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Today's Top News
Tip of the Iceberg
In a December New York Times op-ed, we called for the full public release of AIG email messages, internal accounting documents and financial models generated in the last decade. Today, a Bloomberg story revealed that under Timothy Geithner’s leadership, the Federal Reserve Bank of New York told AIG to withhold details from the public about its payments to banks during the crisis. This information was discovered when emails between the company and the Fed were requested by representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.
The emails requested by Issa span five months beginning in November 2008. The Fed’s request to suppress this information would not have come to light without the release of these emails. If five months of emails reveal information key to our understanding of the aftermath of the crisis, imagine what 10 years of emails could contribute to our understanding of its causes. We believe the AIG emails and other internal company documents are the ‘black box’ of the financial crisis. If we understand the failure of AIG, we will more fully understand the crisis - what caused it and more importantly how to prevent it from happening again.
As such, today we are renewing our request for the full public disclosure of all AIG documents. We believe the government should put these documents on-line, thereby establishing an open-source investigation that would allow journalists and citizens the opportunity to piece together the story of what happened at AIG and in so doing more fully understand what happened in the broader financial collapse. AIG — and more specifically its credit-default swaps exposure — was an important contributing factor to the crash of the financial markets. What sets this company apart from others that played a role in the crisis is that we, the taxpayers, own it. As we noted in our original piece, US taxpayers bought 80% of AIG when they bailed the company out with $180 billion last year. As owners of the company, taxpayers are also owners of AIG. As owners of the company we can demand the release of these documents.
The taxpayer’s stake in AIG is held by the A.I.G. Credit Facility Trust, whose three trustees are Jill M. Considine, a former chairman of the Depository Trust Company and a former director of the Federal Reserve Bank of New York; Chester B. Feldberg, a former New York Fed official who was chairman of Barclays Americas from 2000 to 2008; and Douglas L. Foshee, chief executive of the El Paso Corporation and chairman of the Houston branch of the Federal Reserve Bank of Dallas. We call on these three officials (interestingly all former Fed officials) to immediately release the documents we request.
The value of these documents, if it were ever in doubt, was certainly proved by today’s revelations.
Release the emails.
- Posted in
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39 Comments so far
Show AllThe government will fight to the end to suppress those documents in my humble opinion, as they let too many cats out of the bag. Outrage is already building to a fevered pitch over the bailouts as Wall Street is given preferred treatment by Washington.
Gary
Which, again, is why people like Spitzer and Warren will never be in the Obama Administration. Can you imagine Spitzer instead of Holder as AG? I didn't think so.
Boggles the imagination alright!
Gary
Spitzer is banned for life from Organized Government exactly as Pete Rose is banned from Organized Baseball, and for committing the same unpardonable crime: Getting Caught.
· Yr Obd't Servant
Let's be clear. All those in power have kinky cravings but those who shake up things or blow the whistle on others for treasonous acts against the people or the consititution are always attacked, sometimes framed, exposed, and/or driven out by the ruling elite.
Having a mistress doesn't strike me as a treasonous act unless one is paying for such a luxury with taxpayer dollars.
Perhaps if there was more acceptance of such things for those with such political power there would be less blackmail and political extortion going on among all our forms of government.
Are rock stars and movie stars held in such contempt for being extravagant is such ways?
I don't want Spitzer to become Julius Caesar, all I want is for that junk yard dog turned loose on the varmints (with top of the line body armor and full 360 security). Yup he may be an ugly dog but he's OUR junk yard dog and we know them from their deeds. Given the chance that nasty arrogant son-of-a-whatsit will sink in his incisors to the bone and never let go till the beast is dead. I like that.
No prisoners. No mercy.
The law is for chumps, not elite like Tim Geithner.
Everyone who has been paying attention the last ten years knows that when a member of the oligarchy commits a crime the congress retroactively immunizes him or the President covers it up by spouting law obstructing nonsense such as "We must look forward not backward".
Therefore the NY Fed did NOT send any incriminating emails to AIG. And the only rational conclusion is Eliot Spitzer, William Black and Frank Partnoy are delusional and in need of heavy medication.
Tim Geithner did NO wrong and should be applauded for his patriotism and service.
Tim Geithner did NO wrong and should be applauded for his patriotism and service.
Tim Geithner did NO wrong and should be applauded for his patriotism and service.
Say it 100 more times and it becomes the TRUTH.
Exactly. It's just like that the argument that has now been espoused by Dana Perino and not Guiliani -- and I'm sure others -- that there was no terrorist attacks on U.S. soil under Dubya's watch. It's been said over and over. Now, these two may be right if it was a planned attack by the CIA, as I've heard some espouse. What is the truth? Well, in our highly propagandistic government, who knows? One thing is for sure, I believe nothing that comes from the Obama Administration anymore than I did from the Bush Administration.
In any case, I tend to listen, and believe what I hear from people like Messrs. Black and Spitzer, and of course, Warren, because it jibes with what I see going on around me out there in the real world. Plus the fact that Wall Street's incredible rebound makes no sense at all.
