Geithner’s Fed Made AIG Pay Banks to the Max

[G_j]

http://www.truthdig.com/eartotheground/item/20091028_geithners_fed_ordered_aig_to_overpay_banks/?ln


Geithner’s Fed Made AIG Pay Banks to the Max

Posted on Oct 28, 2009


White House / Pete Souza

That Timothy Geithner must love the big banks he spends all day talking to. Back when he was in charge of things, the Federal Reserve Bank of New York forced AIG to pay off Wall Street tycoons for all those toxic bets, even though the mega-insurer was busy trying to negotiate a better deal.

Goldman Sachs alone got $14 billion that will never be recouped by taxpayers, who shelled out $180 billion to keep AIG from going under.

So, despite dodging his taxes, failing to regulate Wall Street as it destroyed the global economy and worrying more about reckless bankers than cash-strapped taxpayers, Geithner got promoted to run the American economy.

How is it that real unemployment is at 17 percent and this guy still has a job? —PZS

Washington Post:

The Federal Reserve Bank of New York said Tuesday that it had no choice but to instruct American International Group last November to reimburse the full amount of what it owed to big banks on derivatives contracts, a move that ended months of effort by the insurance giant to negotiate lower payments.

Fed officials offered the explanation in a rare response to a media report after Bloomberg News said that the New York Fed, led at the time by then-President Timothy F. Geithner, directed AIG to make the payments after it received a massive government bailout. The officials said AIG lost its leverage in demanding a better deal once the company had been saved from bankruptcy.

Read more..

[Romulox]

1. Love to see even one of the "Thank GAWD it passed!" crowd comment. nt

[Romulox]

10. Kick for comment by any one of DU's self-styled economists...

:shrug:

[Hannah Bell]

13. they think it's great, why would they comment? trust-funders & rentiers

need to make a living too, for chrissake.

[notadmblnd]

2. wall street owns the whitehouse.

IMO it owns the entire government.

[seafan]

3. Obama's tragic error: Allowing Geithner, Summers and Rubin to keep their hands in the till.

Only 24% voters support bailout plan, September 27, 2008


Senate votes on bailout, October 1, 2008


Senate attached bailout plan to Paul Wellstone Mental Health/Addiction Equity Act of 2007, October 2, 2008


Lawmakers say Paulson kept bailout details secret, July 16, 2009


Geithner’s Fed Made AIG Pay Banks to the Max, October 28, 2009



White House / Pete Souza

[Ruby the Liberal]

5. He could start to undo the damage by putting Elizabeth Warren at Treasury

[seafan]

6. If only. IF ONLY. But after brushing off Volcker and Goolsbee, I'm not hopeful.

What is it about DC politics that strips away cogent thinking?


Nevermind.... $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

[Ruby the Liberal]

4. AIG was rounding up agreements for $0.40 on the $1 when Timmeh stepped in

and gave them $1 on the $1.

:grr:

[slipslidingaway]

7. knr nt

[Greyhound]

8. .

[QC]

9. THANK GOD IT PASSED!!!!!!!!11!!

[Greyhound]

12. Translative kick; "Thank God they let me keep some of MY money." n/t

[gratuitous]

11. But look at all we got for that money!

There's this clock that's right two times every day. A chair, but I wouldn't advise you to sit in it. This spring thingy; it's kind of broken. A deck of cards without the aces. Let's see, 500 piece jigsaw puzzle with more than 480 pieces in the box. Videotape of "On Golden Pond," terrific movie. Hmmm . . . Beta. And a life-size cardboard cut out of Roger Moore as James Bond!

[TexasObserver]

14. don't even get me started on this topic

And I don't want to talk about Goldman Sachs of Shit either.