The name of this publication is Wall Street Insights & Indictments for a reason.
It’s a platform for calling out the trash generated by Wall Street or government money-grubbers that should be taken to the garbage heap.
Here’s a prime example of what I mean.
Timothy Geithner, the former President of the Federal Reserve Bank of New York and former Secretary of the Treasury, went from bailing out giant predatory banks, to pretending to chastise them, to becoming President of Warburg Pincus – a New York investment firm that owns a private equity fund that owns Mariner Finance, a predatory lending heap.
What Mariner does (and why) tells us more about Timothy Geithner than any statement he released as Treasury Secretary.
Geithner’s Government Work
Okay, I gave you the ending just then. Of course, government gangsters are money-grubbers and do what they do ultimately to get paid in spades. That’s the game. That’s the revolving door.
Tim Geithner’s no different, though a lot of people thought he was.
From November 3, 2003, to January 26, 2009, Geithner was President of the Federal Reserve Bank of New York.
The New York Fed is the most powerful regional Fed Bank, by a long shot.
The truth is there are 12 Fed branches or districts, because having only one branch in New York, where all the power lies, would have made the passage of the Federal Reserve Act impossible to sell to a duped Congress and public in 1913.
The president of the NY Fed is a permanent member of the FOMC, the Federal Open Market Committee, the committee that sets rates. It’s the NY Fed that executes all the Fed’s open market operations, meaning it does all the Fed’s trading. It’s also where the banking elite meets regularly with their primary regulator, the New York Fed.
It was under Geithner’s eye that the Fed bailed out all the failing banks that were “too big to fail.”
For his saving of the big greedy banks from themselves, he was offered the Treasury Secretary’s job by President Obama.
There, he continued to pontificate about how bad Wall Street could be and how Dodd-Frank was a good thing.
And importantly, pontificating how, “The financial crisis exposed our system of consumer protection as a dysfunctional mess, leaving ordinary Americans way too vulnerable to fraud and other malfeasance.” And how, “Many borrowers, especially in subprime markets, bit off more than they could chew because they didn’t understand the absurdly complex and opaque terms of their financial arrangements, or were actively channeled into the riskiest deals.”
Then he left government service to get paid, properly, for all his saving grace.
How Hypocrites Make Their Money
As President of Warburg Pincus, Geithner knows what Mariner Finance does. Warburg’s private equity arm bought the finance company for $234 million, months before Geithner entered in November 2013.
Mariner Finance is in the “consumer installment loan” and insurance business.
That’s not property and casualty-type insurance. It’s insurance that’s sold, predator-style, to customers who get predatory loans from Mariner, who want to be insured if they die, get laid off, or otherwise can’t pay back the loans they are struggling with. That kind of insurance.
One small reason customers may have a hard time paying back loans is the interest rates they’re charged, not to mention the insurance fees they’re assessed on top of the loans they get. Most of them are close to the uppermost limits of state usury laws… Like in the 30% range.
It’s a good business being predatory.
One of Mariner’s marketing skills is sending out millions of post-dated checks to hard-up customers who they’ve figured out can use the money. All would-be customers have to do is sign the checks and presto, they’ve signed up for a loan.
Once they’re hooked, Mariner sales reps call them and weight them down with additional loans and insurance “products” they assure them will help them sleep better.
To say it’s working is an understatement. Mariner has over 500,000 active customers across 450 branches in 22 states.
And, yes, Mariner makes a pretty profit. But, that’s not the point.
Mariner’s entitled to make money, and Tim Geithner’s entitled to make money after all his dedicated years of government service in the service of big banks and Wall Street.
All I want to point out is that once pontificating protectors, especially government high-fliers like Geithner – and Robert Rubin before him, as well as Larry Summers – and their self-serving, “Screw the public, I’m entitled to my money”-types, are proof that our government’s gone wild.
We’re all entitled to make money and not have that infringed upon by the whims of the banking elite and the politicians that promise they have our best interests at heart. That’s why I was so thrilled when a trusted friend of mine broke the Wall Street “code of silence.”
Two years ago, he revealed on camera a simple pattern that he believed any investor could use to make a fortune… He put $1.95 million on the line and after showing his readers 243 winning play opportunities – he is back with an even larger wager. You won’t want to miss this, click here to learn the secret behind this success.