Explosive emails released last week could see Treasury secretary Timothy Geithner become embroiled in criminal charges for his role in a cover up that exposes the monumental criminality behind the $182.3 billion bailout of American International Group Inc.
In November and December 2008, The Federal Reserve Bank of New York instructed the bailed out AIG to hide from the public details regarding payments the insurance giant made to banks, including Goldman Sachs Group Inc. and Societe Generale SA.
Using Fed secured taxpayer bailout money, AIG paid several banks 100 percent of the face value of credit-default swaps, as other financial institutions were negotiating deep discounts for the unregulated paper assets that do not have to be backed by cash.
The decision to pay the banks in full may have cost AIG, and therefore taxpayers, at least $13 billion over the odds.
The “backdoor bailout” of the banks, as it has been dubbed was exposed in March 2009 after the SEC challenged AIG’s filing, however, e-mails obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee, have re ignited the situation as they conclusively expose a collusion between AIG and the Fed to deceive the public.
Despite denials from the Treasury and the New York Fed that Geithner was involved in the scandal, as the President of the New York Fed at the time, his head now rests firmly on the chopping block where he awaits his fate.
Don't be real motherfucking surprised if all this is swept under the rug in fairly short order.
ReplyDeleteMuch like ClimateGate and the under-reported backroom dealings of our valiant "healthcare reform" gang with fatcat insurers, anything that might cast dispersion on DumB-O & Co. either gets covered up, or a "terrorist attack" is arranged for distraction, or a fall guy like Madoff is found so the establishment can pat itself on the back for dealing with it, when they haven't.
Hell, I'm wondering at this point Dubya had him whacked after the '08 elections and we've spent the last year listening to the world's biggest ventriloquist dummy...Doesn't seem to have been much difference.
enough to piss off the pope
ReplyDeletebig effin suprise,eh?
ReplyDeleteTed - I should have known that Obama would continue with Bush's policies when he kept a bunch of the same advisers, switched people from the Fed to the treasury and all that jazz. I hope they aren't able to sweep this under the rug, but it's a real big rug.
ReplyDeleteYDG - I hear he shits in the woods.
Crazy4 - Not to us!