Judge Napolitano explains the situation very simply and very succinctly.
Details from Bloomberg:
Geithner’s Fed Told AIG to Limit Swaps Disclosure (Update2)
Jan. 7 (Bloomberg) — The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.
AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.
The New York Fed took over negotiations between AIG and the banks in November 2008 as losses on the swaps, which were contracts tied to subprime home loans, threatened to swamp the insurer weeks after its taxpayer-funded rescue. The regulator decided that Goldman Sachs and more than a dozen banks would be fully repaid for $62.1 billion of the swaps, prompting lawmakers to call the AIG rescue a “backdoor bailout” of financial firms.
“It appears that the New York Fed deliberately pressured AIG to restrict and delay the disclosure of important information,” said Issa, a California Republican. Taxpayers “deserve full and complete disclosure under our nation’s securities laws, not the withholding of politically inconvenient information.”
Geithner was “officially recused from matters dealing with specific companies” at the New York Fed after his nomination for Treasury Secretary on Nov. 24, 2008, and “began to insulate himself weeks earlier in anticipation of his nomination,” said Meg Reilly, a Treasury spokeswoman. Geithner, who was tapped by President Barack Obama, took the Treasury job January, 2009. Mark Herr, a spokesman for New York-based AIG, declined to comment.
Issa requested the e-mails from AIG Chief Executive Officer Robert Benmosche in October after Bloomberg News reported that the New York Fed ordered the crippled insurer not to negotiate for discounts in settling the swaps. The decision to pay the banks in full may have cost AIG, and thus taxpayers, at least $13 billion, based on the discount the insurer was seeking.
The e-mail exchanges between AIG and the New York Fed over the insurer’s disclosure of the transactions show that the regulator pressed the company to keep details out of the public eye. Issa’s comments add to criticism from Republican lawmakers, including Senator Chuck Grassley of Iowa and Representative Roy Blunt of Missouri, who wrote letters in the past two months demanding information from Geithner, 48, about the costs of the AIG bailout.
Go over and read the rest.
Wow! Just Wow! One more thing for Obamas plate.
A question: do you think this is linked to the INTERPOL interest inside the US, and, Obama’s role in signing the EO? Did Obama get immunity for himself or Geithner in exchange for the EO?
Diamond, remember when Davis Polk and Wardwell, LLP was haunting your site? Snooping around, tring to find out how much you knew, and what your readers were saying about it? You had them stirred up then, I’ll bet they’re visiting frequently now.
Timmy will not be charged with his crimes. It will be another save by his friend Obama like he got over the IRS crimes. He knows where too many of the bodies are buried and Obama is going to get desperate before too much longer.
What we are seeing is the peeling of the onion, and the nearer we get to the meat of the onion bulb the stronger the poison of the layers to our senses and the stench to our awareness. We will all be crying and it will take more than a piece of bread on the tip of the knife to absorb the potent stench.
PPS – Don’t forget Timmy is also a member of the CFR, the Trilateralist Commisssion and the Bilderberg Group. Don’t you think he’ll be protected?