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Alan Grayson Sends Angry Letter To AIG Credit Facility Trust, Demands All AIG Emails Be Made Public

Tyler Durden's picture





 

It had been a little quiet without Alan Grayson these past few months. Too quiet. The Florida Democrat is now back with a bang after sending a letter to the representatives of the AIG Credit Facility Trust demanding that all AIG emails over the past decade be made public, as well as all company models and internal accounting documents. Yet it is the flourish of the narrative, which reminds one of Dan Loeb in his iconoclastic prime that is the centerpiece of the most recent, and every other letter. Where else can you find pearls like: "It is beyond outrageous that this company, which taxpayers capitalized
after Wall Street used it as a slush fund, hides nearly all relevant
facts from its owners, the public.
" We are most enthused by Grayson (and others) finally picking up on a key theme - if you want something analyzed independently and objectively, just open it up to the broader public, and screw all corrupt internal commissions. Crowdsourcing is the only way to get anything done these days. Also, the crowd wonders, is it too late to replace the top two posts in the current administration with Grayson-Kaufman (in alphabetical order)?

 

March 18, 2010

AIG Credit Facility Trust
Trustee Peter A. Langerman
Trustee Chester B. Feldberg
Trustee Jill M. Considine

Arnold & Porter LLP
399 Park Avenue
New York, NY 10022

Dear Mr. Langerman, Mr. Feldberg and Ms. Considine,

I write to request that you turn over to this office, and the public, e-mails backed up on AIG’s servers, including internal accounting documents and financial models developed by the company in the last decade.  The public owns AIG.  We bought it, for an initial down payment of $182 billion.  You are the representatives of the public, through your positions as the three trustees of the AIG Credit Facility Trust.

The public is unhappy with the purchase.  In March, 2009, a poll found that 82% of the public wanted bonuses to AIG employees returned.  This didn’t happen.  We do not  know who is responsible for the company’s collapse, or whether they are working now at other banks or for the Federal government.  We do not know if they got bonuses, if they were committing fraud, whether there were kickbacks from counterparties, or if there was any significant restraining role played by the regulatory community.  We cannot separate the bad decision-makers from innocent employees, because we simply do not know what went on.  You can address this problem, by releasing to us and on the internet, with reasonable discretion, all or sustainably all of the emails and documents that describe the web of relationships and practices behind AIG’s failed business.

Last year, I asked former AIG CEO Ed Liddy to give me the names of the people who destroyed AIG and cost taxpayers tens of billions of dollars.  He refused.  I asked the Government Accountability Office (GAO) to look into the matter.  The GAO wrote that it didn’t have the authority to do an audit.  I requested that the Special Inspector General of TARP look into the problem.  I was told that the problem is too complicated.

The ball is in your court.  As experienced fraud investigators Bill Black, Eliot Spitzer, and Frank Portnoy wrote in December, 2009:

Once the documents are available for everyone to inspect, a thousand journalistic flowers can bloom, as reporters, victims and angry citizens have a chance to piece together the story. In past cases of financial fraud — from the complex swaps that Bankers Trust sold to Procter & Gamble in the early 1990s to the I.P.O. kickback schemes of the late 1990s to the fall of Enron — e-mail messages and internal documents became the central exhibits in our collective understanding of what happened, and why.

On Wall Street, winners can win, but losers must lose.  This did not happen with AIG.  AIG itself, AIG employees, and AIG counterparties were bailed out.  It is beyond outrageous that this company, which taxpayers capitalized after Wall Street used it as a slush fund, hides nearly all relevant facts from its owners, the public.  Should this information be released, it is likely that the value of AIG’s remaining businesses will be unchanged.   In any event, the public and public markets will benefit dramatically from transparency, because reliable information is the cornerstone of effective markets.

I ask that you exercise prudent judgment as stewards of the public interest, and direct the release of all or substantially all emails and financial records into the public domain.

Sincerely,
                           
Alan Grayson
Member of Congress

 


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Fri, 03/19/2010 - 09:07 | Link to Comment E pluribus unum
E pluribus unum's picture

If we only had 434 more Graysons in the House then this country might just survive.

Fri, 03/19/2010 - 11:44 | Link to Comment Votewithabullet
Votewithabullet's picture

ay theres the rub.

Fri, 03/19/2010 - 14:41 | Link to Comment Bob
Bob's picture

I'd like to see Grayson and Kaufman publicising contacts and inquiries made of FBI personnel and Federal Prosecutors for investigation and action. 

That would keep them in the news and up the ante, imo.

Fri, 03/19/2010 - 09:10 | Link to Comment Racer
Racer's picture

Well done that man...