"Plus the fact that Wall Street's incredible rebound makes no sense at all."
Kind of makes one wonder if the stock market isn't being "juiced" with taxpayer money.
Is the Fed Juicing the Stock Market?
http://www.informationclearinghouse.info/article24311.htm
>>Exactly. It's just like that the argument that has now been espoused by Dana Perino and not Guiliani -- and I'm sure others -- that there was no terrorist attacks on U.S. soil under Dubya's watch.<<
One little bitty problem with that notion -- 9-11 happened under Bush2's watch.
Gary
AIG changed it's name to Farmers in my State. They just went down the hole, and Alice wont find them for 3 years.
Eliot Spitzer for President!
-30-
Nomi Prins for head of SEC enforcement and Michael Hudson for chairman of the President's Council of Economic Advisors!
Poet
/sarcasm on
Elito Spitzer has no credibility. He paid for sexual services.
/sarcasm off
you see the mug on that guy...of course he had to pay!
Whatever his past moral failings were, Eliot Spitzer has the known reputation of someone who took on and successfully prosecuted and jailed Wall Street crooks. What will be most fun is to listen to whatever rationalizations those who are "the powers that be" have for not releasing such emails and making them available to the owners of AIG, the American people.
Almost as much fun will be listening to explanations of why, in light of the disclosures about the role of the FED ordering AIG to suppress the details about its payments to banks during the finnacial crisis, the three trustees appointed to administer the public's majority ownership stake of AIG are all former FED officials.
As I read this ultimatum it occured to me that Eliot Spitzer may, as a well-informed expert and journalist, be more of a headache to the financially corrupt in power than he ever was as either the Attorney General or Governor of New York. In his current position Spitzer gets to pose the questions others are either too distracted, too frightened, or too muzzled to ask.
Wouldn't it be marvelous if Spitzer, in true Phoenix-like fashion, became the scourge all the Wall Street crooks feared he would be if allowed to remain in political power? In the hands of the right person, truly the pen is mightier than the sword and can realign the skewed scales of justice.
Poet
It would be poetic justice. I hope it happens.
Something bizarre about the only public official going after Wallstreet shenanigans WHEN IT MATTERED being turned over to the IRS for call-girl-payments BY HIS BANK.
Before the financial crisis hit the fan, Spitzer was investigating AIG. As I recall it revolved more around setting up offshore non-insurance insurance schemes to help corporations avoid taxes and collusion where insurance companies divided up business and only pretended to compete, aka price fixing.
All while AIG's Hank Greenberg was at the NY Fed raising up the young-un, Timmy.
If you were Rahm Emanuel or Timothy Geithner what would make you sweat? Worse than the threat of embarassment or losing office would be the thought that you would be so discredited you could not even hold down a private sector job or that you might face criminal prosecution. I think what Geithner has done is criminal--who is going to prosecute him?
I am sure that Rahm Emanuel and Timothy Geithner have been guaranteed millions of dollars in consultant fees when they leave office.......That seems to be the system that is currently in place to preserve and protect the "Corporate Elite".
I commend Eliot Spitzer for still trying to find the bad guys....Whatever happened to those SEC investigations that were being handled out of the offices at World Trade Center #7?
Emaunuel or Geithner, I'd sweat when I relized that little red dot (lazer scope) was focused between my eyes. Nobody's going to prosecute these criminals. It may be time for a November moment. Lamp posts are just about the right height. The Russian aristocracy learned their lessons the hard way. Perhaps it's time for ours to learn theirs. Tim and Rahm, get ready. Keep fucking us and you'll get yours. The people you believe are your slaves will get their fair slice of your asses.
The internal emails I want to see are Goldman Sachs, the firm that primarilly engineered the crisis by packaging corrupted MBS bonds, selling them, and then shortselling the hell out of the only index used to provide the mandated mark-to-market valuation of those bonds. The very rapid downfall in the valuation of those bonds immediately effected mortgage company balance sheets and hence their levels of debt and credit lines (and those companies were having their stock attacked by massive illegal shortselling that drove their market capitalization into the ground). For most, credit lines were immediately revoked (often by companies affiliated by Sachs or Sachs itself) and margin calls demanded. That killed many mortgage writers like Countrywide, which Sachs, Merrill Lynch, Morgan Stanley, etc., scooped up at pennies on the dollar--which was the plan from the outset. What Sachs and its conspirators didn't count on was their actions causing an implosion of the global credit markets. Yes, the FED was responsible for the housing bubble, but it was Sachs's actions that burst it--actions that were surely premediatated, which could be proven through evidencial discovery.
AIG/Valic has its own set of problems, but it was only a minor player in generating the crisis and is now being set-up as the patsy. The #1 Shark is Goldman Sachs and the other broker-dealers that "managed" to "survive" the crisis.
So beware of having your attention diverted from the "man" behind the cutain as that's exactly what Spitzer and company are trying to do.
