The Wall Street Journal reports
that former Treasury Secretary Timothy Geithner met with President
Obama five minutes before he threatened S&P over downgrading the
United States credit rating. Gee, I what they talked about.
Last month we wrote about the threatening phone call from
then-Secretary of the Treasury Timothy Geithner to the head of the
parent company of Standard & Poor’s after S&P downgraded the
U.S. credit rating in 2011. Now we learn that Mr. Geithner placed the
call to McGraw Hill Chairman and CEO Harold McGraw III just five minutes
after leaving an Oval Office meeting with President Barack Obama.
This
detail, drawing on information contained in Mr. Geithner’s public
schedule, was included late yesterday in a filing by S&P in federal
court in the Central District of California. The Department of Justice
is suing S&P for $5 billion for alleged fraud in S&P’s ratings
on mortgage-backed securities during the housing boom. But DOJ is not
suing the other credit rating agencies that issued similarly awful
ratings. Since only Standard & Poor’s downgraded the U.S., S&P
says it is suffering from retaliation.
Read the whole thing, it gets even better. The government is trying to withhold evidence that S&P needs for its defense. I know, you’re shocked.
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