Is the bailout effort by the U.S. government--despite some tough talk on bonuses and the like--overly generous to the banking industry? That's the premise of an interesting New York Times article, the talk of the blogosphere right now, that suggests Treasury Secretary Tim Geithner has taken pains to align his actions with those of the industry and has forged "unusually close" relationships with top bankers. He was even given the chance to be CEO of Citigroup. One could easily paint him as an extensions of "The Club." But he begs to differ.  

He tells the Times that any attempt to get credit flowing again will inherently be of benefit to the industry. Still, some think he was too much of an insider to really make a difference. "For all his ties to Citi, Mr. Geithner repeatedly missed or overlooked signs that the bank--along with the rest of the financial system--was falling apart. When he did spot trouble, analysts say, his responses were too measured, or too late." Consider the CDS clearing nightmare. One could argue he was onto the right problem but was late and timid with his solution. The issue of bank capital adequacy has also stoked some criticism. For other reasons, Steve Forbes is calling for Geithner to resign. 

For more:
- here's the article

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