Scheer's Billions Dished Out in the Shadows explains that while arguing about the stimulus package,
The problem is with what is not being debated: the far more expensive Wall Street bailout that is being pushed through—as in the case of the latest AIG rescue—in secret, hurried deal-making primarily by the unelected secretary of the treasury and the chairman of the Federal Reserve
What AIG does with our hard earned cash is shrouded, but the Economic Times reports
Goldman Sachs and Deutsche Bank each received some $6 billion in payments between September and December 2008, to cover exposures they had at the failing insurer.
The names of all AIG's derivative counterparties and the amount of taxpayer money they have received is still not known, but political pressure is mounting for disclosure.
Tell Congress to listen to Krugman & Stiglitz, not those who got us into this mess
Toll free: 1-800-828-0498
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Tell President Obama to listen to Krugman & Stiglitz, nobel prize winning economists, not those who got us into this mess, who have conflicts of interests galore that hurt the American taxpayer, but help their friends on WS
Comment line: 202-456-6213 and comment page: http://www.whitehouse.gov/...
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The chairman of the Federal Reserve received yet another sternly worded letter on March 4, 2009 from Carolyn B. Maloney, Chair, Joint Economic Committee:
IN LETTER TO BERNANKE JEC CHAIR MALONEY RENEWS REQUEST FOR AIG TRANSPARENCY
I requested information on the identities of the counterparties from whom the CDOs and CDS were purchased, the price paid by the Fed for the CDOs, CDS and RMBS, and a description of how the prices were determined.
However, to date, your office has not provided that information to me nor, as far as I am aware, to the Financial Services Committee. This letter is to reiterate that request and to ask that the information be provided to me at the Joint Economic Committee and to the Financial Services Committee as soon as possible. As the New York Times editorial said on March 3, 2009 about these very transactions: "The AIG bailouts fail the basic test of transparency: Who ends up with the money?" I agree with the Times that "not knowing is not acceptable."
In further support of my request, I attach a letter from a fellow New Yorker, the noted economist and Nobel laureate Joseph Stiglitz, separately requesting release of this information on his own behalf and explaining how the Fed’s providing this information is essential to informed debate over, and efficient development of solutions to, our current economic crisis, as well as to Congress’ ability to oversee the use of taxpayers’ money with respect to the AIG bailout or similar efforts.
Some interesting facts about AIG, Henry Kissinger, and Eliot Spitzer:
http://en.wikipedia.org/...
In 1962, Greenberg was named by AIG's founder, Cornelius Vander Starr, as the head of AIG's failing North American holdings. In 1968, Starr picked Greenberg as his successor. Greenberg held the position until 2005, when he stepped down amid a major accounting scandal and was replaced by Martin J. Sullivan.
Greenberg was both a social friend and client of Henry Kissinger, utilising his consultancy, Kissinger Associates, for advice and operations in a number of countries, particularly in Asia. In 1987 he appointed Kissinger as chairman of AIG's International Advisory Board.[1]
Fraud allegations
On March 15, 2005, AIG's board forced Greenberg to resign from his post as Chairman and CEO under the shadow of criticism from Eliot Spitzer, attorney general of the state of New York. On May 26, 2005, as part of a series of actions against leaders of large corporations, Spitzer filed a complaint against Greenberg, AIG, and Howard I. Smith (ex-CFO of AIG) alleging fraudulent business practice, securities fraud, common law fraud, and other violations of insurance and securities laws. After a subsequent investigation, however, all criminal charges were dropped, and Greenberg was not held responsible for any crimes. The State Attorney General's office however is still pursuing Mr. Greenberg in civil court for many of these same criminal allegations.
[edit] Criminal charges
Greenberg's public statements show that he found the Spitzer investigation to be very troubling. He maintained his innocence throughout the investigation, and alluded to the possibility that Eliot Spitzer might be conducting a high-profile witch-hunt in the interests of furthering his political ambitions.[citation needed]
[edit] Civil charges
Spitzer did, however, bring civil charges against Greenberg, though he dropped two of the six initial charges in September, 2006.[3] Greenberg's attorney claimed vindication with the dropping of the two charges, but Spitzer's office maintained that the four remaining charges are the core of the State's original charges.
Verrry Interesting!
Spitzer's financial records were gone over with a fine toothed comb, and they sure fixed his wagon, but they won't allow anyone to see where all our taxpayers' money is going via AIG.
Some interesting facts about our last Secretary of Treasury, Henry Paulson, and AIG money recipient, Goldman Sachs:
http://en.wikipedia.org/...
he [Henry Paulson] influenced the decision to create a credit facility (bridge loan & warrants) of US$85 billion to American International Group so it would avoid filing bankruptcy.
In late September 2008, Paulson, along with Federal Reserve Chairman Ben Bernanke, led the effort to help financial firms by agreeing to use US$700 billion dollars to purchase bad debt they had incurred.
Conflict of interest claims
It has been pointed out that Paulson's plan could potentially have some conflicts of interest, since Paulson was the former CEO of Goldman Sachs, a firm that may benefit largely from the plan.
Some interesting facts about our current Secretary of the Treasury, Timothy Geithner:
http://en.wikipedia.org/...
Geithner worked for Kissinger and Associates in Washington, D.C., for three years
and he, along with Larry Summers, were on the deregulation bandwagon, which led to this problem in the first place, which should disqualify him from participating further in the solution!
Billions Dished Out in the Shadows
It wasn’t that long ago that a couple of hustlers operating out of an AIG office in London were going wild making money off selling insurance on credit default swaps that no one could understand, but the company execs loved those huge profit margins. To challenge their maneuvering, as some in Congress attempted, was said by their defenders, including Geithner, to put them at an unfair disadvantage in the world market. Ignorance was bliss ... until the bubble burst.
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Sing to the Tune of Blowing in the Wind, a ditty we sang to Henry Kissinger, et al., to end the Viet Nam War, another debacle he had his thumb in.
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Where has all our money gone, long time passing?
Where has all our money gone, long time ago?
The answer my friend is blowing in the wind. The answer is blowing in the wind.
When will they ever learn? When will they ever learn?
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Here's another anti-Viet Nam war ditty to recycle
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And it's one - two - three
What are we paying for?
Don't ask me. They don't give a damn. Next stop is another scam.
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