New Book Reveals Geithner Ignored Obama’s Order on Banks
- Posted on September 16, 2011 at 7:28am by
Jonathon M. Seidl
- Print »
- Email »
President Barack Obama smiles as Treasury Secretary Tim Geithner speaks about executive compensation, Wednesday, Feb. 4, 2009, in the Grand Foyer of the White House in Washington. (AP Photo/Charles Dharapak)
NEW YORK (AP) — A new book offering an insider‘s account of the White House’s response to the financial crisis says that U.S. Treasury Secretary Tim Geithner ignored an order from President Barack Obama calling for reconstruction of major banks.
According to Pulitzer Prize-winning author Ron Suskind, the incident is just one of several in which Obama struggled with a divided group of advisers, some of whom he didn’t initially consider for their high-profile roles.
Suskind interviewed more than 200 people, including Obama, Geithner and other top officials for “Confidence Men: Wall Street, Washington, and The Education of A President,” which will be released Sept. 20. The Associated Press purchased a copy on Thursday.
The book states Geithner and the Treasury Department ignored a March 2009 order to consider dissolving banking giant Citigroup while continuing stress tests on banks, which were burdened with toxic mortgage assets.
In the book, Obama does not deny Suskind’s account, but does not reveal what he told Geithner when he found out. “Agitated may be too strong a word,” Suskind quotes Obama as saying. Obama says later in the book that he was trying to be decisive but “the speed with which the bureaucracy could exercise my decision was slower than I wanted.”
Geithner says in the book that he did not recall that Obama was mad at him about the Citigroup decision and rejected allegations contained in White House documents that his department had been slow to enact the president’s plans.
“I don’t slow walk the president on anything,” Geithner told Suskind.
“The Citbank incident, and others like it, reflected a more pernicious and personal dilemma emerging from inside the administration: that the young president’s authority was being systematically undermined or hedged by his seasoned advisers,” Suskind writes.
Suskind states that Obama accepts the blame for mismanagement in his administration while noting that restructuring the financial system was complicated and could have resulted in deeper financial harm. One of the major complaints about Obama’s administration is that it was too easy on major financial institutions, including Citi. The president had wanted Treasury officials to focus on a proposal to dissolve the bank, but no plan was ever created, the book states.
In a February 2011 interview with Suskind, Obama acknowledges another ongoing criticism – that he is too focused on policy and not on telling a larger story, one the public could relate to. Obama is quoted as saying he was elected in part because “he had connected our current predicaments with the broader arc of American history,“ but that such a ”narrative thread” had been lost. Obama observes that he and fellow Democrats Bill Clinton and Jimmy Carter “all have sort of the disease of being policy wonks.”
Suskind’s book supports other accounts of disagreement among advisers over how large a stimulus was necessary to revive the economy and how aggressively to deal with financial institutions that had become “too big to fail.”
Larry Summers, the former White House economic adviser, is quoted as lamenting that he and others felt “home alone” and that mistakes made under Obama would not have happened under President Clinton, for whom Summers also served. Interviewed by Suskind, Summers initially denied making such comments, then acknowledged them, saying he was frustrated at having “five issues” of major importance to deal with at once and not “five times as many” officials to handle them.
The book says one of Obama’s top advisers, former chief of staff Rahm Emanuel, was not the president’s first choice for the position. According to Suskind, Emanuel’s name was not even on the initial short list, which included White House aide Pete Rouse.
An investigative reporter, Suskind won a Pulitzer Prize in 1995 while working for the Wall Street Journal.
His other books include “The Way of the World” (2008), which focused on national security, and “The Price of Loyalty” (2004). That best-seller was an account of the Bush administration and its first treasury secretary, Paul O’Neill, that includes what became a widely cited remark by then-Vice President Dick Cheney: “Reagan proved that deficits don’t matter.”
Suskind’s 1998 book, “A Hope Unseen,” grew out of the series of articles that won him a Pulitzer for feature writing.
Other recent books about the Obama administration include Bob Woodward’s “Obama’s Wars,” which focused on foreign policy, and Jonathan Alter’s “The Promise,” which covered his first year in office.
