Geithner-led Federal Reserve Bank pressed AIG to Withhold Swap Info from Public

[Amerigo Vespucci]

Run time: 04:55 https://www.youtube.com/watch?v=BBshsF-a-T4   Posted on YouTube: January 07, 2010 By YouTube Member: Views on YouTube: 0   Posted on DU: January 09, 2010 By DU Member: Amerigo Vespucci Views on DU: 832

 

WASHINGTON - The Federal Reserve Bank of New York (then led by Geithner) pressed American International Group Inc. to withhold from the public the details of controversial deals that funneled billions in bailout money to Goldman Sachs and other banks.

E-mails show lawyers representing the New York Fed asked AIG to remove the information from a draft financial disclosure. Treasury Secretary Timothy Geithner was president of the New York Fed at the time.

The deals were part of a massive rescue effort at the peak of the financial crisis.

Lawmakers and others have accused Geithner's Fed of overpaying banks, including Goldman and Deutsche Bank, to cancel deals with AIG.

The New York Fed says forcing the banks to take losses or disclosing more information could have worsened the crisis.

Copyright MSNBC 2010

[Tutankhamun]

1. I wonder if anyone will still try to criticize those who call for an investigation of Geithner.

(Anyone outside the administration and its close allies, that is.)

[pjt7]

2. I believe most americans realize the crime of giving

these failed companies, more money than they deserved & trying to cover it up.

It's complex for the avg. american, but they now understand robbery.

[Aristophrenia]

3. Merely following orders -

This has been tried and tested as a defense - the idea of covering up the details of the deal being a "low level" initiative is beyond the pale.

[Tutankhamun]

4. BushCo and the Repubs used that lame excuse over and over and over for 8 years.

Abu Ghraib, outing Valerie Wilson, politicizing the justice department, and on and on. "Some kid, some rookie, some intern always acting alone."

Come to think of it, they'll never stop trotting out that tired old excuse for an excuse.

Lately, the excuse may have morphed: "That crazy Yemen kid with the underwear bomb, we knew nothing about him and he definitely acted alone." This story may well be just the "crazy lone nut kid" excuse with a small twist that places him in the enemy camp rather than inside the Republican party.

[democracy1st]

5. K & R