Posted on 03/04/2009 9:13:25 AM PST by FromLori
http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4934220/US-banks-may-need-more-bail-outs-says-Ben-Bernanke.html
(Excerpt) Read more at telegraph.co.uk ...
NWO in the house.
at the time of his appointment,
bernanke was said to be chosen because his academic specialty was
the great depression.
it is in creating a Great Depression.
Like we didn’t see this coming............
related....on wire now....AIG and Greenberg:
Judge Rejects Bid To Dismiss AIG Claim In SICO Case
Last update: 3/4/2009 12:02:24 PM
By Chad Bray
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)—A federal judge has rejected a bid by Starr International Co., or SICO, to dismiss one of three remaining counterclaims brought by American International Group (AIG) in a lawsuit over control of SICO’s ownership stake in the insurer.
In an order late Tuesday, U.S. District Judge Jed S. Rakoff in Manhattan rejected a renewed summary judgment motion to dismiss a conversion claim brought by AIG. Rakoff was recently assigned to the case.
Last June, U.S. District Judge Barbara Jones in Manhattan, who previously heard the case, threw out four of seven counterclaims brought by AIG, including claims of breach of contract and unjust enrichment. She allowed three counterclaims, including the conversion claim, to proceed.
“Judge Jones’ decision thus implicitly rejected the argument that SICO makes now that AIG had no legally cognizable claim to the shares,” said Rakoff, the district judge.
“Nevertheless, the court has independently reviewed the parties’ submissions, which essentially provide full briefing on the legal issue in question, and finds that the position taken by SICO is erroneous.”
SICO is controlled by former AIG Chairman Maurice R. “Hank” Greenberg.
AIG has alleged that SICO, when it and AIG were both controlled by Greenberg, used a “great portion” of its AIG shares to fund a deferred compensation plan for select AIG executives, but that arrangement changed shortly after Greenberg retired from AIG in 2005 amid probes into the insurer’s accounting.
The case is expected to go to trial in June.
In a statement on Wednesday, AIG said, “We are pleased by the court’s ruling that AIG is entitled to proceed to trial on its claim that SICO, at the direction of Hank Greenberg, unlawfully converted the AIG shares in dispute. We look forward to a full public hearing on the facts and theories of this case.”
SICO, in a statement on Wednesday, said it’s confident it will prevail at trial. ‘AIG is prosecuting claims against Starr International for only one purpose: To add hundreds of millions of dollars to a bonus pool available to AIG’s top 700 executives,” SICO said.
In its statement, SICO said AIG “implausibly” asserts that in 1970 it established a trust of shares worth more than $100 million at the time, but the trust was never put in writing and never included on its balance sheet. SICO said AIG claims it never asked the company for a confirmation of the trust and only made a claim relating to the trust after SICO sued the insurer seeking the return of artwork in 2005.
On Friday, Greenberg, filed a securities-fraud lawsuit against the AIG, alleging the company and several former executives who led the company after his departure made misrepresentations about billions of dollars in losses in the insurer’s portfolio of credit default swaps.
The company has accepted $170 billion in U.S. government aid, and government officials have said they may have to pump more money into the insurer if the economy continues to worsen. On Monday, it reported a $61.7 billion fourth-quarter loss.
On Tuesday, AIG said Greenberg was directly responsible for the creation of the company’s financial-products unit that led to its near collapse and called the lawsuit “utterly without merit.”
Okay, which other banks do I need to put on my boycott list? I will no longer do business with TARP banks, not even accept checks on those accounts. People who bank there can take out cash if they want my services. I hope and pray that enough Freepers and other conservatives will join me that banks will be afraid to steal taxpayer dollars in the next bailout.
Like shoveling sand into the tide.
No stupid. The banks need to go chapter 11 and clean up their own sh@@. Their greed put them in this place. And don’t blame it on they were forced to take the bogus mortgages. BS. Bernanke will bankrupt America.
When is this idiot just going to start dropping money from helicopters like he said he’d do early on. It would probably work better than pouring loans down the partially nationalized blackholes that most banks have become.
Look for the market to start dropping as this gets further into the news cycle.
Market was up 150 this morning. Now only up 100 .... looks like it’s percolating.
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