Posted on 01/07/2010 7:46:12 AM PST by truthandlife
The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer's payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.
AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.
The New York Fed took over negotiations between AIG and the banks in November 2008 as losses on the swaps, which were contracts tied to subprime home loans, threatened to swamp the insurer weeks after its taxpayer-funded rescue. The regulator decided that Goldman Sachs and more than a dozen banks would be fully repaid for $62.1 billion of the swaps, prompting lawmakers to call the AIG rescue a “backdoor bailout” of financial firms.
“It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Issa, a California Republican. Taxpayers “deserve full and complete disclosure under our nation's securities laws, not the withholding of politically inconvenient information.” President Barack Obama selected Geithner as Treasury secretary, a post he took last year.
(Excerpt) Read more at chron.com ...
FIRE THE SON OF A B****
The list, ping
Not that it matters these days, but this seems to border on criminal activity.
The most corrupt administration we have ever seen. It is truly incredible but not surprising.
Why is Tiny Tim still drawing a paycheck ?
Sorta longing for a nice simple scandal like Watergate ... it seems so innocent in retrospect.
There are too many reprobates, crooks, tax cheats, womanizers and terror sympathizers in the O admin to allow us to concentrate.
Leave it to a TAX CHEAT ...
Leave it to a TAX CHEAT ...
Wonder what Blumenthal has to say.
I am more than ever convinced that the Stimulus Funds ae payoffs to Obama and his cronies. I’m sure a sizable contribution was made to Ben Nelson’s numbered account to get his vote for healthcare, etc.
when one is looting the treasury, it is helpful to keep the details murky as long as possible.
I am watching Fox Business News and heard the announcement this morning. !!!!!!
***Not that it matters these days, but this seems to border on criminal activity.***
Silly you, only Republicans engage in criminal activity.
What we call truth the democrats call it politically inconvenient information.
"AIG’s first rescue was an $85 billion credit line from the New York Fed in September 2008. The bailout was expanded three times and is valued at $182.3 billion. That includes a $60 billion Fed credit line, an investment of as much as $69.8 billion from the Treasury and up to $52.5 billion for Maiden Lane facilities to buy mortgage-linked assets owned or backed by the company."
This is all about helping his buddies at Goldman Sachs.
Don’t you people understand?
Geitner is the only person who can deal with this mess. So what if he cheats on his taxes? Big Whoop! We must confirm him. If you vote against his confirmation you are a racist and corporate hack.
You will shut up or else.
Thank you for your time.
Carry on.
Sincerely,
B. Hussein Obama
No kidding. Anyone who followed the story closely knows this.
AIG was the designated patsy. They were demonized. Their bonuses were cursed. They had ACORN sent after their executives to mount protests.
Meantime, all they were really doing was to pass the money THROUGH AIG to Goldman Sachs, J. P. Morgan, and a couple of other banks who were their political donors. Goldman Sachs made huge profits, not only on all the money passed through, but also on shorting AIG.
What they presumably told AIG was, “You play the patsy, or you’re going bankrupt and will spend the rest of your lives in jail.” So AIG rolled over and agreed to be demonized.
This wasn’t just Geithner. Obama was in it well before he became President. He was the second biggest recipient of donations from Goldman Sachs, after Chris Dodd.
This administration is criminal. This conduct makes Enron look like child’s play.
If the GOP does not aggressively investigate this they are not worthy of support. They owe it to my children to fully account for the debt they pass to them.
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