Wednesday, January 14, 2009

Did Tim Geithner's Fed miss the Citigroup mess?

With all the attention paid to the SEC and its screw-ups, it's easy to forget that the Federal Reserve, and the New York Fed (and its president Tim Geithner) in particular, were responsible for overseeing Citigroup.

An excellent Propublica story runs down the history of the Fed's oversight and Citi's troubles, apparently getting most of its story from prior press reports. The Fed, similar to Finra's secret brokerage exam reports, is completely opaque. Can't risk scaring the public, after all.