The Crony Secretary

Henry Thompson

 

The Secretary of Treasury collects taxes and pays the bills of the US government.  If tax revenue falls short of government spending, the Secretary sells US Treasury Bonds to raise cash promising to repay later.  The Secretary during the financial crisis, banker Tim Geithner, lent his banking colleagues cash for them to re-lend commercially.  Geithner also provided insurance guaranteeing no more than a 5% loss on their loans!  Geithner did not care about the cost of the insurance paid by taxpayers, who also provided the cash for commercial loans.  This crony capitalism goes well beyond the job description of the Secretary of Treasury.