Sunday, January 10, 2010

Alex Jones Tv {Sunday Edition} 1/7: Geithner's Backdoor Deal with AIG & Mobile Naked Street Scanners

Alex goes into the top stories of the past week including a story about mobile naked body scanners for the streets of america and also brain scanners coming to airports in the future. Yes, it's 1984 with a Buck Rodgers twist here in the 21st century Police Grid.

Geithners Fed told AIG to hide backdoor bailout

Homeland Stupidity
January 10, 2010

The Federal Reserve Bank of New York, during its $180 billion bailout of American International Group, Inc., instructed AIG to omit details of its purchase of certain toxic assets from a December 24, 2008, Securities and Exchange Commission filing, according to e-mails between the company and the Fed released Thursday.

Protesters yell at people looking out the windows of an AIG office building during a rally against government bailouts for corporations in April, 2009.

Using bailout money provided by the Fed, AIG paid a number of banks 100 percent of the face value of credit-default swaps, contracts tied to subprime home loans, at a time when other institutions were negotiating deep discounts for the paper. The names of the banks were also omitted from the SEC filing.

The information was finally disclosed in March 2009 after the SEC challenged AIGs filing, prompting lawmakers and analysts to call the transactions a backdoor bailout of the banks. Topping the list of banks which benefited from the backdoor bailout of their toxic paper were Goldman Sachs and Societe Generale SA.

The e-mails, released Thursday by Rep. Darrell Issa (R-Calif.), ranking member of the House Oversight and Government Reform Committee, show the Fed wanted a number of other details about the AIG bailout withheld or their disclosures delayed.

The coverage from Bloomberg News has all the gory details, including a non-denial denial that Treasury Secretary Timothy Geithner, who was then chairman of the New York Fed, had anything to do with the cover-up.

Rep. Barney Frank (D-Mass.) has called the disclosure troubling and plans to hold hearings on the issue, though he publicly maintains full confidence in Geithner.

Posted via email from Wayne's posterous

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