Treasury Scam

Henry Thompson


The Secretary of Treasury is responsible for paying the bills of the US government, hardly the most exciting job in the world.If tax revenue falls short of bills to be paid, the Secretary borrows money by printing and selling US bonds as promises of future payment.In an effort to rescue select banks, ex-Secretary Tim Geithner bought bonds from the banks who then lent the funds at higher interest rates.The Treasury provided insurance to the banks guaranteeing no more than a 5% loss on their lending.US taxpayers provided cash as well as subsidized default insurance for Geithnerís banking friends.††††