Posted on 02/03/2010 3:24:38 PM PST by FromLori
Biggovernment has presented an explosive story related to AIG and The NY Fed in which the claim is made that the trust agreement that established AIG's "grab" by The NY Fed was in fact outright unlawful:
This afternoon on Secure Freedom Radio we announced a breaking news story concerning the Administrations ongoing cover-up of AIG financial wrong-doing. In an interview with David Yerushalmi, senior litigator on the Murray v. Geithner et al lawsuit, we expose possible fraud, money-laundering and criminal activity.
Money laundering?!
I looked at the source document folks - and while most of it looks ok, there's one little line in the trust agreement that might be the problem referred to - specifically, here:
Section 1.03. Trust is Irrevocable. This Trust Agreement and the Trust shall be irrevocable and, except as provided in Section 5.01 hereof, unamendable except that the Board of Governors may terminate or amend its authorization pursuant to Section 13(3) of the Federal Reserve Act, thereby revoking or amending the Trust in accordance with Federal law, provided, however, that a Trustees rights to resign as a trustee hereunder and to compensation and indemnification with respect to acts or omissions occurring prior to any such revocation or amendment may not be modified without the written consent of that Trustee.
A trust of this sort, to be lawful, has to be irrevocable - you can't reserve the ability to modify it later. The NY Fed knew they didn't have the authority to take equity - thus, these "trust" agreements.
I'll note for the peanut gallery that I'm not an attorney, but I do have a reasonable understanding of the requirements for an irrevocable trust of this general sort to be valid. A phone call with the plaintiff's attorney, David Yerushalmi this morning confirmed that this indeed was the primary problem. Mr. Yerushalmi went on to assert that this establishes a prima-facie violation of the money laundering statute - an extremely serious allegation as that law, if violated, carries very heavy criminal penalties.
There is also apparently a second issue in that the beneficiary is named as The US Treasury, which is, effectively, a bank account and not a "person or entity." That's a potential problem too although I can see the counter-claim being made that "The Treasury" is in fact The institution of The Treasury, not the account called "The US Treasury."
This is an explosive allegation - if the trust is defective then it is as if it never existed, and the entirety of the AIG bailout and everything related to it may be criminally unlawful. In addition the shareholders of AIG may have effectively had their equity interest improperly stripped!
A call to AIG's corporate offices for comment was redirected to a media contact person by email (they apparently don't take phone calls) and an inquiry to that office was not immediately returned.
Stay tuned -this has the potential to get rather interesting, as the admissions related to this agreement, if I read the transcript accurately, were revealed in a deposition - that is, with the folks doing the talking under oath.
Lets Get Ready To RUMMMBALLLLLLLLLLLLLLLLLLL
Arrest Bernanke, Paulson, Greenspan, Volcker, Geithner, and throw them in jail cell with Madoff. then fill the cell with
zyklon b
Arrest Bernanke, Paulson, Greenspan, Volcker, Geithner, and throw them in jail cell with Madoff. then fill the cell with
zyklon b
Whats new? Why did JFK get whacked?
If this is true.................
Perfect example but I am so sorry to hear that.
It already is ugly. But remember these that rearranged their deck chairs got this done under a Republican president and these players will never ever accept responsibility for their actions.
Is it a 'conspiracy' yet?
Is there anything that anyone can do about it now?
Reminder for tomorrow:
Buy stock in popcorn.
Sure, I think it’s a monstrous example of how liberals universally achieve the opposite of their claims.
Liberals claim to use the power of government for the purpose of restraining the human inclination for corruption in capital markets.
What they have done is to open the flood gates of greed.
That is so true the really sickening part is the liberals seem to believe BO and his minions are waging war on their banker pals. They really haven’t a clue.
Dem. senators spent weekend with bank, energy, tobacco lobbyists
Reports: AIG Plans $100 Million Bonus Payment
Si! From El Jefe Boosh to Mustapha bin Obama.
well well...We the People certainly have our work cut out for us now...
Goldman Sachs Will Be Sitting Pretty With Emanuel in the Obama White House
By: Timothy P. Carney, Examiner Columnist, Nov 21, 2008
Goldman Sachs always has clout in Washington, as evidenced by the firms alumni serving as Treasury secretaries under both Presidents Bush and Clinton. Today, in these tumultuous times of bailouts and meltdowns when the investment banking leviathan needs Washington more than ever before, Goldman can leverage its most valuable asset yetincoming White House chief of staff Rahm Emanuel. Goldman Sachs is the giant of Wall Street, and more than any other investment bank, Goldman is surviving the current financial storm.
