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

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

www.bloomberg.com

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. 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.

(visit the link for the full news article)

This is huge news! This proves what was suspected all along. The AIG rescue was a sham. It was nothing but a back door bailout of the banks. Geithner wanted to make sure his cronies at Goldman Sachs and other banks got their money. This is a crime against the American people. People should be outraged. Somehow I doubt this story will get much attention from the MSM.

The regulator decided that Goldman Sachs and more than a dozen banks would be fully repaid for $62.1 billion of the swaps, prompting lawmakers to call the AIG rescue a “backdoor bailout” of financial firms.

Exactly what is was, a backdoor bailout of the banks that took the money but none of the risk.

It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Issa, a California Republican. Taxpayers “deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.”

A perfect demontration that the FED has way too much power.

The New York Fed ordered the crippled insurer not to negotiate for discounts in settling the swaps. The decision to pay the banks in full may have cost AIG, and thus taxpayers, at least $13 billion

They were ordered not to negotiate and had to pay 100% on the dollar. This was our money people. We have all been scammed.

www.bloomberg.com
(visit the link for the full news article)

reply to post by Erasurehead


Good thread,i hope it gets the attention it deserves.S&F

Paulson, Geithner, Bush, Obama et al need to be prosecuted for all of these backdoor dealings.

When I heard Paulson was allowed to sell his shares in GS for $300 million without paying the required capital tax gains, I knew something big was going to happen. The excuse was that to remove the appearance of impropriety, they are allowed to sale holdings that may be construed as allowing (cannot think of the word-meaning having two alternate allegiances).

Anyway, do you know about the DIGG Geithner question and answer debacle.

I have been a member there for several years. We were able to get really great questions and great accusatory questions to the top.

They never asked any of the questions that put any of the government in a bad light.

People need to wake up that NOTHING is done for the people of the US. It is all about the Banks, Corps, and the government hegemony.

OP S&F

THE ENDISNIGHE

I just got off the phone with Barbara Boxer's office. I pointed out that at the least Geithner lied to the Congress about the AIG deal, and the most he committed perjury. Either way I consider him a criminal involved in a conspiracy to commit fraud on behalf of his Wall Street friends.

I demanded his dismissal and prosecution, along with the criminal banking cartel at Goldman-Sachs, JP Morgan, and the rest of the banksters. I pointed out that I found none of the people to be Americans, as for the last year every time there was good news for the real economy (what little there was) Wall Street tanked, and every time there was bad news for the rest of us, Wall Street boomed and partied.

Please do your duty and call your Senators and Representatives and demand Geithners arrest for fraud, perjury, and treason, along with his cronies on Wall Street.

Gotta go now and make some calls to Washington.

And this comes as a suprise? Geitner comes from a CIA family background, and is simply a stooge for the powers that be.

reply to post by apacheman


Good post.
I am doing the same. I am contacting my representatives and demanding a full investigation of the fraud committed against the American people. I am also contacting the media to find out why this is not being covered. This should be the lead story. This is being surpressed because if it does not appear on TV news most Americans will not even hear about it.

Was hoping for more action on this thread. Maybe the title is not sensational enough.

It should read:
AIG rescue proved to be one of the biggest crimes committed against the American people.

I am not defending Gietners actions at all. I hope his is arrested, tried and found guilty of a host of illegal actions. Unfourtunatly, AIG needed to be bailed out at 100 cents on the dollar. AIG held the insurance for almost all the CMO, CDO and CDS instruments inthe market. If the Insurance were allowed to collapse, all of these instruments would have been downgraded, thereby losing value and increasing yield rates, ultimatly, bankrupting any and every bank that had a piece of these financial WMD's

Wow.

It's all coming apart now.

The war...the economy...the corruption...the lies.

Our future looks grim.

here's a link to the Geithner/AIG emails:

www.scribd.com...

Disgusting.

Geithner must go.

[edit on 8-1-2010 by apacheman]

Sad to say, the khan artist himself, geither, will not be perscuted..he is one of the big boys* with the FED...if it was yuo or me, wed ebe in a federal prison. It is evidnce now, and hope htis makes front page news* how greedy corporate america has made its buisnesses, and how out of control it is. Obama is part of it..that comment he made weeeks ago, about how we, meaning us the citizens, cannot treat money as if it were monopoly money....effin liar of a president.

reply to post by Angiras


Interesting statement. Do you have any sources on Geithner's family ties to the CIA?

