Posted on 01/26/2010 3:27:25 AM PST by mgist
AIG bail-out investigations launched
AIG had to be rescued in 2008 The US bail-out watchdog has announced it is launching two investigations into the government's rescue of insurer AIG.
Neil Barofsky, special investigator general for the US's Troubled Asset Relief Program (Tarp), questioned the government's role in the bail-out.
He is appearing before a House Committee looking into the AIG bail-out in 2008 on Wednesday.
AIG was initially bailed out for $85bn (£52bn), but its total rescue package has since amounted to more than $180bn.
"Issues have come to light that call into question whether the government has been, and is being, as transparent as possible with the American people," said Mr Barofsky in a prepared testimony.
"Documents have come to light that were not provided to the [watchdog] audit team during the course of the audit."
Transparency sought
The committee is investigating why the New York Federal Reserve, then headed by US Treasury Secretary Timothy Geithner, paid AIG business partners face value for assets so they would cancel contracts with the insurer.
(Excerpt) Read more at news.bbc.co.uk ...
They need to start calling it the New York City bail-out.
Time to put these traitors and thieves in jail...I’m sure the indictments are forthcoming.
former US Treasury Secretary, Timothy Geithner
I’m shocked, shocked to find out that AIG is insolvent.
"It also turns out that Geithners father, Peter F. Geithner, serves on the board with Kissinger of the National Committee on U.S.-China Relations. This is the group that rang the opening bell at the New York Stock Exchange, celebrating Chinese investments in the U.S. economy. In another interesting connection, it turns out that Peter F. Geithner was with the Ford Foundation and oversaw the work of Obamas mother, Ann Dunham, developing what are called microfinance programs in Indonesia."
Geithner failed to pay taxes for FIVE years and still he was selected to manage the entire US economy. The media silence was deafening here's why . . .
"Who is behind Geithner and why? And why does Obama want him? This is where the media fear to tread. As we have pointed out, major media companies such as GE (parent of NBC News) and the Washington Post Company have their own connections to Geithner through their own officials and board members. They have a conflict of interest that will never be reported by the news organizations themselves.
3/22/2009
It's all starting to make sense. It became very apparent there was something really deceptive about the entire campaign, election, and Obama's crazy left turn into no man's land. I never realized the extent of the corruption. Even McCain was on the Fat Cat's payroll! I still find it hard to grasp.
That’s damning “stuff” and major red flags! Not to mention inflaming!!!!!!
Can't wait to find out. Anyone think this story will get buried?
_______________________________
N.Y. Fed Investigated by Treasurys Barofsky Over AIG Bailout
January 26, 2010, 06:42 AM EST More From Businessweek Jan. 26 (Bloomberg) -- The Federal Reserve Bank of New York is being investigated by the chief watchdog for the U.S. financial bailout program about whether the regulator improperly limited disclosures about the bailout of American International Group Inc.
The probe by Neil Barofsky, the special inspector general charged with policing the Troubled Asset Relief Program, will also seek to determine if the New York Fed withheld documents during an audit completed in November, according to an excerpt of testimony provided to a House oversight panel.
We have initiated an investigation into whether there was any misconduct relating to the disclosure or lack thereof, Barofsky wrote in remarks for an Oversight and Government Reform Committee hearing scheduled for tomorrow.
The committee set the hearing to review the $182.3 billion bailout and requests by the New York Fed that the insurer limit disclosure in regulatory filings. Earlier this month, a committee member released e-mails indicating that the New York Fed asked AIG to withhold data from the public about payments made to bank trading partners.
The New York Fed has fully cooperated with the special inspector general for TARP and will continue to do so, Jack Gutt, a spokesman for the regulator, said in an e-mail.
Barofskys investigation widens an inquiry into what lawmakers have deemed a backdoor bailout of financial firms that were reimbursed for $62.1 billion in assets guaranteed by AIG. Treasury Secretary Timothy F. Geithner, who ran the New York Fed during AIGs September 2008 bailout, agreed to testify at the hearing. A Treasury spokeswoman has said that Geithner wasnt involved in decisions about AIG disclosures.
Barofsky said the oversight panel inquiry unearthed documents he didnt receive during an investigation he completed in November. The New York Feds outside counsel has told Barofsky the agency will cooperate with the probe.
Banks, including Goldman Sachs Group Inc. and Societe Generale SA, were reimbursed about 100 cents on the dollar for mortgage-linked securities that had declined in value. The New York Fed made limited efforts over two days in November 2008 to ask banks to accept less than full value on the bonds, according to Barofskys November report.
E-mails obtained by Representative Darrell Issa, a California Republican and ranking member of the oversight panel, show that New York Fed attorneys had discussions with AIG about asking permission from the Securities and Exchange Commission to withhold the names of the banks and their investments.
If anyone at the Fed thought that this investigation will stop after Wednesdays hearing, they are completely mistaken, Issa said yesterday in a statement. There has been a widespread effort by officials at the New York Fed to thwart transparency and we will continue to pursue this investigation for as long as it takes.
UBS run by Obama/Soros buddy Robert Wolf was a beneficiary of the AIG pass-through scam:
Gee its almost like they planned this.
Like Timmy The Wunderkinds 1099's from the IMF?
Funny how many oversights our overseers have
If I understand this correctly, the NY Fed. used an insolvent AIG as a washing machine to launder U.S. tax payer money in order to assure that banks like Goldman Sachs, Deutsche Bank, Societe Generale, Royal Bank of Scotland, etc. suffered no loss whatever for their purchases of bad loans.
Please correct me if I am wrong.
Wow USB untraceable swiss bank accounts, the missing link.
At this point the level of corruption is so entrenched, there is no extermination, only rebuilding.
Still cheaper than GM... and AIG hasn’t yet declared bankruptcy, so we still have a chance of getting our money back.
But hey, GM’s the good guy, right? Not like them d@mn, dirty bankers.
???
But but but ... didn’t Golden Sacks get huge bonuses without comment from Barry?
Doesnt it figure that Juan was top RINO AIG whore?
And he was a cheap whore at that.
later
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