Geithner’s New York Fed Told AIG to Limit Swaps Disclosure

Business Week ^ | January 7, 2010 | Hugh Son

[Stayfree]

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.

[Stayfree]

Representative Darrell Issa obtained copies of e-mails revealing the corruption involved here.

[Leisler]

You schmucks don’t understand. Paper shuffling and gaming the system for huge paper profits is critical, critical to American’s strength. Besides, these are the best and the brightest, and although you wouldn’t understand, your children as future tax slaves will thank you.

/sarc

[Buckeye McFrog]

leak...leak...drip....drip....

Someone at the WH is setting stage to toss Turbo Timmy under the Obama Bus

[alice_in_bubbaland]

I don’t trust Geithner, there’s something really smarmy about him.

[WILLIALAL]

You don’t have to dig very deep into any financial story and you will find the name Goldman Sachs. What we witnessed in 2008 was fiscal robbery on the highest level, and all done willingly by big bank interests and the Fed at the expense of the US tax payer.
Too bad these stories can’t be put forth to the American public in a way that would be easy to understand. It would be interesting to see the political ramifications.

[Mobties]

Somehow, I don't think Treasury Secretary Geithner is ever going to see his signature on American currency.

That's a shame. I spent ten dollars at a local stationery store for a rubber stamp to print “Tax Cheat” in colored ink just below Geithner’s autograph. I wonder if I can deduct that as a business expense, Timmy would know, I'm sure.

[WashingtonSource]

Does Issa have someone on his staff investigating this?

[scooby321]

Too bad we don’t have anyone that will hold hearing or a Justice Department thats only goal is rights for Terrorist.