informationliberation
The news you're not supposed to know...




Austrian Economics: Understand Economics, Understand the World
The Century of the Self: The Untold History of Controlling the Masses Through the Manipulation of Unconscious Desires
The Disappearing Male: From Virility to Sterility

The Obama Deception: The Mask Comes Off
Operation Gladio: The Hidden History of U.S. Sponsored False Flag Terrorism in EuropeThe New American Century: The Untold History of The Project for the New American Century
(more)
Article posted Jan 10 2010, 7:17 PM Category: Politics/Corruption Source: Homeland Stupidity Print

Geithner's Fed told AIG to hide "backdoor bailout"


The Federal Reserve Bank of New York, during its $180 billion bailout of American International Group, Inc., instructed AIG to omit details of its purchase of certain toxic assets from a December 24, 2008, Securities and Exchange Commission filing, according to e-mails between the company and the Fed released Thursday.

Using bailout money provided by the Fed, AIG paid a number of banks 100 percent of the face value of credit-default swaps, contracts tied to subprime home loans, at a time when other institutions were negotiating deep discounts for the paper. The names of the banks were also omitted from the SEC filing.

The information was finally disclosed in March 2009 after the SEC challenged AIG’s filing, prompting lawmakers and analysts to call the transactions a “backdoor bailout” of the banks. Topping the list of banks which benefited from the backdoor bailout of their toxic paper were Goldman Sachs and Societe Generale SA.

The e-mails, released Thursday by Rep. Darrell Issa (R-Calif.), ranking member of the House Oversight and Government Reform Committee, show the Fed wanted a number of other details about the AIG bailout withheld or their disclosures delayed.

The coverage from Bloomberg News has all the gory details, including a non-denial denial that Treasury Secretary Timothy Geithner, who was then chairman of the New York Fed, had anything to do with the cover-up.

Rep. Barney Frank (D-Mass.) has called the disclosure “troubling” and plans to hold hearings on the issue, though he publicly maintains full confidence in Geithner.

“The new details revealed today regarding AIG's bailout in 2008 come as no surprise to those of us who believe that the American people deserve full transparency from the Federal Reserve,” Rep. Ron Paul (R-Texas) said in a statement. “My strong suspicion is that secret arrangements between cronies like this are not an anomaly, but the norm.”

The Fed, as you’ll recall, fought disclosure of the information, claiming that it would erode market confidence. No such thing happened, of course.

If dollar investors aren’t already spooked enough to run like hell, it’s hard to see what would convince them that the dollar isn’t nearly as safe as they seem to think.

“The status quo has made it entirely too easy and too tempting to behave recklessly with public funds in total secrecy,” Paul said. “The system needs radical change, but we should start with honesty, transparency and accountability to the American people about how their money is being handled.”

Update: TheNew York Times reported Friday that the Treasury department explicitly denied Geithner had anything to do with it. TheTimes quoted Treasury spokeswoman Meg Reilly as saying Geithner “played no role in these decisions and indeed, by Nov. 24, he was recused from working on issues involving specific companies, including A.I.G.”





Latest Politics/Corruption
- Placing Their Bets Early, DC Lobbyists Put Biggest Money on Clinton
- St. Louis Taxpayers Need Not Approve Of Sports Stadium Built With Their Money, Judge Decrees
- Court Forces Christian Bakery to Serve Gay Weddings
- Batesville, Indiana Mayor Arrested For Patronizing Male Prostitute, Prostitute Arrested For Failing To Disclose HIV Status
- Toxic Fallout Continues as Colorado Mine Spill Declared Three Times Larger Than Stated
- Flashback: Donald Trump Calls For 'Execution' of Edward Snowden
- Carly Fiorina Says You "Can't Have President Who Is Thin-Skinned," Whines About Trump Insulting Women
- Paul: Trump Is An Insider Pretending To Be An Outsider









No Comments Posted Add Comment


Add Comment
Name
Comment

* No HTML


Verification *
Please Enter the Verification Code Seen Below
 


PLEASE NOTE
Please see our About Page, our Disclaimer, and our Comments Policy.


FAIR USE NOTICE
This site contains copyrighted material the use of which in some cases has not been specifically authorized by the copyright owner. Such material is made available for the purposes of news reporting, education, research, comment, and criticism, which constitutes a 'fair use' of such copyrighted material in accordance with Title 17 U.S.C. Section 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner. It is our policy to respond to notices of alleged infringement that comply with the DMCA and other applicable intellectual property laws. It is our policy to remove material from public view that we believe in good faith to be copyrighted material that has been illegally copied and distributed by any of our members or users.

About Us - Disclaimer - Privacy Policy



Advanced Search
Username:

Password:

Remember Me
Forgot Password?
Register

Texas Town Fires Police Dept., Hires Private Citizens For Security -- Guess What Happened to Crime? - 08/28Jerry Seinfeld Hilariously Trolls Cops After they Shut Down his Son's Lemonade Stand - 08/28Police Make Instructional Video on How to Be Nice While they Rob You - 08/28Vester Lee Flanagan, Social Justice Avenger - 08/28Bill That Was Supposed To Limit Police Drone Activity Changed By Lobbyist To Enable Weaponized Drones - 08/28City of San Jose Looking To Attach Automatic License Plate Readers To Garbage Trucks - 08/28Cocaine Production Plummets After DEA Kicked Out of Bolivia - 08/28Reality Check: Is There A Link Between Mass Shootings and Anti-Depressants? - 08/28

Man Follows Speeding Cop, Finds Out He Was Speeding To Buy PeanutsMission Creeps: Homeland Security Agents Confiscate Women's Panties For 'Copyright Infringement'Cop Shoots Couple's Dog, Threatens Jail For Trying To Save Dog's LifeSWAT Team Shoots Teen Girl & Her Dog During Pot Raid On Wrong HomeDurham, NC Cop Testifies Faking 911 Calls To Enter Homes Is "Official Policy"Indiana Sheriff Says US A "War Zone" To Justify New MRAP Military VehicleTampa Cops Surveil Pot Dealer, Catch Him Selling Pot, Raid His Home & Kill Him"You Just Shot An Unarmed Man!": Witness Says Police Shot His Friend With His Hands Up
(more)

 
Top