 

IF only we had more to bring the banksters and the rest to justice they deserve

Fri, 03/19/2010 - 12:40 | Link to Comment Careless Whisper
Careless Whisper's picture

kickbacks from counterparties

little appetizer snuck in there

Fri, 03/19/2010 - 09:11 | Link to Comment TraderMark
TraderMark's picture

The Daily Show clip: "In Dodd We Trust"

http://www.fundmymutualfund.com/2010/03/video-daily-show-in-dodd-we-trust.html

Last 4-5 minutes just hilarious as Jon turns himself into a corporation and describes what he can get away with in American society, versus an individual.  The stifled laughter from the audience indicates the vast majority remain clueless, even the "liberal intellectuals" who would attend such a show.

Fri, 03/19/2010 - 13:03 | Link to Comment Bob
Bob's picture

Great video!!!  I'm not sure the stifled laughter indicates that the audience wasn't following the argument.  Perhaps it just was too real to be gut-busting funny. 

Fri, 03/19/2010 - 14:22 | Link to Comment Big Red
Big Red's picture

Ah, but when the Mets logo appeared with the reference to the team, they could then laugh AND applaud...

 

Fri, 03/19/2010 - 14:56 | Link to Comment Bob
Bob's picture

Easily reconized as a familiar joke.  And, in context, a tension-breaker.

Have you seen no "liberal intellectuals" around ZH? 

Really, do you think Stewart is doing shadow theater strictly for his own amusement . . . or that of the risque portion of the political "right" that wouldn't simply write him off on the "principled" grounds that he's a famous liberal?

 

Fri, 03/19/2010 - 09:23 | Link to Comment Tense INDIAN
Tense INDIAN's picture

i love ALAN GRAYSONS videos on YOUTUBE....i m a huge FAN....

 

remember still the video where the BALDIE did not know where 1.2 TRILLION dollars went ...!!!!!

Fri, 03/19/2010 - 09:24 | Link to Comment Dirtt
Dirtt's picture

Sorry. Grayson is a freakin blowhard.  Sounds more like they didn't offer him a big enough bribe.  Don't buy into this partisan clown.

 

Am I happy he is throwing AIG to the crowds? Yes. But let's not get out the "annointing oil" just yet.

Fri, 03/19/2010 - 09:24 | Link to Comment zice
zice's picture

Sheep in wolves clothing.

Fri, 03/19/2010 - 11:25 | Link to Comment Shrimp Head
Shrimp Head's picture

Agreed. HEHE

Fri, 03/19/2010 - 09:31 | Link to Comment aint no fortuna...
aint no fortunate son's picture

I think I hear the sound of raucous laughter at 399 Park Avenue as milk shoots out the noses of the 3 stooges.

Fri, 03/19/2010 - 09:32 | Link to Comment demsco
demsco's picture

Grayson is an idiot though. Not an idiot as in he is stupid an idiot as in he doesn't get it. He actually thinks Medicare for all is a good idea. I actually agree with him, in an ideal world where it rains gum drops and one wakes up with gold bars under their pillows every morning. However, in the real world, the US has real funding issues and Medicare is a failed system, not failed in acceptance, but in how it operates. He is the portrait of why we should not have lawyers in Washington DC. All he is doing here is tapping populist outrage.

Fri, 03/19/2010 - 11:28 | Link to Comment Marvin_M
Marvin_M's picture

One finds it very interesting that the "populist outrage" that Mr. Grayson (in his own admirably disrespectful way) decries is in defense of simple human rights and dignity: defense of the people from corruption and systematic sacking by marauding oligarchs.  How else to deal with these tyrants but to get back in their faces with a vengeance?  Perhaps the revolutionary French hit on the best answer by cutting off the heads of these snakes.

Where is the outrage regarding the bleeding off and wholesale waste of nearly half of all tax receipts to fund a bloated, socialist military complex and police state?  Yes the US has a funding problem but the problem centers on how to keep funding imperialist establishments and the top 1% in the face of increasingly pesky demands of whining masses who are fighting a losing battle to survive.

Fri, 03/19/2010 - 12:08 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"Where is the outrage regarding the bleeding off and wholesale waste of nearly half of all tax receipts to fund a bloated, socialist military complex and police state?"

I've talked pretty extensively about this subject, with more to come. But if I were to condense it down to a few words, the so called elevator 30 second blurb, it would be even shorter than that.

Where is the outrage? The TV hasn't told the nation to be outraged yet. It's coming, thou the public will be told to be outraged about the next straw man red herring they decide to manufacture.

Fri, 03/19/2010 - 15:32 | Link to Comment Slewburger
Slewburger's picture

CD,

Are you an Alan Watt fan? If you're not then I suspect he's your long lost brother.

Fri, 03/19/2010 - 19:09 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

A few weeks back someone suggested I look at Alan Watt. I spent 30 minutes looking at some of his work but I haven't had time yet to look more closely so I will reserve judgement. But he doesn't look like anything momma might be responsible for. :>)

Sat, 03/20/2010 - 09:13 | Link to Comment Marvin_M
Marvin_M's picture

Point understood CD.  Mr. Grayson's antics are getting him some TV time and I think people are liking what he does.  Efforts to paint him as a lightweight bufoon are falling flat amongst protectors of the status quo on both sides of the aisle.  Someone once said "I like a man who has the courage to stand up and say what I think".  For those who see what Alan Grayson is trying to do and also see who is pushing back at him, the picture is clear.  He sees the "funding problem" for sure.

