Did Tim Geithner Leak Every Fed Announcement To The Banks?
January 18, 2013 - 4:05pm
On August 17, 2007, the Fed's Board of Governors announced a key change to primary credit lending terms, whereby the discount rate was cut by 50 bp — to 5.75% from 6.25% — and the term of loans was extended from overnight to up to thirty days. This reduced the spread of the primary credit rate over the fed funds rate from 100 basis points to 50 basis points. News of the emergency measure was supposed to be kept secret from market participants as it was substantially market moving. It wasn't. And just when we thought our opinion of the outgoing Treasury Secretary and former NY Fed head Tim Geithner, whose TurboTax incompetence is now legendary, couldn't get lower, it got lower. Much lower. From the August 16, 2007 transcript (page 13 of 37) of the conference call preceding this announcement. MR. LACKER. If I could just follow up on that, Mr. Chairman. CHAIRMAN BERNANKE....
Continue reading this article »
Share This Article: