"A lot of people think that the president of the NY Fed works for the government..."

[Dover]

...As Representative Marcy Kaptur told Geithner at the (AIG) hearing: “A lot of people think that the president of the New York Fed works for the U.S. government. But in fact you work for the private banks that elected you.”

And yet the New York Fed played an integral role in the government’s bailout of banks, often receiving surprisingly free rein to act as it saw fit.

Consider AIG. Let’s take Geithner at his word that a failure to resolve the insurer’s default swaps would have led to financial Armageddon. Given the stakes, you might think Geithner would have coordinated actions with then-Treasury Secretary Henry Paulson. Yet Paulson testified that he wasn’t in the loop.

“I had no involvement at all, in the payment to the counterparties, no involvement whatsoever,” Paulson said.

Fed Chairman Bernanke also wasn’t involved. In a written response to questions from Representative Darrell Issa, Bernanke said he “was not directly involved in the negotiations” with AIG’s counterparty banks.

You have to wonder then who really was in charge of our nation’s financial future if AIG posed as grave a threat as Geithner claimed...


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Read the whole article here. Eye opening!

Secret Banking Cabal Emerges From AIG Shadows: David Reilly (Bloomberg)

http://bx.businessweek.com/us-economy/view?url=http%3A%2F%2Fc.moreover.com%2Fclick%2Fhere.pl%3Fr2506254390%26f%3D9791