Treasury Scam

Henry Thompson

 

The Secretary of Treasury is responsible for paying the bills of the US government.If tax revenue falls short of the bills to be paid, the Secretary borrows money by printing and selling US bonds as promises of future payment in hopes of future tax revenue.During the recession of the late 2000s ex-Secretary Tim Geithner bought bonds from banks who then lent the borrowed funds at higher interest rates.The Treasury provided insurance to the banks guaranteeing them no more than a 5% loss on their loans.US taxpayers provided cash as well as subsidized default insurance for Geithnerís banking friends.This scam went well beyond the job description of the Secretary of Treasury.†††††