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January 28, 2010
Rep. Stephen Lynch ( Democrat - Mass.) Blasts Tim Geithner
Rep. Stephen Lynch ( Democrat - Mass.) blasts Tim Geithner during a session of the House Oversight and Government Reform Committee.
A little history about this:
Geithner had AIG hide details about payments to banks
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, e-mails between the company and its regulator show.
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. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.
The New York Fed took over negotiations between AIG and the banks in November 2008 as losses on the swaps, which were contracts tied to subprime home loans, threatened to swamp the insurer weeks after its taxpayer-funded rescue. 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.
“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.” President Barack Obama selected Geithner as Treasury secretary, a post he took last year.
Wild Thing's comment.......
The most corrupt administration we have ever seen. This administration is criminal. This conduct makes Enron look like child’s play.
The way I understand it, AIG was the designated patsy. They were demonized. Their bonuses were cursed. They had ACORN sent after their executives to mount protests.
Meantime, all they were really doing was to pass the money THROUGH AIG to Goldman Sachs, J. P. Morgan, and a couple of other banks who were their political donors. Goldman Sachs made huge profits, not only on all the money passed through, but also on shorting AIG.
What they presumably told AIG was, “You play the patsy, or you’re going bankrupt and will spend the rest of your lives in jail.” So AIG rolled over and agreed to be demonized.
This wasn’t just Geithner. Obama was in it well before he became President. He was the second biggest recipient of donations from Goldman Sachs, after Chris Dodd.
All of this reminds me of a movie called , "The International".
Just one more thing of interest, Timmy Geithner’s dad, Peter, was Stanley Ann Dunham's boss. Stanley Ann Dunham is Barack Hussein 0bama's mother.
Posted by Wild Thing at January 28, 2010 03:40 AM
Comments
"Just one more thing of interest, Timmy Geithner’s dad, Peter, was Stanley Ann Dunham's boss. Stanley Ann Dunham is Barack Hussein 0bama's mother."
Cozy isn't it?
Posted by: Bob A at January 28, 2010 10:09 AM
Tim Geithner fits right into obama's administration. A double-dealing financial crook working for a double-dealing political crook. Both using the taxpayers' money to pay off their buddies and get kickbacks in return.
Posted by: TomR at January 28, 2010 01:30 PM
Bob A., it sure is cozy like you said.
Posted by: Wild Thing at January 28, 2010 07:50 PM
Tom, good descroption.
Posted by: Wild Thing at January 28, 2010 07:52 PM
