Treasury Secretary Geithner’s NY Federal Reserve Told AIG To Withold Payout InformationPosted by Al @ 8:18 am
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.