House subpoenas AIG documents from NY Fed, Geithner

[kpete]

Source: AFP

House subpoenas AIG documents from NY Fed, Geithner

(AFP) – 2 hours ago

WASHINGTON — A congressional panel Wednesday subpoenaed documents on the US bailout of insurance giant AIG in 2008, including from Timothy Geithner, the former New York Fed chief and current Treasury secretary.

Representative Edolphus Towns said his House Oversight and Government Reform Committee was seeking information on payments made to AIG counterparties -- major global banks including Goldman Sachs, Morgan Stanley, Barclays, Bank of America, Deutsche Bank, and Societe Generale.

The panel seeks emails, phone logs and meeting notes from the New York Federal Reserve and Geithner, among others, on the discussions held ahead of the bailout decision.

"Questions remain surrounding AIG's credit default swap counterparties and why these companies received full compensation, when the best they could have hoped for in a bankruptcy proceeding was perhaps 30 or 40 cents on the dollar," the panel said in a statement.

Read more: http://www.google.com/hostednews/afp/article/ALeqM5g16tU1vSOIjUa8ucQU0WzhiWkxJg

[seafan]

1. Top 3 recipients, in no particular order: Goldman Sachs; Deutsche Bank; Societe Generale

.....

The Fed provided a loan of 85 billion dollars to AIG in September 2008 in what would be the first portion of a bailout worth some 180 billion dollars.
Because AIG used the funds to reimburse banks holding the distressed mortgage securities, some have called the move a "backdoor bailout" of those firms including Goldman Sachs and a number of foreign banks.

The details of the counterparty payments were initially kept secret but the recipients were disclosed in March 2009.

The 22.4 billion dollars payments were made to a number of firms. France's Societe Generale, Germany's Deutsche Bank and New York-based investment bank Goldman Sachs were the top three recipients.

Interesting how the exact 1-2-3 ranking is muddied in this article. I would wager that "Gold Sacks" was Number One.



Finally, some action against the vampire squid.

[bemildred]

2. Oh good.

:popcorn::popcorn:

[PSPS]

3. We really need a modern-day Ferdinand Pecora

[Po_d Mainiac]

4. Dr Blankenstein (Goldman Sachs) went on the record

Stating they were never asked to take a haircut on AIG payouts.......AIG/NYFRB says they were not given an option by the banksters and had to pay-in-full......Turbo Tim says he was outa the loop......

There is a 100% chance that someone is lying. Maybe they all are. Capone went down for tax evasion, won't it be ironic that perjury takes down a bankster or four

BRING FORTH :FRSP: FOR ALL

[defendandprotect]

5. k