It's a banker's pre$$, so if you go for this sort of thing....
"Tim Geithner gets JPMorgan credit line to invest with Warburg Pincus" by Miles Weiss and Kiel Porter Bloomberg News February 09, 2016
The whole $y$tem is so ince$tuous it makes you sick.
Former US treasury secretary Timothy Geithner is preparing to borrow from JPMorgan Chase to help fund his new career in private equity.
Geithner secured a credit line with JPMorgan, one of the largest banks he oversaw during the financial crisis, to finance personal investments in funds started by his current employer, Warburg Pincus, according to a filing with the New York Department of State. He is borrowing money to invest in a $12 billion private equity fund that the firm raised in November, its first main fund since he joined almost two years ago, a person familiar with the situation said.
Oh, the AB$OLUTE $TENCH!
Top private-equity managers are often expected to pony up many millions of dollars for their new funds, to show investors that their interests are aligned. Having worked for the government for most of his career, including as president of the Federal Reserve Bank of New York, Geithner entered that high-stakes world with the earnings history of a government employee, albeit a high-ranking one. By borrowing money, investors can also amplify — or leverage — the returns on their own capital.
Okay, that's not true. The Federal Reserve is a consortium of private banks like JPMorgan, not a government entity.
So what do you do when a pos pre$$ -- Bloomberg in this case -- tells flat-out untruths, huh?
The regulatory filing doesn’t disclose the size of the loan or the financial terms, such as the interest rate. Warburg Pincus hasn’t said how much Geithner agreed to commit to the new fund, and the filing doesn’t say whether he made use of the credit line to finance it.
Mary Zimmerman, a spokeswoman for New York-based Warburg Pincus, declined to comment or make Geithner available. Officials for JPMorgan declined to comment.
When raising a new fund, private-equity principals and their firms often commit their own money, in part to encourage outside investors to sign up.
Not anymore; that has happened for years, not since all the investment banks went public and companies offered IPOs.
Warburg Pincus executives including co-chief executive officer Joseph Landy, David Krieger, and Peter Kagan have arranged credit lines in the past that permit them to borrow against their existing stakes in the firm’s funds and entities. Landy and Kagan both have credit lines with JPMorgan, while Krieger arranged the financing agreements with UBS Bank USA, a US unit of Zurich-based UBS Group, according to separate filings made by the lenders with the state of New York.
Once described by CNN Money as ‘‘one of the least wealthy Treasury chiefs in recent history,’’ Geithner spent much of his life in public service, including stints at Treasury and the International Monetary Fund before taking the helm of the New York Fed in 2003.
The pre$$ calls $erving the looting bankers a "public $ervice."
Do you really need to read anything else?
Geithner had an estimated net worth of $3.2 million when he became Treasury secretary under President Obama in 2009. His predecessor, former Goldman Sachs chairman Henry Paulson, was worth about $292 million when he took the post in 2005, according to the Center for Responsive Politics in Washington, D.C.
He got to keep it all without paying any tax.
While at the New York Fed, Geithner recruited a number of finance executives to join the board of directors of the reserve bank, arguing it needed to better reflect the composition of the financial system, according to his memoir ‘‘Stress Test: Reflections on Financial Crises.’’
I don't think I'll be reading it.
Among his recruits was Jamie Dimon, the chief executive of JPMorgan, who served in that role from 2007 to 2012. The powers of the board do not extend to activities regarding supervision and regulation, according to the Fed bank’s bylaws.
Later, as Treasury secretary, Geithner oversaw the repayment of bailout funds that the nation’s banks received following the 2008 financial crisis. Dimon, whose bank had gotten $25 billion under the Troubled Asset Relief Program, called the program a ‘‘scarlet letter’’ and pushed for a quick repayment.
Another "public $ervice," I $uppo$e.
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