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Geithner 'burned billions' on CIT

By: David Freddoso
Online Opinion Editor
11/02/09 11:21 PM EST

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.

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Reader Comments

All comments on this page are subject to our Terms of Use and do not necessarily reflect the views of the Examiner or its staff. Comment box is limited to 250 words.

ggordon

Nov 3, 2009

you mean he was part of a fraud foisted on Americans. These so called "hope and change" appointees don't seem to have a simple knowledge of economics, or they are defrauding us. Or both.

bobc

Nov 3, 2009

If Madoff is in prison, why aren't half of our Congress and many of Obama's staff?

Stealing is stealing!

megapotamus

Nov 3, 2009

The only thing I find shocking about this is apparently serious people thought we were really "investing" and "lending" with this bailout crapola. I wrote off the full amount when the deal was inked.

Austin

Nov 3, 2009

What a maroon!!!

Louis

Nov 3, 2009

Hmmmm....CIT's "senior creditors"....Goldman?

Ursus

Nov 3, 2009

Maybe this is part of the Obama white house strategy for boosting the dollar--burn some of it so that there's less floating around?

ronnor

Nov 3, 2009

What would a tax cheat care about taxpayer money since he doesn't pay it. This bunch of incompetents who had never had any experience in having to make a living, who have always been sucking at the public teat makes me sick. They can't even speak of millions any more, its billions to burn, trillions to throw away so that the country turns into a banana republic; is this the plan, seems so. Make the People so desperate that dictatorship of the proletariat is possible and reeducation camps for the recalcitrant, why is this seeming to be a possibility now?

Constitution First

Nov 3, 2009

America elected a known Marxist: He said he was going to: "Fundamentally change this country", "Redistribute the Wealth", "Double your energy costs" and give ACORN (organized criminal empire and voter fraudster's) "a place at the table". But just like Osama, we didn't believe him, when he was, in fact, telling us exactly what he was planning to do. That is the difference between voting for what you "Hope for" vs, voting for what you know is more likely to be true. Now he has surrounded himself with 48 Marxist Czars that are unapproved by Congress and unanswerable to anyone except him. Isn't that special? Hoax and Chains: just as promised.

myna

Nov 3, 2009

Is that mean if conservatives win on all 2010 elections, we can bring all these people to be criminally liable on burning taxpayers money?

Slayer

Nov 3, 2009

There is no question that the Obama Administration is doing this deliberately. This is nothing more than ruining the country in order to force everyone to turn to the government for everything, giving the government total control over every aspect of our lives.

jens

Nov 3, 2009

Geithner is not the sharpest tack in the emperor OB's box. Mr. G neglected to pay his taxes to the tune of about $ 80000 before he was installed in the emperor's cabinet.

Sad part is indeed we taxpayers are LAST in line to get our money back.

Very sad, very poor work by a Secretary of the Treasury.

jensad

Spendulus

Nov 3, 2009

Just another nail in the coffin of those with a Liberal Authoritarian Personality Disorder.

I disagree that ruining the country would force people to turn to the government. Turning away from the government and rejecting the craziness is actually required.

Spendulus
www.BestofBeck.com

David LeBlanc

Nov 3, 2009

So, will Mr. Geithner resign?

In this era of trillion dollar deficits, what's billion or two? So I guess the taxpayers will continue to pay the bumbling Mr. Geithner his salary and benefits. After all, Barack Obama did say he was the only man capable of getting us out of our financial mess.

If that is so, we are really screwed.

goose

Nov 3, 2009

I will claim it on my taxs!!!!!!! you should too.

MarkC

Nov 3, 2009

Everyone blaming Obama for this try using Google. CIT was paid during the Bush era. This isn't about Democrats or Republicans, stop trying to point a finger at a party, this is about our government.

Happy41

Nov 3, 2009

Why should this surprise anyone??? He cheated on his TAXES, but yet he can HAND OUT BILLIONS OF OUR HARD EARNED MONEY and give it away. What a STUPID PIECE OF HUMAN BEING THIS GUY IS. He doesn't have BRAIN 1, except how to cheat the GOVERNMENT. But then that is what this administration is doing, CHEATING US OUT OF OUR HARD EARNED MONEY and doesn't give a HOOT about any of us who are LAYED OFF. Many of us have lost jobs, homes and money and they don't seem to care one bit. Also why has this GOVERNMENT gotten by this long without anyone BERATING THEM for the HOLD UP OF THIS H1N1 vaccine. This administration new long ago that we needed this vaccine and now it's almost too late for many of the people who need it RIGHT NOW. GOD HELP US... THIS MAN AND HIS THUGS ARE DESTROYING OUR GREAT COUNTRY.

Joe

Nov 3, 2009

Without the CIT bailout we would have seen empty shelves in most retail outlets this Christmas, as CIT is the biggest lender in that industry. Either we (the taxpayers) bail out these behemoths so they can continue to lend, or we go without for a (little?) while. Which is worse?

mike

Nov 4, 2009

How come he is not in jail?

LJ from Kansas

Nov 4, 2009

What did you expect from a tax cheat that was hand picked by a Marxist President. Both should be in jail with Burnie Maddog. Wake Up People!!!!

AndyBean

Nov 4, 2009

The riddler strikes again!

tell

Nov 4, 2009

senior creditor was Goldman Sachs-- this was nothing more than a money moving scheme.

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Geithner 'burned billions' on CIT

By: David Freddoso
Online Opinion Editor
11/02/09 11:21 PM EST