Notable and Quotable

Let’s just say in September, when Lehman failed, it took people two plus weeks to find out where all of the counterparties were. I am certain during that time, which is the same week that AIG came under significant duress, they thought the same thing. It would take a significant amount of time to name the counterparties.

Now, you know, several month later, they can know who the counterparties were, but at that time they didn’t know who the counterparties were, and that is what is so frightening about how perverted the system had gotten, in terms of people didn’t know where the bodies were. And so in a way, it was a Band-Aid approach to say, OK, here is money, get it where it needs to go, it buys them time.

And the government reaction in all of this seems to have been, OK, we need more time, we need more time.

The curious thing about Geithner rushing to get a plan was, they weren’t ready. You know, do your homework and then come to the table and have a real plan. But all of this, had all these unintended consequences, and so we are talking about a $165 million bonus pool when it is not the real issue.

Banking analyst Meredith Whitney, who used to be with Oppenheimer but who has now gone out on her own, last night on the Charlie Rose Show

Posted in * Economics, Politics, Economy, Office of the President, Politics in General, President Barack Obama, The 2009 Obama Administration Bank Bailout Plan, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The U.S. Government, Treasury Secretary Timothy Geithner