Posted on 02/10/2010 6:46:51 PM PST by opentalk
Heres the latest in the question of the New York Fed, Treasury Secretary Tim Geithner and the AIG bailout, as weve covered here at Big Government before (here and here). Last year, Iraq war vet Kevin Murray brought a lawsuit against the Treasury Department and Ben Bernanke (Murray vs. Geithner, et al) for its acquisition of AIG a scheme that made the US taxpayer the worlds largest provider of Shariah-compliant insurance products. Lawyers David Yerushalmi and The Thomas More Law Centers Robert Muise found, in the course of discovery, that that was just the tip of the iceberg.
Yerushalmi and Muise quickly realized that, in acquiring 77.9% of AIG, the New York Fed may have set up an illegal trust, with the knowledge that what they were to do was illegal. Tuesday, Murrays attorneys issued a subpoena for the Federal Reserve Bank of New York.
Heres the latest update from David Yerushalmi:
(Excerpt) Read more at biggovernment.com ...
Part of the Citi, AIG, Geithner, NY Fed investigation.
Nothing will happen. Holder will bury or dismiss it.
Be sure they subpoena Geithner being he was head of the NY Fed............
More on AIG Fed/Gietner.
This deposition will effectively allow us to learn the governments rationale (however lame) of the How and Why of the invalid and illegal trust used to gain control over AIG.
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Here are the questions from the subpoena:
1. The decision(s) to provide government financing to and otherwise bailout American International Group, Inc. (hereinafter AIG) and how the financing bailout was structured.
a. This matter specifically includes decisions regarding how and why the original financing provided by the government was funds provided by the FRBNY in the form of a credit facility;
b. This matter specifically includes the decision by the Fed to authorize the FRBNY to loan $85 billion to AIG pursuant to Section 13(3) of the Federal Reserve Act (12 U.S.C. § 343);
c. This matter specifically includes decisions requiring AIG to grant the FRBNY a pledge on assets and to transfer to the AIG Credit Facility Trust (hereinafter Trust) Series C preferred shares, which provided the Trust, inter alia, 79.9% (later reduced to 77.9%) of any dividend payments by AIG and of any aggregate voting rights of AIG common stock;
d. This matter specifically includes the decision to establish the Trust on behalf of the U.S. Treasury and to include section 1.03 in the AIG Credit Facility Trust Agreement granting the Board of Governors of the Federal Reserve System authority to terminate the Trust or amend its terms;
e. This matter specifically includes all subsequent decisions regarding the structuring of the government financing and bailout of AIG, including the decisions about when, how, and why to use (1) funds authorized by the Emergency Economic Stabilization Act of 2008, 12 U.S.C. § 5201 et seq. (hereinafter EESA); (2) funds not authorized by EESA, but otherwise under the control or authority of the U.S. Treasury and/or Treasury Department; (3) funds under the control or authority of the Federal Reserve Board; (4) funds under the control or authority of the FRBNY; and/or (5) any other funds under the control or authority of any other entity or agency subject to the direction and/or control of the U.S. Treasury and/or Treasury Department, the Federal Reserve Board, and/or the FRBNY.
f. This matter specifically includes the actual and permissible use(s) of funds from any government source (including the FRBNY) by AIG.
2. The information made available to the Office of the Special Inspector General for the Troubled Asset Relief Program (hereinafter SIGTARP) established by EESA, including information and communications to and from SIGTARP regarding the actual and permissible use(s) of funds from any government source (including the FRBNY) by AIG.
3. The facts, including communications, related to the FRBNYs knowledge of and/or information about Islamic law (i.e., Shariah), Shariah-compliant financial products, the Shariah obligation of jihad (i.e., kinetic war and/or terrorism), the Shariah obligation of dawa (i.e., the effort to both convert non-Muslims to adherence to Shariah and/or the effort to convert all political systems or political orders to Shariah-adherent political systems), and the use of Muslim charitable donations by individuals and/or Islamic and/or Shariah-compliant financial institutions to support jihad and/or dawa, including the use of donations by certain Muslim charitable organizations to support terrorist activity.
BTTT for tomorrow.
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?