Isn't it grand? Goldman Sachs is like an invisible puppet master, pulling the strings of public and private policy via it's tentacles that are suffocating the government.

Robert Rubin - employee of Goldman Sachs. Served on Clinton's National Economic Council, then appointed as Secretary of Treasury. Now is one of Obama's advisers.

Stephen Friedman - employee of Goldman Sachs. Served on the National Economic Council, then appointed chairman of the Federal Reserve. Member of the CFR. Now is chairman of United States President's Foreign Intelligence Advisory Board for Obama.

Henry Paulson - employee of Goldman Sachs. Secretary of Treasury for President Bush. Worked, along with Fed chairman Ben Bernake, in organizing the first AIG bailout, which gave Goldman Sachs a lump sum of $12.9 billion.

Timothy Geithner - former president of the Federal Reserve. Has numerous ties to Goldman Sachs. Obama's pick for Secretary of Treasury. Organized the new AIG bailout, with large sums of money ending up with Goldman Sachs.

Does anyone not notice the pattern here?

Sometimes it makes me sick.

Heres one thing that would make obama loko good...and get re elected. Go to ALL the big banks and organizations that took our tax money in huge sums of billions of $$$ and GIVE IT BACK TO ME and you all. Its MY money* and yours... if obama is truley not associated with the bankers, then this should happen. give us our tax raped money back*

Other Goldman Sachs-government connections:

Robert Zoellick - employee of Goldman Sachs. Member of the Project for the New American Century. Sat on the Advisory board of Enron, member of the CFR and is former Executive Vice President of Fannie Mae. Appointed by George W. Bush as president of the World Bank.

George Herbert Walker IV - employee of Goldman Sachs. Second cousin of George W. Bush. Worked for Neuberger Berman, the former asset management arm of Lehman Brothers.

Reuben Jeffery III - employee of Goldman Sachs. Appointed by Bush to Under Secretary for Economic, Energy and Agricultural Affairs. Served as Special Assistant to the President and Senior Director for International Economic Affairs at the National Security Council, as well as Executive Director of the Coalition Provisional Authority.

Joshua B. Bolten - employee of Goldman Sachs. Appointed by Bush as the Chief of Staff.

Robert D. Hormats - employee of Goldman Sachs. Worked closely with President Clinton and Timothy Geithner in "developing Washington's ‘strategic and economic dialogue’ with Beijing." Current Under Secretary for Economic, Energy and Agricultural Affairs. Member of the CFR. National Security Adviser to Henry Kissinger (whose company, Kissinger Associates, was founded on a loan from Goldman Sachs), Zbigniew Brzezinski, and Brent Scowcroft, as well as serving as Assistant Secretary of State.

Originally posted by David9176
Wow.

It's all coming apart now.

The war...the economy...the corruption...the lies.

Our future looks grim.

I think only a small minority of us actually give a crap.

Most are stuck in their ignorance.

reply to post by Lemon.Fresh

I think only a small minority of us actually give a crap. Most are stuck in their ignorance.

I believe that statement needs repeating.

Originally posted by Lemon.Fresh

Originally posted by David9176
Wow.

It's all coming apart now.

The war...the economy...the corruption...the lies.

Our future looks grim.

I think only a small minority of us actually give a crap.

Most are stuck in their ignorance.

I think you're most probably correct.

No one seems to give a damn about this scandal... As an example, this related thread www.abovetopsecret.com... got hardly any interest.

The whole thing is outrageous... but where is the outrage?

reply to post by Someone336


Interesting. Got me a thinking....

The same can be said about Monsanto - and most likely many other companies - but they are good for my purpose. Sending their own employees to the government to write the laws that help the company. Seriously, between the two companies, GS and Monsanto, we have Monsanto completely mucking up the worlds food supply and GS screwing the economy and it seems as if we can do nothing other than bend over for either.

With friends like these who needs enemies, huh?

Crash just one of those and people are screwed and both are rapidly declining.

Pretty disgusting how these peoples minds work.