Kneel: Chinese ask Geithner to approve buying shares in Morgan Stanley, transaction approved next day

Geithner caves to the Chinese government when they asked directly that he approve a transaction when they wanted to invest in Morgan Stanley.  It was getting held up by red tape, so the Chinese government came knocking on his door asking for a favor.  At this point we have no indication that there was any quid pro quo or other impropriety, But the much we do know, the day after they made the request, Geithner et al approved of the transaction. 

How many of us can get that type of service?  Via CNBC:

The cables, obtained by WikiLeaks, show that escalating Chinese pressure prompted a procession of soothing visits from the U.S. Treasury Department.

In one striking instance, a top Chinese money manager directly asked U.S. Treasury Secretary Timothy Geithner for a favor.

In June, 2009, the head of China's powerful sovereign wealth fund met with Geithner and requested that he lean on regulators at the U.S. Federal Reserve to speed up the approval of its $1.2 billion investment in Morgan Stanley [MS Loading... () ], according to the cables, which were provided to Reuters by a third party.

Although the cables do not mention if Geithner took any action, China's deal to buy Morgan Stanley shares was announced the very next day.


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