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Politics and Religion

I know many who post on this board are "loose" with the facts..yeah, understatement, I know, BUT
JohnMilton_Esq 99 reads
posted

The article HONDA linked to does not specify the amount of Geithner's credit line, while it is not $800M, Marikod just pulled the 5 to 10 million number right out of thin air.

As a businessman who has successfully grown several companies and back in the day invested heavily in the Market, I can say without a doubt that "margin" accounts such as the line our boy Timmy got with JPMorgan are MUCH more difficult to get these days because of the bank and credit regulations since the crash (think Dodd-Frank).  http://www.investopedia.com/ask/answers/13/dodd-frank-act-affect-me.asp

The article says Timmy had a net worth less then 4 million when he signed on at Treasury.  Even assuming that he had a couple of good years since then and even if as Marikod theorizes that Timmy was looking for a $10M line (I'd bet it's double that) and even IF that line was secured by the investment, no bank would grant a $10M margin account to a customer who had a $10-15M net worth.  NO WAY.  We have no information about the credit or worth of the other WP investors, but we do know Timmy is a lightweight to get this kind of juice without his "connections".  BTW contact ETrade and tell then you want a $10M line.   hahahaha    

HONDA has a very good point.  I think a "cozy" relationship with the CEO of JPMorgan "greased the skids" for Timmy in a way that I'll bet NONE of us here, including GaGambler, could get. This happens all the time; those who serve at high levels in the government and are in a position to offer favors as Timmy did for JPMorgan then get those favors returned to them when they head to the private sector.  I'm not a Bernie supporter but he does have a valid point about how this is crap.
Both the left and the right do it!

From the linked Bloomberg article:
"While at the New York Fed, Geithner recruited a number of finance executives to join the board of directors of the reserve bank, arguing it needed to better reflect the composition of the financial system, according to his memoir “Stress Test: Reflections on Financial Crises.” Among his recruits was Jamie Dimon, the CEO of JPMorgan, who served in that role from 2007 to 2012. The powers of the board do not extend to activities regarding supervision and regulation, according to the Fed bank’s bylaws.

Later, as Treasury secretary, Geithner oversaw the repayment of bailout funds that the nation’s banks received following the 2008 financial crisis. Dimon, whose bank had gotten $25 billion under the Troubled Asset Relief Program, called the program a “scarlet letter” and pushed for a quick repayment.

'Dear Timmy, we are happy to be able to pay back the $25 billion you lent us,” Dimon said in June 2009 at a conference, reading from a mock letter to Geithner. “We hope you enjoyed the experience as much as we did.' "
Posted By: marikod
I would guess.  No, JP Morgan is not loaning him $800 million, as you would know if you actually read your link.    
   
       This is a credit line for I’d guess between 5 to 10 million and will be secured by the stock he buys with each advance of credit. In other words, it is a margin loan just like I can get from E Trade or any other broker. We don't know the interest rate but until we learn otherwise you assume it is a market rate.  
   
          And you can get the same loan from JP Morgan, Honda, if you are equally creditworthy.  JP Morgan in fact extended the same credit line to other WP members who had nothing to do with the bailout.  
 
Related Link: HONDA's link to the Bloomberg article about TimmyG.

HONDA710 reads

Here's a prime example of why people are angry with Washington. Geithner was the Treasury Secretary who pushed for the bailouts of the big banks, including JPMorgan, in the wake of the financial crisis. He fought off anyone who wanted to discipline the banks or punish their executives with the argument that doing so would further destabilize the financial system. Of course our incumbent POTUS in chief swallowed his BS reasoning hook line and sinker. Tax dodger Timothy Geithner is now preparing to borrow $800 million from JP Morgan, a bank he helped to bail out during the financial crisis.

Former U.S. Treasury Secretary Timothy Geithner is preparing to borrow from JPMorgan Chase & Co. to help fund his new career in private equity.

Geithner, 54, secured a credit line with JP Morgan, one of the largest banks he oversaw during the financial crisis, to finance personal investments in funds started by his current employer, Warburg Pincus, according to a filing with the New York Department of State. He is borrowing money to invest in a $12 billion private equity fund that the firm raised in November, its first main fund since he joined almost two years ago, a person familiar with the situation said.

http://www.bloomberg.com/news/articles/2016-02-08/geithner-gets-jpmorgan-credit-line-to-invest-with-warburg-pincus

-- Modified on 2/10/2016 2:43:23 PM
Related Link: Cashing in

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JohnMilton_Esq103 reads

the anger is on both sides of the aisle.  While some righties and lefties act like blowhards and fools on this board, most of us who strive each day to build businesses and make a living are fed up with ALL of the BS and the "insiders" game.  Geithner has been a rat from the beginning, intent on lining his own pockets.