THIS JUST IN: Rahm just announced he's going on a "family vacation" to Africa. Jest sayin'.
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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
During his time on the board, Freddie Mac was plagued with scandals involving campaign contributions and accounting irregularities. The Obama Administration rejected a request under the Freedom of Information Act to review Freddie Mac board minutes and correspondence during Emanuel's time as a director. (wikipedia)
Many Ameircans fear we are witnessing the emergence of a new government dictatorship...on American soil. History tells us that rampant corruption, fed by cronyism, are the nuts and bolts of dictatorships. Dictatorships are almost always governed by groups of friends and associates who appoint each other to government positions and use governmental power and authority to protect each other from accountability.
HERE'S WHAT OBAMA SAID
In re the FOIA memo, Obama said: The Government should not keep information confidential merely because public officials might be embarrassed by disclosure, because errors and failures might be revealed, or because of speculative or abstract fears. Obama added later that In responding to requests under the FOIA, executive branch agencies (agencies) should act promptly and in a spirit of cooperation, recognizing that such agencies are servants of the public.
HERE'S WHAT OBAMA DID
Freddie Mac records exempt from FOIA (Obama Admin Denies Request)
Sunlight Foundation | 03/26/2009 | Bill Allison
FR Posted 03/27/2009 by BuckeyeTexan
Journalists Bob Secter and Andrew Zajac of the Chicago Tribune report that, while researching what went at Freddie Mac during the period White House Chief of Staff Rahm Emanuel served on the government sponsored enterprises board of directors, they were unable to get minutes of board meetings and other information. The Obama administration rejected a Tribune request under the Freedom of Information Act to review Freddie Mac board minutes and correspondence during Emanuels time as a director.
The documents, obtained by Falcon for his investigation, were commercial information exempt from disclosure, according to a lawyer for the Federal Housing Finance Agency. Freddie Mac executives cooked the books, mismanaged the firm, and ultimately drove it into the ground, costing taxpayers billions of dollars. The commercial information exemption is reserved for private companiesFreddie Mac is by no means a private company anymore.
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BACKSTORY Rahm Emanuel was director when Freddie Mac board was tipped to fraudulent BONUS schemes. "On (Rahm) Emanuel's watch, the board was told by executives of a plan to use accounting tricks to mislead shareholders about outsize profits the government-chartered firm was then reaping from risky investments. The goal was to push earnings onto the books in future years, ensuring that Freddie Mac would appear profitable on paper for years to come and helping maximize annual bonuses for company brass.
The accounting scandal wasn't the only one that brewed during Emanuel's tenure. During his brief time on the board, the company hatched a plan to enhance its political muscle. That scheme, also reviewed by the board, led to a record $3.8 million fine from the Federal Election Commission for illegally using corporate resources to host fundraisers for politicians. Emanuel was the beneficiary of one of those parties after he left the board and ran in 2002 for a seat in Congress from the North Side of Chicago.
The board was throttled for its acquiescence to the accounting manipulation in a 2003 report by Armando Falcon Jr., head of a federal oversight agency for Freddie Mac. The scandal forced Freddie Mac to restate $5 billion in earnings and pay $585 million in fines and legal settlements.
It also foreshadowed even harder times at the firm. Many of those same risky investment practices tied to the accounting scandal eventually brought the firm to the brink of insolvency and led to its seizure last year by the Bush administration, which pledged to inject up to $100 billion in new capital to keep the firm afloat. The Obama administration has doubled that commitment."
Many Ameircans fear we are witnessing the emergence of a new government dictatorship...on American soil. History tells us that rampant corruption, fed by cronyism, are the nuts and bolts of dictatorships. Dictatorships are almost always governed by groups of friends and associates who appoint each other to government positions and use governmental power and authority to protect each other from accountability.
. . . . Article and #9.
[Thanks, Liz.]
I thought that Emanuel worked for Fannie Mae, where he made a huge fortune; but this article states that he also did work for GS.
The former CFO David Kellermann, may have had an issue with accounting irregularities at Freddie Mac when he died. It is strange there is no report of a final autopsy or what he was concerned about, past initial incident reported as suicide last April.
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