Barney Frank Asks Tim Geithner If Future Wall Street Bailouts Are Legal Under Dodd-Frank

Start watching at the 3:20 mark.  More from Geithner's Libor testimony on July 25.

Turbo says Dodd-Frank changed the law and prohibits any future taxpayer-funded bailouts of failed financial institutions, but somehow fails to mention that the Federal Reserve is not subject to the legislation and has no such gift-giving restrictions.

---

UPDATE - Pitchfork reminds us that Geithner is not telling the truth in this clip.

Here's what Geithner told Neil Barofsky in 2010:

"As Secretary Geithner told SIGTARP, while the Dodd-Frank Act gives the Government 'better tools,' and reduced the risk of failures, 'in the future we may have to do exceptional things again' if the shock to the financial system is sufficiently large.  Secretary Geithner's candor about the prospect of having to 'do exceptional things again' in such an unknowable future crisis is comendable.  At the same time, it underscores a TARP legacy, the moral hazard associated with the continued existence of institutions that remain too big to fail."

In other words, Geithner reserves the right to break the law ('do exceptional things') in order to save the big banks the next time they get into trouble.

From last week:

Bailout Barney Gets It Wrong Again

Comments

[Pitchfork]

For your joy and amusement, Joe Biden...

http://youtu.be/7c23RegP8lU

[DailyBail]

Nice. That did make me laugh.

[Pitchfork]

I'm not sure what G-man just told Barney Frank, but here's what he told SIGTARP in 2010:

"As Secretary Geithner told SIGTARP, while the Dodd-Frank Act gives the Government 'better tools,' and reduced the risk of failures, '[i]n the future we may have to do exceptional things again' if the shock to the financial system is sufficiently large."

As we wrote earlier:

"In other words,...Geithner reserves the right to break the law ("do exceptional things") in order to save the big banks the next time they get into trouble. Moreover, we have every expectation that the government will do exactly that. We still have Too Big To Fail, and according to Geithner, Too Big To Fail means there WILL be more bailouts the next time around."

http://dailybail.com/home/busted-obama-lied-about-no-more-wall-st-bailouts.html

[LiberatedCitizen]

Four years after Lehman, financial regulation is still being ignored

http://www.futuresmag.com/2012/08/27/larry-mcdonald-four-years-after-lehman-financial-r?ref=hp

[DailyBail]

Nice memory Pitch. I will work that into the story.