Posted on 03/22/2011 5:38:59 AM PDT by Chunga85
When two weeks ago it was disclosed that AIG is willing to pay $15.7 billion for the same toxic securities that two years ago caused AIG to sell 92% of itself to an involuntary taxpayer, and currently make up Maiden Lane II (which is marked on the Fed's books by BlackRock at $15.9 billion) we asked why this process is not open up to broader public auction. After all these are taxpayer assets and should receive an arms-length treatment in recouping best returns for the taxpayer. It seems that other bidders are now starting to appear. The FT reports: "Barclays is among a group of investors weighing a rival bid for a portfolio of mortgage-backed securities that has already drawn a $15.7bn offer from AIG, people familiar with the matter said. AIG, which wants to buy back the assets to reduce its obligations to the government while finding a higher-yielding use for its cash, went public with its bid earlier this month after the New York Fed did not respond to a preliminary offer made in December."
It appears that the Treasury had been hoping to quietly get the deal done where AIG buys the toxic mortgages at a preferential price so that Geithner can than proceed to sell off bits and pieces to bankers at a lowball IPO valuation where the deficit would once again be borne out by US taxpayers.
(Excerpt) Read more at zerohedge.com ...
Mortgage flipping on a grandiose scale..............
THE DAVE CLARK FIVE
“Bits And Pieces”
(Dave Clark / Mike Smith)
(I’m in pieces, bits and pieces)
Since you left me and you said goodbye
(I’m in pieces, bits and pieces)
All I do is sit and cry
(I’m in pieces, bits and pieces)
You went away and left me misery
(I’m in pieces, bits and pieces)
And that’s the way it’ll always be
(I’m in pieces, bits and pieces)
You said you loved me and you’d always be mine
(I’m in pieces, bits and pieces)
We’d be together till the end of time
(I’m in pieces, bits and pieces)
Now you say it was just a game
(I’m in pieces, bits and pieces)
But all you’re doin’ is leavin’ me pain
Time goes by and goes so slow (oh, yeah)
It just doesn’t seem true
Only just a few days ago
You said you’d love me, never make me blue
(I’m in pieces, bits and pieces)
Now you’ve gone and I’m all alone
(I’m in pieces, bits and pieces)
And you’re still way up there on your throne
(I’m in pieces, bits and pieces)
Nothin’ seems to ever go right
(I’m in pieces, bits and pieces)
‘Cause night is day and day is night
“it was disclosed that AIG is willing to pay $15.7 billion for the same toxic securities”
Really?! Where is AIG getting the $15.7B to buy them back? Maybe from the proceeds of the new book entitled the “Audacity of Bankruptcy”?
Something smells really bad.
Really?! Where is AIG getting the $15.7B to buy them back?
Certainly the first question I would ask, after I find out what serious money they hope to make on the deal and how.
IOW who is really getting screwed by this “deal”.
They are pledging debt obligating to the fed, for colleratel on new loans on the old loans, secured by the old loans secured by the prior old loans, and on and on and on. The bastards should still be forced into bankruptcy.
Fool me once, shame on you....you know the rest of this. Here is what is going on with AIG...very similar to the Indy Mac fiasco of last year:
http://www.youtube.com/user/fiercefreeleancer
Time to run all these guys out of town on a rail, and I don’t mean an unneeded high speed train either.
The bastards should still be forced into bankruptcy. org.whodat
Time to run all these guys out of town on a rail
I would slightly disagree, with bankruptcy, as an easy way out or allowing them to run or be driven out of town. How about coming clean, on the sweetheart deal and getting on a fast track of cleaning up the mess of toxic loans they have turned into a gold mine for them, and toxicity for the tax payer/home owner.
The only question would be who has responsibility for making banks toe the line. State banking oversight bureaucracies, or Federal, both or something else?
You may have misread my intent...I want to run out of town all those double dealing corrupt bureacrats and politicians who line the pockets of these crooks with taxpayer funds. This is beyond just a scandal, it is a strike at the very fabric of our country. Not only did the executives of the companies make a fortune on the front end with these toxic assets, they are now reaping another fortune allegedly cleaning up the mess all the while not suffering any consequence like going out of business. Too big to fail, not on my watch. Put them out of business and sue them under two theroies, one of unjust enrichment and the other for violation of their fiduciary responsibities. Kick them to the street, pull them out of their Hamptons summer homes or drop them off the balconies of their high rise NYC penthouse condos.
I want to run out of town all those double dealing corrupt bureacrats and politicians who line the pockets of these crooks with taxpayer funds.
Yes, I kinda got focused on the banks, when originally I was focused three years ago, on Barney and Chris and the cast of all those responsible for “affordable” housing.
Hopefully the trend for running “those” folks out of town, will continue in 2012.
Finally, someone explains the mechanics of this deal in a manner that can be understood by law-abiding taxpayers versus "The Alchemists of OPM".
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