Don't be nice to any of the managers at AIG, especially in the derivitives branch. Jim Cramer on the "Mad Money show on Dec 22, 2008 stated that most of the early money that AIG received in the TARP bail-out went to banks in Europe. We would learn later that most of that money was used to pay off credit default swaps. It should be infuriating that so few members of Congress are calling for more investigations. One story that has popped up is that Geithner wasn't aware of any decision to create a cover-up. If that is the case it's a lose-lose situation for him. He was the head of the FED in New York and should have known where approx 80 billion dollars would go. If he knew and is now attempting more cover-up, he should be canned. I would also volunteer Ben Bernanke for a kick out the door and have him share a cell with Bernie Madoff.
where is our "change to belive in"?
release the CHANGE
Scanning over articles I stopped and shuttered seeing "Spitzer". I knew it would be a good article. Oh how I wish this story would finally get out, that they'd be exposed. But what are we to do when the line of protection is the CIA and FBI?
Too few people across America understand this Spitzer's mission. He knows the enemy, he knows how they operate and who is protecting them.
I'm sure this AIG thing is so insane it plays out like fiction. Its got to be mind blowing.
This Progressive, Liberal wants to thank Eliot Spitzer for his amazing tenacity and good works. May you never tire and so many of us sit and wait baited breath for day those who prey upon us are exposed and justice is served on this cartel.
Again, thank you.
I completely agree with you. His tenacity is the cause of his being turned in for paying a prostitute.
Read the 03-11-08 WSJ article on Spitzer and know why he was targeted.
About 6 months later Wall Street begins to unravel.
Let's see. Because of Wall Street's frauds the country went bankrupt causing world-wide economic turmoil, throwing millions out of their homes and causing millions to be unemployed. Then there is Spitzer paying a prostitute. Which one did the most harm?
Well, we know who Wall Street thought was the worser of the two in 03 of 08.
Wall Street knew the attention span of this puritan-yet-sex-craved nation. More's the pity. Spitzer was the guy in the white hat.
It's my understanding that AIG was in trouble for years before they fell/got caught. I don't know if it's true, but I heard that people waited for claims checks for months and months. Rumor was that AIG waited for money to come in before checks were written.
I'd like to add my support for this request.
OK Eliot, you have served your ten minute major for misconduct. It's time for you to hook up with someone like Gregg Palast and start laying bare the crimes of these corporate rats! Seeing that Congress isn't going to do it, a colaboration between you and Mr. Palast would probably be the most in depth investigation the American people could expect into what led to the countries financial meltdown. It's time for somebody to start kicking ass and taking names on behalf of the American people. I hope both of you will consider it!
"If we understand the failure of AIG, we will more fully understand the crisis - what caused it and more importantly how to prevent it from happening again."
Spitzer is of course one of the elites who promotes the fairy tales to the public, to try to confuse us, ultimately to enslave us.
He understands the crisis but he isn't allowed to confirm that to the public, which has access to the truth, but fails to embrace the truth because of its opiate dependence on the elite establishment, a.k.a., Sugar Daddy.
Everyone knows that Darth Viper's winks/nods during 2001 unleashed a speculation bonanza unparalleled in history. Commodities, energy, (un)real estate, and the finance-warez cooked up for no benefit whatsoever to the REAL economy and REAL people, all went ballistic in an absolute regulatory void.
The rightwingers forget about this regulatory void as they try to bury its spectacular destruction. Even though, the void STILL EXISTS TODAY under the left-side-of-extreme-right Demoks. Add amnesia to their many afflictions. But please vote for them again and again and again! Sugar Daddies and Sugar Mommas!
"Spitzer is of course one of the elites who promotes the fairy tales to the public, to try to confuse us, ultimately to enslave us."
Actually, Spitzer is a whistle blower. Give the man some credit.
http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021302783.html
FDR said,
"there are 2 ways of viewing the government's duty,
the 1st sees to it that a favored few are helped and hopes that some of their
prosperity will leak through, sift through, to labor, to the farmer, to the
small business man. That theroy belongs to the party of Torism, and I had hoped
that most of the Tories left this country in 1776."
A more appropriate title might be "Tip of the Scheisseberg".
good to see spitzer boy back in the game. amazing, isn't it, that among all these financial scandals, the folks in new york sent him packing. only in the puritan u.s.a. would such a thing happen. it woud be like cashiering ike before d-day because of kate summerby. republican david vtter, i notice, is still the senator from louisaina, despite his repeated trysts with prostitutes. and ensign still sails the senatorial desert of nevada, throwing hush money as the sands and cacti will allow. and, if you're a known killer, like bush or mcchrystal, people will deem you a fine fella, and slap your back. better a torturer or mad bomber than someone with an outsized libido. we like to grow 'em mean over here in the usa. now, if spitzer had just killed his opponenet in octagonal cage submission fighting.....
Well, the Shapiro crook head of the SEC just answered.
The SEC has announced TODAY that all AIG e-mails are SEALED until 2018.
FUCKING FABULOUS! What a monstrous, in-your-face bunch of assholes!