Maiden Lane III

Treasury chief Tim Geithner will probably not have to worry about still having his Westchester, NY house sitting empty all this time.

Geithner will probably need a home in the New York area once he is bounced from Washington over his latest problem.

It appears from the little paperwork that could be released on the creation of Maiden Lane II and Maiden Lane III by the New York Fed while Geithner was the president, that he authorized the backdoor bank bailout of Wall Street through AIG.

AIG paid 100% on all these CDOs regardless of the traunche or value. This was done at the insistence of the NY Fed and Geithner.

Now the White House has come out and publicly backed Geithner — for the fifth time since hes was designated. This has to be getting old for Rahm Emanuel and Larry Summers.

Geithner does not have the pedigree to keep him in the job. I believe he was appointed to Treasury because of this bailout.

Yes his grandfather was an adviser to Eisenhowser. Yes he worked for the IMF and the World Bank. Yes he worked for Henry Kissinger.

But no he has no ties to the bankers on The Street. He also has no political power base in Washington. He was used as a pawn and will pay the price by President’s Day.

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