Popular Stories
Does Misstated Marathon Claim Prove Paul Ryan Is Dishonest? (POLL) 708 Comments
Paper Details Obama Admin’s Alleged Secret Note Sent to Iran: If Israel Attacks, We Won’t Get Involved 561 Comments
‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 380 Comments
This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 371 Comments
Roseanne Barr: Most Billionaires ‘Violent Pedophiles’ & ‘Heartless’ Cocaine Addicts 363 Comments
Faith
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 371 Comments
Pakistani Muslim Cleric Accused of Framing Disabled Christian Girl in Koran-Burning Case Read More- ‘Made Up Religion’: TV Historian Enrages Muslims, Receives Threats After Producing UK Documentary Questioning Islam’s Beginnings 380 Comments
Meet the Controversial German Imam Accused of Brutally Beating His Wife & Pushing Sharia Law Read More
‘Self-Proclaimed Messiah’ & Unification Church Leader the Rev. Sun Myung Moon Has Died — Here’s His Life Story Read More
Business
President Obama Issues Major ‘Green Energy’ Executive Order 304 Comments- Germany’s Upcoming Court Ruling Will be Huge for the EU Read More
Ford Looks to Beat Toyota for Best-Selling Car in 2012 With This Model 149 Comments
Bernanke & QE3: Here’s What You Need to Know Read More- ‘Extortion’: Why Did the Labor Department ‘Drop the Hammer’ on Oregon Farmers? 302 Comments
Technology
- This Is the Creationists‘ Response to Scientist Bill Nye’s Viral Pro-Evolution Video Claiming They Harm Children 371 Comments
‘TaserDrone’: Hackers Weaponize Quadcopter With Actual ‘Shocking’ Technology Read More
Ever Heard of the Wild ‘Burning Man’ Festival in the Middle of the Nev. Desert? Here’s Your Primer Read More
Stanford Develops Technology ‘Better Than Steroids’ for Athlete Recovery Read More
Have You Pretended to Know What ‘the Cloud’ Is? You’re Not Alone Read More
Submitting your tip... please wait!
Comments (72)
eyestoseeearstohear
Posted on September 16, 2011 at 9:06amI‘m REALLY TIRED OF Talk Show’s defending Obama’s actions.
They ALL are taking the approach of ” he’s clueless” OR
“ what he needs to do to turn around the economy”….
TRUTH IS….HE IS DELIBERATLY DESTROYING THE ECONOMY!!!
AND – has been doing so FROM DAY ONE!
The statement Obama made BEFORE HE TOOK OFFICE, saying he
” couldn’t wait to shut down the Coal Industry”….
OUGHT TO HAVE BEEN AN INDICATION OF HIS INTENTIONS.
They are reporting and commenting on EACH of his wrong-doings BUT-
ARE NOT compiling them as a WHOLE and showing IT IS a deliberate
formula to destroy our System AND holding our Reps RESPONSIBLE.
Instead- our Reps are “offering HALF-AZZ solutions” that ARE NOT GOING TO
SOLVE THE PROBLEM – because Obama IS COUNTER-ACTING OR RE-JECTING
THE RIGHT SOLUTIONS.
So, WHAT THEN?
Report Post »Obama just goes on his merry way, and CONTINUES his destructive path –
It seems that Congress feels their role is to WAIT until something happens-
then they ASK if they can do – it’s like they are playing ” Mother, may I.
(remember that game?)
VApatriot2
Posted on September 16, 2011 at 10:19amTop down bottom up…Inside out!!!
Report Post »Heather Mae 74
Posted on September 16, 2011 at 1:11pmThis is a bunch of crap made up to make it look like Obama wasn’t in the bag of the likes of Goldman sacs, and other bailed out crony capitalist that are unpopular with the people “It wasn‘t Obama’s fault Geithner did whatever he wanted” Yeah right this president makes Bill Clinton look truthful I don’t know if my family can survive another year of this treasonus commie in charge
Report Post »thegreatcarnac
Posted on September 16, 2011 at 1:54pmYou are right. Obama is the affirmative action president. He is always given a huge “benefit of the doubt’ from the media. Don’t you know…he’s black. He is also destroying our economy ON PURPOSE. He is trying to completely ruiin us economically to usher in socialism. That has been his plan since he has arrived on the scene.
