...... here's the meticulous work and commentary that demonstrates that virtually the entire "secrecy meme" put forth by the Fed, for almost a year, with regard to the AIG bailout is false. Taken in conjunction with the latest facts uncovered by Adams' and his colleagues' work, also herein, it becomes rather obvious that there were other motives for the almost-year-long spin. (You may "fill in the blanks" on that one!)
# # #
http://www.nakedcapitalism.com/2010/01/so-why-is-the-fed-so-desperate-to-keep-maiden-lane-iii-details-secret.html So Why is the Fed So Desperate to Keep Maiden Lane III Details Secret? Yves Smith
Naked Capitalism
January 21, 2010
You will hear much more about this topic (AIG and Fed secrecy) here on Friday
http://www.bloomberg.com/apps/news?pid=20601087&sid=aRexIMpLtIL4&pos=4but Bloomberg reports the lengths to which the Fed has gone to try to keep the details of Maiden Lane III, the entity created to buy drecky CDOs from AIG counterparties who received 100% credit default swap payouts.
Get a load of this, the Fed was arguing that info IN THE PUBLIC DOMAIN should be treated as confidential! The Ministry of Truth in action: After media reports
http://online.wsj.com/article/SB123638394500958141.html that month named some of AIG's counterparties, AIG executives wrote a draft of a letter to the SEC saying that it intended to withdraw its January request for confidential treatment. Later that March, the New York Fed sent edited versions of another request for confidentiality and provided arguments to help AIG make the case. The SEC granted confidential treatment in May of 2009.
This whole affair puts the Fed in a bad light indeed. The article details how the A
IG, pushed by the Fed, made four efforts with the SEC to get information regarding the AIG payouts and Maiden Lane III purchases redacted. AIG seems reluctant, and the SEC, to its credit, did not roll over (although one can argue it in the end conceded too much ground).
And the arguments made by the Fed are rubbish:
Friday, January 22, 2010
Fed Secrecy Claims Bogus, Redacted AIG Bailout Details Already PublicAttempts to investigate have slammed into a wall of secrecy. The Fed is still fighting Freedom of Information Act requests to disclose the beneficiaries of its various emergency rescue programs The central bank has refused to release details about how the banks benefited from the AIG bailout, even taking the impressively circuitous route of getting AIG itself to beg the SEC for permission to strike key information about Maiden Lane III from its regulatory filings.(
http://www.bloomberg.com/...=)
http://www.nakedcapitalism.com/2010/01/fed-secrecy-claims-bogus.htmlmore:
http://www.dailykos.com/storyonly/2010/1/23/829217/-Naked-Capitalism-Guest-Post:-AIG-Bailout-Secrets-Exposed!
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