"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Thursday, January 7, 2010

Tim Geithner tells AIG to put a sock in it

Jan. 7 (Bloomberg) -- 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.
You are nothing but a tag team partner of Hank Paulson without Goldman Sachs on your resume. Go stand in the corner and think about what you have done. IT IS TIME FOR YOU TO GO!

One of this grandpa’s goals for 2010 is to see Turbo Tax Timmy out of office. You sir are not in the best interest of our grandchildren. Unless I am mistaken, I do not believe Obama had your behavior in mind as he pounded on the campaign pulpit, “yes we can”.

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