Report Post »VigilantGuardShark
Posted on September 16, 2011 at 1:59pmI couldn’t agree with you more, Obama is served by some insidious desire amongst the media to protect him from his mistakes. Don’t they realise he wants all of these problems to decend upon America, he wants us to fall, or at least be so weak we are unable to stand as an effective deterant against the invasion of Israel. Unfortunately, he’s almost succeeded in his goal.
Report Post »Jaycen
Posted on September 16, 2011 at 4:32pmRight on to most of the people who’ve already commented. This reads like Obama’s “get out of jail free” card.
I’m not responsible for anything. It’s not my fault. These guys weren’t my first choice. They didn’t listen to me. It’s not their fault either, I didn’t resource them properly.
At best, it shows Obama & friends are inept boobs. At worst, it’s a fluff piece designed to help them cover up their true intent.
Seriously, why couldn’t President Obama get his “first picks”? Did highly competent people look the President of the United States of America in the eye and say, “Nah, I’ve got better things to do with my time”?
Is that really what they want to claim? If so, that shows the really competent folks recognized Obama as an inept boob from the word go. This is especially true if he couldn’t get a single person to work for him from his “short list”. My goodness, what have we gotten ourselves into with this guy?
Report Post »THEBAT
Posted on September 16, 2011 at 7:12pmAGREE! yell it everywhere ,this is no joke ,this is a MARXIST everyones all talking about socialist ,this guy has bigger plans than socialism,Ive researched him since he was a senator and how on earth everyone didnt know something” about his ideology is most disturbing, i really hope the GIANT that AWAKEND during WW2 ,there eyes are open now ,cuz this is AMERICAS LAST CHANCE, he has the knife on your jugular and you are still breathing which means you have a chance to stop the madness.He will cut your throat! he is a narcissist ,its not about you and me,its about him and what he wants and he feels nothing, look at all the pictures of him and look at his eyes.He would order you dead and be pissed you interupted his golf game.then get on Airforce one and fly to a million dollar vacation spot ,meet his wife and have a party.sweep you into the Ocean with the imaginary body of Bin Ladin, any proof on that yet by the way?
Report Post »just the facts
Posted on September 17, 2011 at 11:22amIt looks as though little Timmy will be a a escape goat for barry. Good little Timmy – throwing himself under the bus befor barry tarnishes his record.
All smoke and mirrors, all deception.
Report Post »SheriS
Posted on September 16, 2011 at 8:46amI find it interesting that all these people who so adored the Prez are now turning on him and speaking their real opinions of the worst Prez in my lifetime! Finally we hear the real truth from the inside! Most Americans with a brain have know Obama was totally inept as he had never led in anything before in his life! Finally the truth is out and the Prez is proven to be a total loser at doing anything!
Report Post »slickmeister
Posted on September 16, 2011 at 9:42amSo what are the libs hoping for? A Romney presidency that they can easily win back in 2016 – Queen Hil‘ry’s final chance?
Report Post »maizy
Posted on September 16, 2011 at 5:03pmGlenn predicted a year ago that Hilary will be the Democrat nominee in 2012. He said she will appear moderate compared to Obama. However, Soros will still be pulling the strings. She‘s just as liberal as Obama and will do Soros’ bidding. They are good friends. Notice on Drudge there is the article how Hilary is the most popular politician in the world, we got Carville coming out against Obama, we got this story, we got the clinically depressed story coming in the NYT. They have started undermining Obama and Hilary will be asked for the good of the country to be the nominee. Has Glenn been wrong yet?
Report Post »countryfirst
Posted on September 16, 2011 at 8:42amThe only book that will show BO true direction is Rules for Radicals. At the last debate Romney’s and Perry’s books were quoted ( why doesn’t any of them quote BO’s o two books?) I did, highlighted some things and got others concerned about this man.
Report Post »copatriots
Posted on September 16, 2011 at 10:10amExcellent point, Country! The GOP candidates actually should attack Obama now because I don’t think he is going to participate much in debates once the Repubs decide on their nominee. Not that he’s my favorite but Newt does seem to be the only one who is really doing that in the debates.
