23 November 2009

Dimon Touted as Replacement for Geithner

This news story is what is known in American parlance as a 'trial balloon.' It is a little leak to the press to assess the public and media reaction to a proposed change.

The game plan appears to be one of creating change you can believe in by replacing Bernanke and Geithner with Larry Summers, currently Obama's chief economic advisor and financial Rasputin, and Jamie Dimon, the CEO of J. P. Morgan bank. Lloyd Blankfein apparently is not available for the job, having found his vocation in doing God's work.

At least that is the plan that is being put 'on the table' by an influential group of financiers, or so we have been informed. Senator Chris Dodd, often the message bearer for Wall Street, mentioned last week that Mr. Bernanke's confirmation as Fed chief was not a certainty.

Jamie Dimon learned the business from Sandy Weil, one of the chief architects of the efforts of the Wall Street banks' campaign to overturn Glass-Steagall. He is also very smooth and politique, as opposed to Mr. Geithner who is in quite a bit of political trouble and not handling it with the gravitas mixed with detached joie de vivre expected in elite circles.

As Treasury Secretary perhaps Jamie can help out his old firm with their 130 million ounce naked short in silver. Oops, the US Treasury is out of silver too.

We are discounting rumours that President Obama is considering an executive pardon for Bernie Madoff, with the condition that he agree to serve as Treasury Secretary. "Take those T bills and put them where the mooncakes don't shine, Hu Jintao."

Dimon seen as successor to Geithner
By Ajay Kamalakaran in Bangalore
On 4:52 am EST, Monday November 23, 2009

(Reuters) - Several U.S. policy makers consider J P Morgan Chase & Company Chief Executive Jamie Dimon as a potential successor to U.S. Treasury Secretary Timothy Geithner, the New York Post said, citing sources.

Dimon "would love to serve his country," the paper quoted people familiar with his thinking as saying.

JPMorgan could not be immediately reached for comment by Reuters outside regular U.S. business hours.

Geithner endured a grilling last week before the U.S. Congress over his role in the rescue of American International Group Inc in 2008, when he was president of the New York Federal Reserve Bank.