Thursday, April 23, 2009

Geithnerism, Part Two

Yesterday we introduced the term "Geithnerism."

Today we'll have to expand the definition, or change it.

The Treasury Department has not developed a strategy to manage the billions of dollars of investments it holds under the Troubled Asset Relief Program (TARP), according to a startling new report from TARP’s inspector general.

Treasury was told by SIGTARP in January to develop such a plan

That's not all.

Another revelation from the SIGTARP report: The Treasury Department has almost no oversight over a joint Treasury-Federal Reserve lending program known as TALF, or the Term Asset-backed securities Lending Facility.

“Treasury did not receive sufficient oversight-enabling provisions in the (TALF) agreements,” the report says. “(I)t has no oversight or access rights over any of the borrowers, including borrowers who default on their loans.

Treasury does not even have the right to learn the identity of such borrowers,” the report noted. “Under its current agreement, Treasury does not have access to the identity, or any oversight authority over, the borrowers from whom, in effect, it will be buying surrendered ABS (asset-backed securities).”

We thought that the term "Geithnerism" could be a noun meaning 'true one day, not true the next.' Well, that definition itself is a Geithnerism; it's not adequate.

Today's definition:

Geithnerism: adj., signifying total incompetence or cluelessness; usually applied to statements or work-products which are meaningless or so incomplete as to be useless. Also see: Geithnerite, Geithneritical

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