The Oligarchs are those members of the politically powerful speculator class who can count on being bailed out by the Treasury, because of their political connections. Large investors and high-ranking officers in firms such as Citi, Bank of America, and Goldman Sachs are Oligarchs. Officials like former Treasury Secretary Henry Paulson and current Treasury Secretary Tim Geithner support them.
How else are the oligarchs going to afford their second mansions?
Why is Geitner doig this? One commentator on this blog claimed that the Oligarchs should be an unofficial branch of government, as it was only because of the Oligarchs that we won the Revolution against Britain (!). The pro-Geithner crowd can barely be bothered to come up with a coherent argument, excecpt to cite bizarre historical theories and assert insider information (If you only knew…).
I think it is simpler to safe this is a case of regulatory capture.
Meanwhile, one Fed chief wants to shut the Oligarchs down. I agree.