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.

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Larry C. Johnson is a former analyst at the U.S. Central Intelligence Agency, who moved subsequently in 1989 to the U.S. Department of State, where he served four years as the deputy director for transportation security, antiterrorism assistance training, and special operations in the State Department's Office of Counterterrorism. He left government service in October 1993 and set up a consulting business. He currently is the co-owner and CEO of BERG Associates, LLC (Business Exposure Reduction Group) and is an expert in the fields of terrorism, aviation security, and crisis and risk management, and money laundering investigations. Johnson is the founder and main author of No Quarter, a weblog that addresses issues of terrorism and intelligence and politics. NoQuarterUSA was nominated as Best Political Blog of 2008.
  • lola828

    Funny stuff as usual from you Larry Johnson.

    So you are equating Libor manipulation and the Fed receiving a single off-haned comment to an individual publicly claiming that he was no longer working for Bain and then filing legal documents saying he was working for Bain?

    Very very weak.

    You are so ridiculously reaching to somehow “spin” your candidates behavior. I thought the subtitle of this website was “Tired of spin?”

    “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!”

    Do you even bother to read the articles that you link to?
    The Fed conferred with American and British regulators. The British regulators, where LIBOR setting actually resides, said there was not enough evidence of explicit wrong doing by the banks. Not sure what further Geitner could have done about it. They raised their concerns with regulators, particularly British Authorities.

    However, since you brought this story up a few interesting points that come out of it:

    1) this occured under Bush, your man, a President who massively cut funding to financial regulatory agencies.

    2) Romney and your Republican party want further de-regulation of the financial industry. They want to make it more not less easy to manipulate the financial system, so a vote for your man Romney will make is more likely these things happen.

  • stodghie

    i read a story about geithner going back to the big east asis crisis. sorry i didn’t save it as it was very revealing. mr not pay tax came up with a plan that nearly bankrupted these countries asking for a “bridge” loan of sorts to get past the crisis. of coure mr clueless totally screwed it up. one government among the group fell due to what happened. the australian pm at the time gave an interview totally tearing geithner’s backside up.
    china was watching all this and thus began their huge stock piling of funds a war chest if you will that they are using today. they have been more than patient with obama. all the countries in the world but the usa have taken an audit for their future asset backed currency but the usa. obama has put it off due to wanting to be elected again caring not if the whole dang world collapses around him.
    now china has to deal with a total fool in geithner. and some wonder why putin despises him and obama? well the list why is too long to answer here.

  • alicewolf

    Oh really? All these law suits are being filed for criminal reasons……………not only were the bankers intent on making more money for themselves, they were part of a larger intention which was to cause people to die, on account of reduced healthcare, reduced income, loss of savings etc etc . So that’s why this time, the sad bleating of Bloomberg News about how sad it is that the bankers are on the hook for criminal activity and should quickly settle up to get out of legal prosecution, PERHAPS, the US Citizenry will stand up and say NOT SO FAST. You all are crooks, the entire Administration and the entire too big to fail banking industry, this is the last straw, the camels’ back is breaking.

  • TexMexSoup

    I recently watched the late Aaron Russo’s “America: Freedom to Fascism” on YouTube. The Federal Reserve Act is horrific and the likes of those lizards, I mean people like Geithner are there to protect the thievery of our tax money. Criminal? Absolutely. Watch the documentary for yourselves.

    • scottymac54

      Excellent film.



    the obots got a whole column written about them. They made the papers

  • jrterrier

    a terrific and optimistic read:

    “George Shultz has one of the most preposterously impressive résumés in recent American history. World War II Marine (1942-45); distinguished academic economist; business executive; secretary of labor (1969-70); director of the Office of Management and Budget (1970-72); secretary of the Treasury (1972-74); chairman of Ronald Reagan’s economic transition team; and the secretary of state (1982-89) who wound down the Cold War.

    [Wow, and no one ever gave him a Nobel Peace Prize]

    He’s also been an active adviser to GOP leaders including George W. Bush in the years since. . . .

    When I called out of the blue on Wednesday morning, the 91-year-old éminence grise was in his office at Stanford niversity’s Hoover Institution and willing to meet for an interview that afternoon.

    The executive summary? On the economy: “We have some big problems in this country.” He’s very concerned about debt, and about monetary, tax and regulatory policy. On foreign policy: “We’re weaker, much weaker” abroad than we were two decades ago.

    But despite it all, Mr. Shultz is confident that if we get the policies right again, America can regain its footing: “When Ronald Reagan took office, inflation was in the teens, the prime rate was in the 20s, and the economy was going nowhere. We still had the remnants of wage and price ontrols, particularly in oil and gas. And Jimmy Carter said we were in ‘malaise.’ It was a bad time. I’m convinced the economy can be turned around because I watched Ronald Reagan do it.”


