ugly – and all that is wrong with politics and business in America.

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Mark Noonan is co-author (with Matt Margolis) of Caucus of Corruption: The Truth About The New Democratic Majority. He also blogs at Nevada News and Views. Follow Mark on Twitter.

2 Responses to “Our Money, Up in Smoke”

  1. neocon1 says:
    November 4, 2009 at 8:06 am

    Gee ya think?

    Isnt this the dude who COULD NOT even figure out how to use TURBO TAX?
    a TAX CHEAT and now we are surprised?

    —————————————–
    Treasury Secretary Tim Geithner is directly to blame for taxpayers’ loss of $2.3 billion in the CIT bailout, says professor William Black of the University of Missouri-Kansas City School of Law and a former federal bank regulator.

    “We put ourselves on the hook in a completely inept way where we lose first. We lose entirely as the taxpayers.”

  2. fr00tn00b says:
    November 6, 2009 at 6:04 pm

    SECOND POST!!!