New York Fed documents reveal more detail about AIG bailout

[alp227]

Source: Brady Dennis, The Washington Post

On the frenzied day in September 2008 when the federal government bailed out insurance giant American International Group, Timothy F. Geithner logged dozens of calls with top Wall Street executives, Washington regulators, political leaders and even investor Warren Buffett.

At the time, the Treasury secretary was head of the Federal Reserve Bank of New York, which played a lead role in organizing AIG's rescue. His call logs, obtained by The Washington Post, are among 250,000 pages of documents the New York Fed recently turned over in response to a subpoena from the chairman of the House Committee on Oversight and Government Reform.

Records show that Geithner participated in nearly 70 calls between 7:45 a.m. and 10 p.m. on Tuesday, Sept. 16,le as officials worked to stabilize AIG -- first through private loans and finally through public assistance. They feared the company's collapse might trigger other failures and endanger the financial system.

Geithner spoke most often to Federal Reserve Chairman Ben S. Bernanke and then-Treasury Secretary Henry M. Paulson Jr., as well as with AIG chief executive Robert Willumstad. He also shared numerous calls with top financial executives, including Lloyd Blankfein of Goldman Sachs, Jamie Dimon of J.P. Morgan Chase and Vikram Pandit of Citigroup.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/01/23/AR2010012302832.html?wprss=rss_politics

[JDPriestly]

1. I think that Geithner's days in the Obama administration are numbered.

He is becoming too much of an embarrassment. Pleasant, polite guy, but a very dark and troubled past.

We need someone who is not so close to the financial sector at this time. Secretary of the Treasury is usually very pro-business. But at this time we need a Main Street type. The ideal would be someone with his or her consciousness anchored in both Main and Wall Streets. Does such a person exist? Anybody know anyone. I always think of Elizabeth Warren. She would be my first choice, but I know there are others out there.

[Quantess]

2. Too late to recommend.

[kpete]

3. SEC mulled national security status for AIG details

Source: reuters

SEC mulled national security status for AIG details
Matthew Goldstein
NEW YORK
Sun Jan 24, 2010 3:04pm EST


NEW YORK (Reuters) - U.S. securities regulators originally treated the New York Federal Reserve's bid to keep secret many of the details of the American International Group bailout like a request to protect matters of national security, according to emails obtained by Reuters.

The request to keep the details secret were made by the New York Federal Reserve -- a regulator that helped orchestrate the bailout -- and by the giant insurer itself, according to the emails.

The emails from early last year reveal that officials at the New York Fed were only comfortable with AIG submitting a critical bailout-related document to the U.S. Securities and Exchange Commission after getting assurances from the regulatory agency that "special security procedures" would be used to handle the document.

The SEC, according to an email sent by a New York Fed lawyer on January 13, 2009, agreed to limit the number of SEC employees who would review the document to just two and keep the document locked in a safe while the SEC considered AIG's confidentiality request.





Read more: http://www.reuters.com/article/idUSTRE60N1S220100124

[Solly Mack]

4. k/r

[mbperrin]

5. Sorry bastards! None of my business where my $162 billion went, eh?

nt

[EmeraldCityGrl]

6. More Toxic Derivatives

A Federal Agency in our Government, the 0ffice of the Comptroller of the Currency, 0CC, issues a quarterly Report that has the following info: 
Update to 3rd Quarter 2009


1 JPM $79Trillion in Toxic Derivatives – Down $2 Trillion

2 BofA $75Trillion – Down $3 Trillion

3 G0LDMAN $50Trillion – Up $2 Trillion

4 M0RGAN $42Trillion – Up $3 Trillion

5 C1T1GROUP $34.5Trillion – Up $2.5 Trillion



http://www.occ.gov/ftp/release/2009-161a.pdf


It is on page 23

The accumulation of toxic derivatives is continuing. Yet, they tell us they will not
reveal documents until 2018 for security reasons! This is an ongoing crisis
and something needs to be done now!

[jotsy]

7. Isn't this the agency that always sides with the banks

as a 'friend' of the court in legal disputes? Who is it that they are supposed to be working for, if their job is ensuring the value of the currency; not sure the exact words are right, I think that's the jist, but certainly not just of it. Would appreciate any clarification offered, tyvm.

[EmeraldCityGrl]

8. Are they?

That I don't know, but given they operate under the Comptroller of the US who regulates all National
banks, is privy to all investments and holdings, I could see them in the capacity you describe. I'm
accessing information they provided and have alot of questions as to how all of this took place when this
agency has total access to all this information. Given that they're the ones responsible for regulating all
of this, if they appear to be "friends" of the court it's probably to cover their own asses.