Powerline Blog: Documents Confirm Treasury Bullied Banks

It has been widely reported that Treasury Secretary Hank Paulson and Fed chief Ben Bernanke summoned the CEOs of America’s nine largest financial institutions to a meeting on October 13, 2008, at which they were told that their banks would be required to accept TARP money and give the federal government an ownership interest in their institutions, whether they wanted to do so or not. We have it on good authority that some of the bankers, at least, were told that they would not be allowed to leave the room until they signed documents that were presented to them at that meeting.

These chilling reports have now been confirmed by Treasury documents that were obtained by Judicial Watch through a FOIA request. These were Paulson and Bernanke’s “talking points” for the meeting….

Read it all.

Posted in * Economics, Politics, Budget, Economy, The Banking System/Sector, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The September 2008 Proposed Henry Paulson 700 Billion Bailout Package, The U.S. Government, Treasury Secretary Timothy Geithner

12 comments on “Powerline Blog: Documents Confirm Treasury Bullied Banks

  1. The_Archer_of_the_Forest says:

    The Federal Gov’t resulting to Gestapo tactics? Surely not.

  2. Words Matter says:

    Never waste a good crisis!

  3. Christopher Johnson says:

    I wouldn’t call them Gestapo tactics. It’s more like a federal protection racket.

  4. William P. Sulik says:

    As one who has been critical of the Obama administration, I need to point out this was the Bush gang that set the lead.

  5. libraryjim says:

    Nah, they just made them an offer they couldn’t refuse.

  6. dwstroudmd+ says:

    Hmmm, was Tim Geitner a member of the Bush Administration, WPS?

  7. Br. Michael says:

    Regardless, this is wrong and is high handed government at its worst.

  8. Phil says:

    Lawless.

  9. Katherine says:

    My impression is that there is no Republican/Democrat divide at the upper levels of Big Banking and Big Regulating (and Big Business, for that matter). New boss, all the same gang. Obama can hardly distance himself from this, since he has endorsed it and made it worse on his watch. Also note that Bush has himself acknowledged that he let go of conservative principles when the markets crashed, being persuaded that this needed doing. He was never a program conservative.

  10. Jeffersonian says:

    [blockquote]As one who has been critical of the Obama administration, I need to point out this was the Bush gang that set the lead. [/blockquote]

    Indeed it was, which ought to put to bed any laughable idea that the Bushies were some “free-market fundamentalists” as has been so laughably tossed about here. And now, having put an unbelievably powerful weapon in the hands of a Chicago thug pol, the Republicans are shocked that it’s being used against them and the free market. Not. Smart.

    Bush and Paulson forgot the cardinal rule of legislation: Never enact anything that you wouldn’t want your worst enemy to administer.

  11. dwstroudmd+ says:

    ““It’s time for reform that’s built on transparency, accountability, and mutual responsibility, values fundamental to the new foundation we seek to build for our economy,” the president said.”

    Groovy, baby.

  12. maz says:

    Hi,
    It is good that chilling reports have now been confirmed by Treasury documents ………….

    Thanks,
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