Wikinvest Wire

Geithner: Goldman Sachs would have failed

Monday, December 07, 2009

In a Bloomberg interview late last week, now hosted over at the Huffington Post, Treasury Secretary Tim Geithner says that none of the big banks or Wall Street firms would have survived last year if the government had simply let the crisis run its course.

Click on the image to go to the embedded video at HuffPost

This is in contrast to claims made by Goldman chief Lloyd Blankfein in a Vanity Fair interview that the Vampire Squid would have made it through without any help at all.

Here's the excerpt:
HUNT: You were the head of the New York Fed, right in the middle of the crisis a little over a year ago. Some Goldman Sachs executives have recently said their firm would have been okay without the Federal assistance and the Federal Reserve and others last year. Is that your view?

GEITHNER: My view is this.

HUNT: Did Goldman Sachs need the Federal government fourteen months ago?

GEITHNER: The entire U.S. financial system and all the major firms in the country and even small banks across the country were at that moment at the middle of a classic run - a classic bank run.

HUNT: So they would have been at risk (inaudible)?

GEITHNER: I think the system was at risk and the big institutions were not - none of them would have survived a situation in which we had let that fire try to burn itself out.
Maybe Goldman ought to double, triple, or quadruple that $500 million image-rebuilding donation to the rest of America that they recently extracted from their bonus pool.

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OldSouth said...

And, of course in Timmy and Ben's world, the most unthinkable event would have been the failure of GS.

Every small-fry bank and business can swirl the black hole of oblivion, but they were determined to protect their patron, fighting to the last dollar of our unborn grandchildren's earnings.

It's time for them to go, and for the indictments to be prepared against them all, beginning with Paulson.

Chuck Ponzi said...


In most other countries, it would be pitchforks and torches, maybe with a noose at the end.


a: this country was had, we could have survived, and so therefore Bernanke, Paulson, and everyone else are liars.


b: Bernanke and Paulson were right, and Blankfein is an enemy of the state. Vampire squid from hell is right. Seems to me they should have failed no matter what.


Anonymous said...

The lack of outrage is what I find the most disturbing. I mean, for example, wasn't this president elected to scale down the war and end it?

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