When it comes to hurling accusations of breaking laws, the Obama Team may want to stop and think before they stupidly suggest that Mitt Romney is a felon because of his ties to Bain Capital. Why?
Well, there is concrete evidence that Obama’s Secretary of the Treasury, Tim Geithner, failed to stop criminal activity:
The Federal Reserve Bank of New York learned in April 2008, as the financial crisis was brewing, that at least one bank was reporting false interest rates.
At the time, a Barclays employee told a New York Fed official that “we know that we’re not posting um, an honest” rate, according to documents released by the regulator on Friday. The employee indicated that other big banks made similarly bogus reports, saying that the British institution wanted to “fit in with the rest of the crowd.”
Although the New York Fed conferred with Britain and American regulators about the problems and recommended reforms, it failed to stop the illegal activity, which persisted through 2009.
When a publicly traded bank is falsely reporting to the public on financial information, a fraud is being perpetrated.
The legal definition of fraud is quite clear:
A false representation of a matter of fact—whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed—that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury.
So Tim Geithner, as the head of the New York Fed, was reliably informed that Barclay’s was lying about its interest rate and he did nothing to blow the whistle or punish the law breaker? Short answer, YES!
Here’s a nice video summary of the case, and this was before the news emerged that Tim Geithner knew of this and did nothing:
This will be a big story. Geithner, who already wants to move into the private sector, will probably walk the plank on this. Obama lives in a big glass house when it comes to enabling and tolerating criminal activity.