  • JohnnyTwoDog

    Team Obama stop and think?
    Nope that ain’t happenin.



    colorado bank robber gets 1256 years in prison as a habitual offender. This guy is small time. Just think what the fraud and stealing by the financial system could and should get for a just sentence

  • LindaAnselmi

    Yup. And he is only one of hundreds, maybe even thousands. The whole financial system is full of corruption and fraud. That has been known for years. The question now is – will prosecutions follow? Or will everyone continue pretend to be willfully ignorant?

    • KenoshaMarge

      My vote is for ignorant, willful or otherwise. The pols are only interested in goaring each others ox. Corruption as a whole? Not so much.

  • http://twitter.com/AmarissaWS Amarissa WS
    • JohnnyTwoDog

      The only reason Obama is competitive at all is due to Republican Governor Rick Scott’s lunacy and unpopularity. Scott needs to hide for the next four months.

    • stodghie

      figures don’t lie and liars figure. i have doubts about most polls and pollsters. i find rasmussen to be the most reliable.

  • Hokma

    There may be enough there for force an investigation and potential indictment.

    But to the issue of Fraud the statement you have – “is intended to deceive ” – they must prove that there was malicious intent on the part of Geithner.

    Even if the prosecution cannot prove that, the fact that he dropped the ball is enough for Geithner to be forced to resign.

    • BronwynsHarbor

      Or will Obama bank on the ignorance of the general population?

      • Hokma

        That will only go so far before there are diminishing returns.
        If this becomes more of an issue, I would expect geithner to reisng quickly since he has not wanted to keep this job past one term anyway.

        • KenoshaMarge

          On the theory out of sight, out of mind?

          • Flop_Flipper

            Well, at least the “out of mind” part is without dispute.

            • KenoshaMarge

              Too bad the “out of jail” isn’t.

      • KenoshaMarge

        He’s been “banking” on that for his whole career. Sooner or later all but the dimmist wits will wake up and smell the bullshit.

      • FormerLiberal9

        H.L. Mencken once said, “nobody ever went broke underestimating the intelligence of the American public”.

        • KenoshaMarge

          I also think that Mencken might have known, and the dim Dems don’t, that if you treat the people as if they are stupid for too long that some of them will catch on. As the low opinion most now have of the media.
          It is no surprise that when people are kept in the dark and fed shit that they become mushrooms. But the problem with that is that not all people are content to remain mushrooms. Some want, need and desire a different diet.

          • Dbb3

            Never mind

  • KenoshaMarge

    Didn’t Obama have some business dealings with Tony Rezko and isn’t he behind bars now? Wasn’t Obama connected to Rod Blagojevich and isn’t he behind bars now? Wasn’t Bill Ayers one of Obama’s pals and shouldn’t he be behind bars? And wasn’t the very Reverend Wright Obama’s spiritual mentor for 20 years and shouldn’t he be in the loony bin? Well scratch the last one.

    • HoosierinDixie

      Marge you should check out the article on Breitbart about the top 10 felons, fugitives and shady characters in Obama’s life.

      • KenoshaMarge

        Thanks, I’ll do that. The ones mentioned were just off the top of my head.

    • jrterrier

      another good one, Marge.

      • KenoshaMarge

        There are so many good “toons” I have a hard time deciding which ones to share.

    • stodghie

      yes and rezko more that helped the cluess obamas to get that house that michelle wanted.
      having been in the same position that michelle was in chicago(member of a board) i looked closely at what occurred during that transaction. it was full of many red flags and those who called it for what it was were fired.

      • KenoshaMarge

        A country that had good investigative reporters instead of presstitutes would be informed about such things.

        • stodghie

          nice comment kenoshamarge



    DOJ not doing too good in Texas Voter ID case

    Federal lawyer not the sharpest in the shed

    • stodghie

      obama hates the red states and texas in particular. he has done his best to destroy anything of value in texas from nasa to drilling. hmmm isn’t it interesting that texas has had over 6% growth since the beginnibg of 2012.

  • arabella_trefoil

    Larry, you are my hero. Keep up reporting the stories the media ignores. I always thought the Geithner was a con artist. But they say that bad managers hire people who are exactly like themselves.
    A good manager hires people who don’t always agree with him/her.
    Now I want the skinny on Jarret and Axelrod.
    Now let me click on your links and order a bunch of stuff from your advertisers.
    You rule!

  • DianaLC

    O is in a “big glass house,” perhaps…..but if all your friends and cohorts eventually end up in jail or with seriously tarnished reputations, the “big glass house” is going to seem more a viewing room at the zoo.

    • arabella_trefoil

      I can just see all Obama’s staff battling one another to get to the computer to post their resumes on Monster.com.
      Before the shit hits the fan. Might be too late, though.

      • DianaLC

        Don’t you wish you were a prospective employer for one of those odiots? What fun you could have at their expense.

        • arabella_trefoil

          Yeah. I’m already planning my interview questions, my background check paperwork, my drug screening program, my reference check protocol, and my standardized tests.
          Fun is in short supply lately, so I may as well go for it.