Traditionally a Democratic booster, and one of Barack Obamas top sources of funds in this past election, Goldman has always had some particularly strong allies within government. Emanuel is one such ally. An interesting early chapter in the Goldman-Emanuel relationship took place in the setting of Bill Clintons campaign for the White House in 1992. Clinton hired Emanuel as his chief fundraiser.
At the same time, however, Emanuel was on the payroll of Goldman Sachs, receiving $3,000 per month from the firm to introduce us to people, in the words of one Goldman partner at the time. This is certainly a noteworthy relationship, but its one that has almost entirely escaped scrutiny. (snip)
In his four terms in Congress, Emanuel has raised $74,750 from Goldman, making the firm his number four source of funds. Goldman has helped Emanuel. How has Emanuel helped Goldman? The most obvious answer, as mentioned in this column two weeks ago, is in Emanuels lead role in shepherding the $700 billion bailoutfirst proposed by former a Goldman CEO, Bush Treasury Secretary Henry Paulsonthrough the skeptical House.
Of course, back in the Clinton days, Goldman benefited from NAFTA and the bailout of the Mexican currency, with Emanuel pushing NAFTA through Congress, and Rubin hammering out the peso bailout. Did Goldman improperly funnel money to the Clinton campaign by subsidizing Emanuels salary in 1992? Did Goldmans help to Clinton spur the Democratic president to push NAFTA and the Mexican bailout?
The answers to these questions are opaque, and with Emanuel burrowed deep within the Obama White House, the continued relationship between Goldman Sachs and Obamas right hand man wont be easy to follow.
Watch which regulations of Wall Street Obama fights for. Watch where the bailout money goes. And dont be surprised Goldman soon sitting pretty once again.
http://www.washingtonexaminer.com/opinion/columns/TimothyCarney/
THINGS WE DO NOT KNOW ABOUT RAHM Did Wall Street Rahm reveal all of his ties to financial institutions involved in Obama's trillion dollar federal bailout of financials.......like Goldman Sachs, for instance?
FOR YOUR REFERENCE----CIRCA Sept 15, 2009 A SHOCKING DISPLAY OF OBAMA'S THIRST FOR POWER FOX News' Judge Napolitano notes: if implemented, the unconstitutional proposals Obama urged in his speech to Wall Street will amount to a final coup détat by banksters, their technocrats and enforcers, at the Federal Reserve (*the privately-held bankster cartel that masquerades as a government agency). Obama's "reforms" would install a dictatorial regulatory power controlled by international bankers over the entire US economy down to the local grocer and hot dog vendor on the corner. It will control our lives down to the smallest detail. It will require us to ask permission for the most mundane and routine of financial transactions. IT MUST BE BE RESISTED AT ALL COSTS. VIDEO LINK AVAILABLE Judge Andrew Napolitano On Obama/Bankster Takeover
FOR YOUR REFERENCE-----Goldman Sachs-AIG: It's Likely Worse Than You Think
Real Clear Markets | 1/13/10 | James Keller
FR Posted January 13, 2010 by Nachum
The Goldman Sachs-AIG scandal may be worse than we think. Former New York Fed President and current Treasury Secretary Timothy Geithner is being castigated for paying off AIG's counterparties - Goldman foremost among them - 100 cents on the dollar and then keeping these payments secret. But it seems likely that Goldman actually got much more than 100%. What is worse, Goldman may have received this windfall by trading on information that was deliberately withheld from the public. (Excerpt) Read more at realclearmarkets.com ...
Whew - almost TMI this morning!
Truly, the Damnocrats are THE largest criminal organization in the nation - and, I think, in the world!
Is it a ‘conspiracy’ yet?
Yes and it always has been. They called Copernicus and Galileo heretics in their day. We’re in good company when the brainwashed call us “kooks” while the irrefutable evidence piles up behind us.
“I think its quite likely that bribery on a major scale played a role in the bailouts of Goldman Sachs and AIG.”
That sir, is the understatement of the century.
“Later, when it became clear information would be disclosed, New York Fed legal group staffer James Bergin e-mailed colleagues saying: I have to think this train is probably going to leave the station soon and we need to focus our efforts on explaining the story as best we can. There were too many people involved in the deals — too many counterparties, too many lawyers and advisors, too many people from AIG — to keep a determined Congress from the information.
Think of the enormity of that statement. A staffer at a body with little public accountability and that exists to serve bankers is lamenting the inability to keep Congress in the dark.
This belies the culture of secrecy obviously pervasive within the New York Fed. Committee Chairman Edolphus Towns noted during the hearing that the bank initially refused to disclose even the names of other banks that benefited from its actions, arguing this information would somehow harm AIG. “
There you are.
Good catch, Onyx!
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