Wednesday, March 3, 2010

Secret AIG Document Shows Goldman Sachs Minted Most Toxic CDOs

This document shows that Goldman Sachs made deals that destroyed AIG and was "secretly" bailed out by the Fed under the direction of Geithner. This is worse than Geithner's backdoor bailout to Wall Street because it shows extreme favoritism to Goldman Sachs. He of course will not be punished because he is a team player for the banks, and they are in control. At this point I have to wonder if the only thing keeping Goldman afloat is printed Federal Reserve cash. Who actually wants to do business with these criminals?

    Bloomberg -

    When a congressional panel convened a hearing on the government rescue of American International Group Inc. in January, the public scolding of Treasury Secretary Timothy F. Geithner got the most attention.

    Lawmakers said the former head of the New York Federal Reserve Bank had presided over a backdoor bailout of Wall Street firms and a coverup. Geithner countered that he had acted properly to avert the collapse of the financial system.

    A potentially more important development slipped by with less notice, Bloomberg Markets reports in its April issue. Representative Darrell Issa, the ranking Republican on the House Committee on Oversight and Government Reform, placed into the hearing record a five-page document itemizing the mortgage securities on which banks such as Goldman Sachs Group Inc. and Societe Generale SA had bought $62.1 billion in credit-default swaps from AIG.

    These were the deals that pushed the insurer to the brink of insolvency -- and were eventually paid in full at taxpayer expense. The New York Fed, which secretly engineered the bailout, prevented the full publication of the document for more than a year, even when AIG wanted it released.

Read it all.