Remember poor Martha Stewart? The old gal went to prison for trading on inside information that might have ooched her up a few thousand here or there. Well while the rest of the world was focused on the distraction of uber liar Lance Armstrong, the underworld press types are focused on a far bigger scandal (and one that of course is going totally unreported by the mainstream media.)
The scandal is the disclosure that Timothy Geithner is accused of leaking sensitive federal reserve policy information to his banker buddies. If true, the information that he leaked would have allowed them to profit monstrously (or at least cover their otherwise lost positions) while at the same time those small fry traders who were not aware would get killed.
And the data suggests that this is exactly what happened. But again, you will find no reporting of this event. Not a word will be written in the mainstream press. They’re too busy with Honey Boo Boo and useless scandals like Lance Armstrong. Speaking of Armstrong, what do you bet the feds will find a way to intervene in the cases against him….the same feds who claim no resources or ability to go after Geithner and the rest of the banker class?
From ZeroHedge:
Yesterday we broke the news of what is prima facie evidence, sourced by none other than the Federal Reserve’s official August 16, 2007 conference call transcript, that then-NY Fed president and FOMC Vice Chairman Tim Geithner leaked material, non-public, and very much market moving information (the “Geithner Leak”) to at least one banker, in this case then Bank of America CEO Ken Leiws, in advance of a formal Fed announcement – an act explicitly prohibited by virtually every capital markets law (and reading thereof). It was refreshing to see that at least several other mainstream outlets, including Reuters, The Hill and the NYT, carried this story which is far more significant than Season 1 of Lance Armstrong’s produced theatrical confession and rating bonanza. It is notable that Richmond Fed’s Jeff Lacker who made the inadvertent (or very much advertent) disclosure has not backed down from his prior allegation and told the NYT yesterday that “My understanding was that President Geithner had discussed a reduction in the discount rate with these banks in connection with these initiatives.” What, however, the mainstream media has not touched upon, yet, is just how profound the market response to the Geithner Leak was, and by implication, how much money those who were aware of what the Fed was about to do made. Perhaps, it should because as we show below, the implications were staggering. But perhaps what is even more relevant, is why the Fed’s previously disclosed details of Mr. Geithner’s daily actions at the time, have exactly no mention of any of this.
ZEROHEDGE