BTW, look who had a good take on Timmy G. back in the day!!  

http://www.theeroticreview.com/discussion_boards/viewmsg.asp?BoardID=39&SortBy=DateCreated%20desc&Search=Geithner&SearchType=1&DayFrom=2000&DayTo=0&ViewAll=1&MessageID=134158&frmSearch=1#134158

Posted By: HONDA
Here's a prime example of why people are angry with Washington. Geithner was the Treasury Secretary who pushed for the bailouts of the big banks, including JPMorgan, in the wake of the financial crisis. He fought off anyone who wanted to discipline the banks or punish their executives with the argument that doing so would further destabilize the financial system. Of course our incumbent POTUS in chief swallowed his BS reasoning hook line and sinker. Tax dodger Timothy Geithner is now preparing to borrow $800 million from JP Morgan, a bank he helped to bail out during the financial crisis.  
   
Former U.S. Treasury Secretary Timothy Geithner is preparing to borrow from JPMorgan Chase & Co. to help fund his new career in private equity.  
   
 Geithner, 54, secured a credit line with JP Morgan, one of the largest banks he oversaw during the financial crisis, to finance personal investments in funds started by his current employer, Warburg Pincus, according to a filing with the New York Department of State. He is borrowing money to invest in a $12 billion private equity fund that the firm raised in November, its first main fund since he joined almost two years ago, a person familiar with the situation said.
   
 http://www.bloomberg.com/news/articles/2016-02-08/geithner-gets-jpmorgan-credit-line-to-invest-with-warburg-pincus

-- Modified on 2/10/2016 2:43:23 PM

Related Link: He actually got it right LOL

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BigPapasan81 reads

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marikod101 reads

I would guess.  No, JP Morgan is not loaning him $800 million, as you would know if you actually read your link.  

      This is a credit line for I’d guess between 5 to 10 million and will be secured by the stock he buys with each advance of credit. In other words, it is a margin loan just like I can get from E Trade or any other broker. We don't know the interest rate but until we learn otherwise you assume it is a market rate.

         And you can get the same loan from JP Morgan, Honda, if you are equally creditworthy.  JP Morgan in fact extended the same credit line to other WP members who had nothing to do with the bailout

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HONDA106 reads

.....officials. Geithner obviously has done nothing illegal, but the appearance of Government officials being co-opted by Wall Street is disgusting to Main Streeters. Now, about that $800 million credit line, I doubt any of us "outsiders" would have access to those same credit lines.

 

-- Modified on 2/10/2016 9:30:54 PM

-- Modified on 2/10/2016 10:02:20 PM

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JohnMilton_Esq100 reads

The article HONDA linked to does not specify the amount of Geithner's credit line, while it is not $800M, Marikod just pulled the 5 to 10 million number right out of thin air.

As a businessman who has successfully grown several companies and back in the day invested heavily in the Market, I can say without a doubt that "margin" accounts such as the line our boy Timmy got with JPMorgan are MUCH more difficult to get these days because of the bank and credit regulations since the crash (think Dodd-Frank).  http://www.investopedia.com/ask/answers/13/dodd-frank-act-affect-me.asp

The article says Timmy had a net worth less then 4 million when he signed on at Treasury.  Even assuming that he had a couple of good years since then and even if as Marikod theorizes that Timmy was looking for a $10M line (I'd bet it's double that) and even IF that line was secured by the investment, no bank would grant a $10M margin account to a customer who had a $10-15M net worth.  NO WAY.  We have no information about the credit or worth of the other WP investors, but we do know Timmy is a lightweight to get this kind of juice without his "connections".  BTW contact ETrade and tell then you want a $10M line.   hahahaha    

HONDA has a very good point.  I think a "cozy" relationship with the CEO of JPMorgan "greased the skids" for Timmy in a way that I'll bet NONE of us here, including GaGambler, could get. This happens all the time; those who serve at high levels in the government and are in a position to offer favors as Timmy did for JPMorgan then get those favors returned to them when they head to the private sector.  I'm not a Bernie supporter but he does have a valid point about how this is crap.
Both the left and the right do it!

From the linked Bloomberg article:
"While at the New York Fed, Geithner recruited a number of finance executives to join the board of directors of the reserve bank, arguing it needed to better reflect the composition of the financial system, according to his memoir “Stress Test: Reflections on Financial Crises.” Among his recruits was Jamie Dimon, the CEO of JPMorgan, who served in that role from 2007 to 2012. The powers of the board do not extend to activities regarding supervision and regulation, according to the Fed bank’s bylaws.

Later, as Treasury secretary, Geithner oversaw the repayment of bailout funds that the nation’s banks received following the 2008 financial crisis. Dimon, whose bank had gotten $25 billion under the Troubled Asset Relief Program, called the program a “scarlet letter” and pushed for a quick repayment.

'Dear Timmy, we are happy to be able to pay back the $25 billion you lent us,” Dimon said in June 2009 at a conference, reading from a mock letter to Geithner. “We hope you enjoyed the experience as much as we did.' "

Posted By: marikod
I would guess.  No, JP Morgan is not loaning him $800 million, as you would know if you actually read your link.    
   
       This is a credit line for I’d guess between 5 to 10 million and will be secured by the stock he buys with each advance of credit. In other words, it is a margin loan just like I can get from E Trade or any other broker. We don't know the interest rate but until we learn otherwise you assume it is a market rate.  
   
