Geithner’s statements that he didn’t have the power to close down the big banks is false. Moreover, Geithner and Paulson actually broke the law which requires the government to close down insolvent banks, no matter how big.
The Prompt Corrective Action Law (PCA) – 12 U.S.C. § 1831o – not only authorizes the government to seize insolvent banks, it mandates it.
As William K. Black – the senior regulator during the S&L crisis, and an Associate Professor of Economics and Law at the University of Missouri – told Bill Moyers in their recent interview:
Filed under: Economy, Government, Obama Administration, Past Presidents | Tagged: banks, Economy, Former President Bush, Government, Military, Obama, Obama Administration, Paulson, President Obama, Prompt Corrective Action Law (PCA), Timothy Geithner |