Tuesday, January 12, 2010
Bankergate: The Fall Of Treasury Secretary Timothy Geithner
Explosive new e-mails released last week could see Treasury Secretary Timothy Geithner embroiled in criminal charges for his role in the cover up that exposes the monumental criminality behind the $182.3 billion dollar bailout of American International Corporation. In November and December of 2008 The Federal Reserve Bank Of New York instructed the bailed out AIG to hide from public details regarding payments the insurance giant made to banks, including Goldman Sachs Group INC. and Scoiete Generele SA. Using Fed Secure taxpayer bailout money, AIG paid several banks 100 percent of face value of credit default swaps, as other financial institutions were negotiating deep discounts for unregulated paper assets that do not have to be backed by cash. The decision to pay the in full may have cost AIG, and therefore the taxpayers, at least $13 billion dollars over the odds. The "Backdoor Bailout" of the banks, as it has been dubbed was exposed in March 2009 after the SEC challenged AIG filings, however, e-mails obtained by Rep. Darrell Issa, ranking member of the House Oversight And Government Reform Committee, have reignited the situation as they conclusively expose a collusion between AIG and the FED to deceive the public. The e-mails, the content were highlighted in a Bloomberg News Article, also shows that the FED wanted numerous other details about the AIG bailout withheld or delayed from public oversight. Despite denials from the Treasury and New York Federal Reserve that Geithner was involved in the scandal, as President of The New York Federal Reserve at the time, his head now rest firmly on the chopping block where he awaits his fate. Geithner extensive connections to Goldman Sachs also raises serious questions, given that the investment bank directly profited from the AIG payments. Meanwhile, Bear Stearns and Lehman Brothers both investment banks in direct competition with Goldman Sachs were not bailed out when bad debt forced them to cease operations under the same circumstances as AIG. Finally, Geithner and the rest of the New York Federal Reserve should be charged with defrauding the American taxpayers out of billions of dollars. They should arrest this clown at the Treasury Department but I don't expect for Attorney General Eric Holder to enforce the law against a member of the Obama Administration.