Geithner Tells AIG Keep Your Mouth Shut!

Treasury Secretary Tim Geithner can’t seem to keep himself out of trouble. Geithner told AIG “.” to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis.” Bloomberg

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.”

Some 120 B plus went to European Banks at 100 % on deals that other banks were settling for 40 cents – including 12 Billion on behalf of Goldman Sachs. The fact they were paying 100% on the dollar when they could have discounted it, was scratched out of the reports.  Is this also part of the coverup to explain why GS is still standing and its chief competitor Lehman let go?

Do you think this was the only example of this type of behavior during the 2008 financial meltdown? This was just the first of many favors Goldman Sachs got in the last 15 months.

Why do you think so much of the toxic assets are STILL being carried off the books?

Why is Fannie Mae and Freddie Mac coming back for billions more in taxpayer bailouts?

Geithner is just a symptom of what went on then and is still going on at the taxpayer’s expense.

Someone (Obama) should have seen trouble coming when Geithner was a mere nominee for Treasury Secretary when it was revealed he hadn’t paid his taxes. The fool blamed it on Turbo tax. Oy vey! So what’s Geithner going to blame this on now?

Second question, what is Barack Obama going to do about this?


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