To wit:

http://www.huffingtonpost.com/2010/03/19/grayson-pushes-public-opt_n_506...

Fri, 03/19/2010 - 13:49 | Link to Comment dcb
dcb's picture

No,

grayson  believes that those who want should be able to sign up for medicare. (they would pay in like it is an unsurance, pay for their costs) the adminstrative set up is in place. Instead our prorgram mandatees you buy overpriced health insurance from for profit companies. He's saying, there should be a non profit alternative for those who want it.

 

Of course this is being fought, because it would put the for profits out of business. Or they would have to provide better service and less profits. Hence some real reform of the system. The UK has private systems. great we want healthcare profits being turned over to stockholders who have an unmtimate goal of increasing shareholder profits by any means. Great idea (LOL)

Fri, 03/19/2010 - 09:52 | Link to Comment Sweetness
Sweetness's picture

Grayson's political ideologies will only hasten the demise of the country, but his criticism of AIG is well deserved.  Is he also criticizing Timmy about making them whole?

His calling that lady a K-street whore was classic, though.  People can't handle the truth.

 

 

Fri, 03/19/2010 - 10:06 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

"On Wall Street, winners can win, but losers must lose." 

Not anymore buddy. The Ponzi has a firm grip on the jugular of the nation/world and it will squeeze the life out of it if the Ponzi doesn't get what it wants. Not only are the banks to-big-to-fail but the Ponzi is as well.

This situation reminds me of a movie I've forgotten the name of, where the protagonist has his fingers pinched on a exposed and ruptured artery of a severely wounded bad guy. And he wants answers to his questions. Now! Every time the bad guy hesitates answering, the fingers are released and the Yellowstone geyser of blood begins.

This quickly focuses the attention of the bad guy, who wisely decides to promptly answer any and all queries. Of course, once they are all answered, the fingers are released and the man is left to fend for himself, blood gushing and panic spreading. The ultimate in extortion schemes, worse then being held by the balls.

Sound familiar?

Fri, 03/19/2010 - 10:36 | Link to Comment trav7777
trav7777's picture

In this world, there are two kinds of people, my friend...those with loaded guns and those who dig.  We dig.

Fri, 03/19/2010 - 10:24 | Link to Comment Postal
Postal's picture

This is not the email you're looking for. This email is free to move along.

Fri, 03/19/2010 - 10:25 | Link to Comment Gimp
Gimp's picture

Grayson is the only Congressman asking the tough questions of the banksta cartel holding us all hostage. Of course because of this his enemies are trying to paint him as a looney, luckily he has made money and does not have to lick the boots of the money men like his peers.

Funny how these companies take public money but act like private institutions.

 

Fri, 03/19/2010 - 10:34 | Link to Comment trav7777
trav7777's picture

OMG...an "Angry Letter"?!?!?!?!?   Wow, this guy is BAWLZY

What's next, harsh language?  Hide the women and children

Fri, 03/19/2010 - 11:05 | Link to Comment Fix It Again Timmy
Fix It Again Timmy's picture

Since the Amerikan corporate world seems to be enamored with exporting manufacturing to China, let's go them one better and demand that investigating and prosecuting financial fraud also be exported to China - I'm afraid all the Chinese rope manufacturing plants just wouldn't be able to keep up with the demand.  5,000 years of managing a civilization certainly teaches you how to effectively get results when they are truly needed.

Fri, 03/19/2010 - 12:02 | Link to Comment excellent
excellent's picture

The final solution is obvious. Put all of the world's assets on my balance sheet, I'll take a 100 million/year paycheck (what a bargain, if you pay me less then no one else would ever consider doing such a hard job for such a meager wage) for managing them, and I'll have the Fed buy my assets month after month. Just don't go looking for me once the Fed has to offload all of those assets.

 

Also, it's pretty embarassing to have a refi ad on the left column, hehe.

Fri, 03/19/2010 - 12:43 | Link to Comment Bob
Bob's picture

Crowdsourcing is the only way to get anything done these days.

The simple truth. 

Fri, 03/19/2010 - 14:10 | Link to Comment anonnn
anonnn's picture

re: emails and side-letters...

"As with the phony reinsurance contracts that AIG and other insurers wrote for decades, when AIG wrote hundreds of billions of dollars in CDS contracts, neither AIG nor the counterparties believed that the CDS would ever be paid. Indeed, one source with personal knowledge of the matter suggests that there may be emails and actual side letters between AIG and its counterparties that could prove conclusively that AIG never intended to pay out on any of its CDS contracts."

from Chris Whalen's The Institutional Risk Analyst via Ilargi at TheAlternateEarth April 2009

Wed, 04/14/2010 - 08:21 | Link to Comment mark456
mark456's picture

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