Report Post »Chuck Stein
Posted on September 16, 2011 at 5:58pmActually, it is becoming commonly accepted that Bill Ayres wrote Obumbler’s first book.
Report Post »dsm
Posted on September 16, 2011 at 8:41amObama and his administration need to go. Geithner and Bernake need fired This administration has been corrupt since day one.
Report Post »Benbit
Posted on September 16, 2011 at 6:25pmAnd here go’s the rest of our cash,,,
The European Central Bank said it would allow banks to borrow dollars for up to three months, instead of just for one week as before, giving them breathing room for the rest of the year. The E.C.B. said it was acting in cooperation with the Federal Reserve of the United States, the Bank of England, the Bank of Japan and the Swiss National Bank.
Now it’s the POTUS is “ ALL IN ”
Report Post »eyestoseeearstohear
Posted on September 16, 2011 at 8:40amDoes anyone know of a link to listen to the talk Obama gave to the Hispanic Caucus?
I believe it was given a few days or a week ago – I heard a clip of it via radio- but can’t
find the full speech.
What I heard was quite alarming – IF anyone knows where to find it – please post a link.
Report Post »Thanks.
burr99
Posted on September 16, 2011 at 8:36amAmazing to watch the progressive left trying to position itself fro 2012. If we are focused, there should be no reason this moron stands a chance!
Report Post »heavyduty
Posted on September 16, 2011 at 8:34amTim Geithner is just trying to cover his own butt now. I would imagine that most of the Democrats are going to do the same because they are figuring out that Obama is not re-electable anymore. So they are going to try to minimize the damage as much as they can. .
Report Post »Unstable Phenomenon
Posted on September 16, 2011 at 8:38amMost of the democraps have been hitting the high road already. Little Timmy is just starting to figure this out.
Report Post »Gonzo
Posted on September 16, 2011 at 8:34amEvery member of his team should ignore every order he gives. Maybe we could get out of this mess. For the first time in my life, I’m proud of Timmy Geithner.
Report Post »eyestoseeearstohear
Posted on September 16, 2011 at 8:30amThis is a BUNCH OF CRAP!
They are “ falling on the sword FOR OBAMA”, in an attempt to save his presidency.
They see the hand-writing on the wall…and know SOMEONE has to take the fall -
and would rather it be Obama’s MINIONS rather than Obama – and in doing so, the
OVERAL GOAL GOES ON TO BE ACCOMPLISHED.
DON’T FORGET – many of this Administrations corrupt players have left or bailed out-
i.e. Rahm Emmanuel, etc.
They too, played a role in this and did what Obama instructed them to do –
their hands are not clean- just removed from the current corruption.
Obama is the RING LEADER IN THIS ADMINISTRATIONS CORRUPTION -
Report Post »AND THEY ALL ARE GUILTY FOR TAKING PART IN IT!
Now- they are going to play the “ blame game” on each other – BUT – will try to
save Obama’s azz to REMAIN IN OFFICE.
LovingAmerica
Posted on September 16, 2011 at 8:28amYes, and now this inept President, who cannot think his way through a game of Candy Land, has our healthcare solidly in his hands. He stole our right to decide for ourselves what we want and need, forcing us to pay through the nose for government run healthcare, threatening us with imprisonment and financial penalties if we do not comply, throwing his middle finger up to the entire citizenry of this country. God willing, President Obama will end up in prison – where he belongs.
Report Post »suzy000
Posted on September 16, 2011 at 8:26amWell if this is true and Obama is not running this WH as he should be then America definitely needs to replace this weak leader. I have always known that Hillary, Gates and Panetta pretty much called the shots on foreign affairs and the DOJ are mad dogs running loss but now it may be true he is not even king of his own castle? And this is suppose to be the most powerful man of the free world? Hurry 2012….we can’t correct this soon enough.
Report Post »hauschild
Posted on September 16, 2011 at 8:24amHow convenient; Obama distancing himself from his own hires right around the time the election cycle begins.
Report Post »BellaMia7
Posted on September 16, 2011 at 8:21amObama needed some help shifting the blame away from his brilliance.
