Geithner Says He May Oust Executives at Banks Needing `Exceptional’ Aid - hmmm, I don’t trust this soundbite that he made on Face the Nation, note how Geithner makes this prospective, something that would only be done with banks that get in trouble in the future:

“If in the future, banks need exceptional assistance in order to get through this, then we will make sure that assistance comes… Where that requires a change in management and the board, then we will do that.”

It could be the administration is floating another trial balloon, to see how that goes over publicly and within the bankster community. Geithner said the Obama administration has no intention of letting banks get around the rules. “Our obligation is to apply the laws that Congress just passed,” he said. Hmmm, Congress last eliminated the FV rule so the banksters could go on giving fictitously inflated marks to their assets. This allows the banksters to claim they don’t need assistance. Likewise for Geithner’s PPIP program, it is intended to have taxpayers pay insanely over-inflated marks so that the banksters don’t need exceptional assistance. Geithner’s soundbites sound good and are made to look as if they are really doing something, when in fact, the laws and programs are intended to allow banksters to skirt the need for exceptional assistance.

“We will do what’s necessary to make sure our banking system emerges out of this stronger,” he said. He declined to say whether Treasury will force banks to sell assets.

Until we see the administration shit-can Pandit and Lewis, and until we see banks being forced to sell their assets at market value, there will be no price discovery with regard to these toxic non-performing assets and therefore there will be no clearing of the clogged plumbing in the financial system.

Summers Earned Millions in Salary From D.E. Shaw and Bank Speech Payments

- Apparently Larry was a managing director at this firm.