Archive for January 12th, 2010

In another case of the Federal Government being complicit and covering up the events of the AIG bailout/payout and America’s manufactured meltdown, the SEC has allowed the details of the AIG fiasco to remain secret until 2018. Of course, if that date holds up, those complicit in this corruption will be far removed from its association and lessen the likelihood that revelations of the details will result in criminal charges.

As reported by Reuters News,

It could take until November 2018 to get the full story behind the U.S. bailout of insurance giant American International Group (AIG.N) because of an action taken last year by the Securities and Exchange Commission.

In May, the SEC approved a request by AIG to keep secret an exhibit to a year-old regulatory filing that includes some of the details on the most controversial aspect of the AIG bailout: the funneling of tens of billions of dollars to big banks like Societe Generale, Goldman Sachs (GS.N), Deutsche Bank (DBKGn.DE) and Merrill Lynch.


The SEC’s decision to approve AIG’s request for confidential treatment…could spark controversy now following the release last week of 14-month-old emails that reveal that some at the New York Fed had discussions with AIG officials about how much information should be disclosed to the public about the Maiden Lane III transaction.

As expected from these Federally-appointed crooks, the SEC declined comments on this.

The Fed’s bailout of AIG long has been controversial because the banks that sold CDOs to Maiden Lane III were paid 100 percent of face value, even though many of the securities were worth substantially less

This country, along with its economy will continued to be drugged into submission. It seems the design of this collapse was well designed and orchestrated. The intergral players were chosen to help grease the skids as to allow the American economic collapse while these banking and moneyed interests of this country lined their pockets with taxpayer dollars.

If that’s not enough, in an supposed unrelated matter, Rahm Emanuel was a Director at Freddie Mac/Fannie Mae (Clinton appt.) when the decisions were made to cook the books to mislead and swindle shareholders as to actual losses and to use accounting methods that would prolong disclosure of these events until after those who collapsed Fannie and Freddie were long gone. You know, those people who made millions out of their fraud. The result was the collapse of Fannie and Freddie being backstopped with an endless amount of taxpayer dollars, including the $800 billion given to them the last day of 2009.

Under the protection of Executive Privilege, the Obama administration has refused to cooperate with information requests for the minutes of meetings attended by Rahm during his 14-month stay.  Unfortunately, the statute of limitations runs out soon, so for now, Obama and gang have kept the hounds at bay. This is key to uncovering the massive corruption within the White House.

Rahm used money from his Fannie/Freddie piggy bank to help finance his successful Congressional race. The more onerous issue is the fact that during Rahm’s Congressional stint, he co-sponsored a bill that took away regulatory oversight on Freddie/Fannie by leaving the Federal Housing Finance Agency(FHFA) without an Inspector General, as reported by ABC in November 2009.

Amazingly enough, Rahm, ended up being appointed to the House Financial Service committee and also on the sub-committee that oversaw Freddie Mac/Fannie Mae. A good read on this can be found here, titled Rahm Emanuel’s Freddie Mac Profits.

And of course, there’s Barney Frank’s involvement in this fraud and the fact that he had a homosexual relationship with then executive of Fannie Mae, Herb Moses. A good read on that can be found in this article, ‘Media Mum on Barney Frank’s Fannie Mae Love Connection’.

So, as we peel back more layers of this rotten onion, we start to see intentional efforts to sink the American economy by financial and moneyed interests as they steal taxpayer money.

In a story reported last week, BusinesWeek reported that the current U.S. Treasury Secretary, Tim Geithner, while heading up the New York Federal Reserve Bank, told AIG to not publicly disclose the payout it provided to banks with taxpayer bailout money.

A statement by Congressman Darrell Issa revealed the findings:

“It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information”. Issa said Taxpayers “deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.”

AIG refused comment and U.S Treasury Dept. deferred comments to New York Federal Reserve Bank. The Fed wanted to keep that AIG payout detail out of the public disclosure, with Donald Kohn of the NY Fed testifying that revealing the information would hamper AIG’s ability to continue operations.

The e-mails span five months starting in November 2008 and include requests from the New York Fed to withhold documents and delay disclosures…The NY Fed and its lawyers declined comment on the emails.

the New York Fed suggested that AIG refrain in a filing from mentioning so-called synthetic collateralized debt obligations, which bundled derivative contracts rather than actual loans.

As part of a bailout that swelled to $182.3 billion, AIG and the Fed created Maiden Lane III, a taxpayer-funded facility designed to remove mortgage-linked swaps from the insurer’s books.

I think it’s obvious that the banking and moneyed interest in the U.S. designed America’s economic meltdown. As the layers of this onion are peeled back, more corruption is revealed. In a follow-up to this you will see the continued corruption, with the likes of Tim Geithner,  the Federal Reserve Bank, the U.S. Treasury. the SEC, and others. As reported on 1/ 12/10, the SEC agreed to allow the details of the AIG bailout/payout to be kept secret until 2018. Talk about covering your ass.