Report Post »SamIamTwo
Posted on September 16, 2011 at 8:20amIf he can’t control the SEC of TRES, how can he be president? T3 should have either been fired on the spot, or taken to the wood shed…Past presidents have been known to take an insubordinate to the wood shed. But with Obama it’s like water off a ducks back. Quack!
T3 is part of the problem…he has no solutions. He worked for the federal reserve and is there to protect the existing system.
Report Post »FREDD The WILSON
Posted on September 16, 2011 at 8:10amSounds like the “poliburo” of the White House had a little misunderstanding in the proceedures of conquer and destroy.
Report Post »Redscot
Posted on September 16, 2011 at 1:18pmYou are so right. Obrat intends to dismantle things and T fumblefooted it – thank goodness.
Report Post »jskol
Posted on September 16, 2011 at 8:09amObama as always been in over his head. What an jerk.
Report Post »azghost
Posted on September 16, 2011 at 8:02amCitbank:The Saudi owned bank
Report Post »Rickfromillinois
Posted on September 16, 2011 at 8:00amIt sound like Mr. Obama isn’t really in charge, his advisers are. In most jobs that I have been on if the boss told you to do something and you ignored him, you got fired. Of course if your boss is an idiot maybe it’s a good thing. Restructure the banks? I’m sure that with his vast experience in the banking and business world the brilliant Mr. Obama would have improved it greatly.(sarcasm)
Report Post »SpankDaMonkey
Posted on September 16, 2011 at 7:54am.
Report Post »The best we have?…..
grandmaof5
Posted on September 16, 2011 at 7:54amIt doesn’t matter which angle these people decide to take, the bottom line is “top down, bottom up” and the destruction of our way of life. As long as the ultimate goal is met, casualties along the way are just that, casualties of their war on the American way of life. No one can be as collectively stupid as this group of people – it is by design.
Report Post »Snowleopard {gallery of cat folks}
Posted on September 16, 2011 at 8:07am@Grandmaof5 — Indeed that is what matters, the Van Jones quote “Top down, Bottom up, Inside out” and that is what we are seeing here; the timing of this book does seem a little more than coincidence as Mr Obama ratchets up his campaign mode.
I wonder if it has been released to try and make it appear that Mr Obama had staff going rouge on him to take some political heat off of his back?
So does this sound like an insane idea or not? Also how is the weather in Fla today? Probably better than DC that is in a meltdown almost all the time now…
Good to see you back on the Blaze again. Come and check out some of my latest works on the link below…
Report Post »http://artinphoenix.com/gallery/grimm (cat folk art)
Fina Biscotti
Posted on September 16, 2011 at 7:51amNo one goes against the Thug King. That is all bullshyt.
The White House is trying to find any way to get Obama off the hook for his EPIC FAILURE in hi-jacking the White House – through the Vote rigging schemes of radical leftist organizations such as ACORN, SEIU, NAACP, et al.
http://www.youtube.com/watch?v=3EgO6bQ9fWo&feature=related
Report Post »Darla_K
Posted on September 16, 2011 at 8:15amI would hate to be the one cleaning the mess up once he leaves the white house.
Report Post »copatriots
Posted on September 16, 2011 at 8:27amAgreed FINA. It is all POSTURING! I was wondering what was going on a few days ago when Geitner “joked” about he wanted to get fired. Now it makes perfect sense. He is going to be the Administration’s fall guy for the pathetic state of the economy. The most disgusting part is they don’t even play this media manipulation game all that well. You would think they would try a little harder to not be so obvious.
Report Post »MidWestMom
Posted on September 16, 2011 at 7:50amlaying the groundwork for yet another Obama “it’s not my fault” whine…
Report Post »PA PATRIOT
Posted on September 16, 2011 at 7:46am(Considered dissolving “Citibank”)
Report Post »Now that is an example of pure Socia….. oops oops,….I mean structured Gubberment interventions,
Screw the Capitalist idea of letting the weakest dissolve into the history books.
TxMadMac
Posted on September 16, 2011 at 7:36amYa right like I believe that one ! I wonder if he earned his prize just like obama earned his !
Report Post »AJAYW
Posted on September 16, 2011 at 7:31amTax cheat Timmy
Report Post »