          And you can get the same loan from JP Morgan, Honda, if you are equally creditworthy.  JP Morgan in fact extended the same credit line to other WP members who had nothing to do with the bailout.  
 
Related Link: HONDA's link to the Bloomberg article about TimmyG.

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marikod113 reads

The post expressly says that this  is a “guess.” The statement about the interest rate is expressly described as an “assumption” until we learn otherwise. So I am lost as to what “fact” you believe was loosely stated.  Given that the filing on which the internet stories are based did not specify the terms of the loan, all you can do is “guess” and “assume” the precise terms.

       The statement about Honda being able to get the “same loan” was qualified by “if you are equally creditworthy.”   Nor did I state that I could get the same  loan as Timmy – I said that this line of  credit is effectively a margin loan, just like I can get from any broker. I would have to be equally creditworthy to get the same amount.  

       You, Honda, and most of the internet authors are also guessing.   As you say, you “think” his cozy relationship with Jamie Dimon greased the skids. That is certainly possible. But it is no more a “fact” than my guess/assumption that he got a market deal that would have been extended to anyone of equal creditworthiness. Exhibit A in support of this assertion is that JPM also extended credit lines to WP members who were never in government. Maybe they did have a higher net worth as you point out- but I suspect they also got a higher credit line.

        I also would respectfully disagree with your flat assertion (NO WAY)  that Geithner could not get a 10M credit line even with a net worth of 10 to 15M. He is president of Warburg Pincus; his salary –once again “I guess” – is a million plus.  ABSOLUTELY – I would guess- he would meet bank underwriting requirements for a 10 M credit line with this net worth, a million plus salary, and security interests in each stock he buys. NW and salary  would also easily cover the 50% Regulation T margin maximum, if we assume it applies to a credit line. If anything, JPM would be OVERSECURED.  And for all we know, Warburg Pincus may have guaranteed the loan.  

 
       So you and Honda are free to “guess” that this was sweetheart payback loan simply bc he regulated JPM.  But, until we learn otherwise, I think my assumptions of a market loan are more in line with the disclosed facts

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JohnMilton_Esq80 reads

however you may want to consider that your analysis is missing a key ingredient in this situation and your assumption that this is a typical "market loan" is actually humorous (dict: ludicrous, laughable, jocose, jocular, comic, comical). Geithner used to REGULATE JPMorgan...sheesh

Paraphrasing HONDA's OP, these kind of deals "stink".  Yes they do!!  
 
http://www.vox.com/2016/2/8/10937934/geithner-loan-jp-morgan

"The Geithner Asset Relief Program"   LMAO
http://www.reuters.com/article/markets-saft-idUSL2N15N0WL

http://www.zerohedge.com/news/2016-02-08/timmy-geithner-gets-loan-jamie-dimon-pe-investment

http://fortune.com/2016/02/08/geithner-loans-jpmorgan/

http://www.usatoday.com/story/money/2016/02/09/ex-treasury-secretary-geithner-cashing-wall-street/80057762/#

Posted By: marikod
    The post expressly says that this  is a “guess.” The statement about the interest rate is expressly described as an “assumption” until we learn otherwise. So I am lost as to what “fact” you believe was loosely stated.  Given that the filing on which the internet stories are based did not specify the terms of the loan, all you can do is “guess” and “assume” the precise terms.  
   
        The statement about Honda being able to get the “same loan” was qualified by “if you are equally creditworthy.”   Nor did I state that I could get the same  loan as Timmy – I said that this line of  credit is effectively a margin loan, just like I can get from any broker. I would have to be equally creditworthy to get the same amount.  
   
        You, Honda, and most of the internet authors are also guessing.   As you say, you “think” his cozy relationship with Jamie Dimon greased the skids. That is certainly possible. But it is no more a “fact” than my guess/assumption that he got a market deal that would have been extended to anyone of equal creditworthiness. Exhibit A in support of this assertion is that JPM also extended credit lines to WP members who were never in government. Maybe they did have a higher net worth as you point out- but I suspect they also got a higher credit line.  
   
         I also would respectfully disagree with your flat assertion (NO WAY)  that Geithner could not get a 10M credit line even with a net worth of 10 to 15M. He is president of Warburg Pincus; his salary –once again “I guess” – is a million plus.  ABSOLUTELY – I would guess- he would meet bank underwriting requirements for a 10 M credit line with this net worth, a million plus salary, and security interests in each stock he buys. NW and salary  would also easily cover the 50% Regulation T margin maximum, if we assume it applies to a credit line. If anything, JPM would be OVERSECURED.  And for all we know, Warburg Pincus may have guaranteed the loan.      
   
        So you and Honda are free to “guess” that this was sweetheart payback loan simply bc he regulated JPM.  But, until we learn otherwise, I think my assumptions of a market loan are more in line with the disclosed facts.  
   
 
Related Link: http://www.usatoday.com/story/money/2016/02/09/ex-treasury-secretary-geithner-cashing-w...

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brooks570 reads

they fuck up everything they touch and then cash-in.

You can't be a Dem hero or expert unless you fuck something up, fuck someone over, or are consistently wrong.

How did Hillary get hundreds of millions when she was broke when she left the White-House?

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