Posted 4 years ago on Feb. 9, 2016, 8:37 a.m. EST by factsrfun
from Phoenix, AZ
This content is user submitted and not an official statement
Updated by Matthew Yglesias on February 8, 2016,
"he was an undersecretary of Treasury in the Clinton administration. Today, regulatory filings reveal that he's obtained a personal line of credit from JPMorgan. He plans to use the money to invest in a $12 billion private equity fund that Warburg Pincus, where he works now, is raising."
This Geithner story is a pretty perfect example of something Bernie Sanders has been complaining about on the campaign trail
"Geithner's loan shows how that does and doesn't work out. There's no evidence to believe Geithner did any special favors for Warburg Pincus in any of his government jobs, and little reason to believe that JPMorgan had anything other than a basic business interest in advancing this line of credit. From JPMorgan's perspective, it's a no-brainer move to make, and if one bank hadn't been willing to do it, another bank would have. There's no quid pro quo here, and by conventional standards there's no scandal.
But even if there's nothing technically wrong with this setup, it is exactly why Sanders's message is resonating. By conventional standards it's normal for the Democratic Party to appoint someone like Geithner: a Treasury secretary who is also the kind of person who could comfortably be a partner at a private equity firm and get a line of credit from a major global bank to paper over the fact that he's not as rich as those colleagues. It's not a scandal; it's just how the game is played."