Darrell Issa On AIG: "The American People Deserve Somebody's Head On A Platter"

Tyler Durden's picture

Darrell Issa asks the key question: "If not Tim Geithner then who? What's wrong with a system that the New York Fed can hand out your tax dollars in these quantities and not think it is particularly important to make sure it's the right amount."

And more questions:

"Between November 24 and the time that he became Secretary of the Treasury, Tim Geithner purported to be absolutely engaged in all aspects of saving America. He didn't go to a monastery for those days. We still have a right to know what Tim Geithner knew and when he knew it and why didn't he know that we were paying more than double the amount that was commercially reasonable... Certainly Barney Frank doesn't seem to be interested enough in getting to the bottom of that. More importantly, in the future does the Fed have a right to pay more than a mark to market, simply on the strength of their own decisions and then keep it secretive?"

Finally someone is asking the questions which all other politicians, regulators (Mary Schapiro, how are you today?), and everyone else captured by Wall Street's indulgences never will.


As for our ideas of who may very well have been the proper party to question, here is one:


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Handle with care's picture

If Geithner doesn't lose his job over this then the rule of law is over.


Its a very clear CRIME to withhold material information from public filings.  Advising a public company to break the law may not be a crime, but running a regulatory organisation that has now been proven to encourage the firms it regulates to break the law is a clear failure by the leadership of that organisation, even if he didn't sign the memo himself.


There are only three alternatives here:

1.  Geithner approved the advice to act illegally

2.  His staff felt that they knew his opinions well enough not to need to seek approval

3.  His staff were running amok as Geithner was so incompetent he had no control or authority


In all 3 cases Geithner can not continue as Treasury Secretary

Number 156's picture

If Geithner doesn't lose his job over this then the rule of law is over.


It wont matter. They will replace him with another criminal to keep the same games afloat just as they have done with the other replacements. Remember Paulson?

And dont forget Edward Liddy, Robert Benmosche... Look at the history of these clowns.

MarketTruth's picture

The rule of law has been over long ago. The US President closed that barn door when he insulted hardworking people (teachers and other retirement funds) who had invested in US automakers. Remember when oBOMBa slandered investors on national TV for daring to ask for what they were legally owed during bankruptcy. Well, now you can either choose to participate in this fraud or remove all funds and hold your value in things like gold/silver/etc.

If you choose to play this new game, remember nothing is 'illegal', no one goes to jail and let fraud by the banksters be your guide to investing. If you want to be an honest person, then invest in honest 'money' (gold, etc).

SWRichmond's picture

You are right.  Capital flees corruption.

Anonymous's picture


Citizens of the US will only be bent over again and again and again while the chosen favorites (investment banks, and the Fed itself) continue to loot, lie, cheat and steal.

Don't like it? Do something about it besides writing "mean emails." Don't shop at ANY CORPORATION that is publicly traded. Yep, that is gook-mart, McDonalds, you name it.

History will judge this as the largest bank heist in history.

The rich stole everything from the middle class, and thanks to Obamba, the poor took everything else the middle class had.

Job? What is that!

Bill - Yes That Bill's picture

"If Geithner doesn't lose his job over this then the rule of law is over."

Then the Rule of Law is over.


Hey... reality never lives up to ideal... but America 2010 is in a whole new place (and not for the better) than we've been in before.

Oh, sure, you can go back to the ink drying on the last signature on the Constitution and come up with multiple examples of America "off course," but we've reached a new modern "peacetime" low.

"They" (meaning those in power) are no longer even PRETENDING that the Rule of Law matters.

On a happier note... I've recently noted a bit of "single malt scotch deflation."




Ripped Chunk's picture

When the rule of law is over, the formation of government is most likely:


A. A Republic ruled by laws

B. A Fascist regime

C. Anrchy

D. None of the above 

DaveyJones's picture

"Certainly Barney Frank doesn't seem to be interested enough in getting to the bottom".....cause he already lives there. 

Assetman's picture


Thank you MA voters, for electing such a great guy over and over and over again...

Gilgamesh's picture

When I read that part, I thought "and that is a guy who is normally quite interested in getting to bottoms."

SV's picture

Aw, snap - we're experiencing the same wavelength of thought there...

You were posting at the same time!

SV's picture

"Interested enough in getting to the bottom",

Only when it serves him.  Just ask Gobie!


(sorry, couldn't resist - snark)

Anonymous's picture

Oh what a low blow ;)

john_connor's picture

While the AIG fiasco is important, the FNMA/FRE juggernaut continues to suck the life out of America.

Now THAT story needs a witch hunt.


BTW, support Scott Jacobs in the Massachusetts special senatorial election.  This could be a surpising end to the supermajority:



virgilcaine's picture

Geithner is just the Head the rest of the Snake is GS.  Chop head off it grows another.

& Other reptiles , Pimmco, JPM, BAC.


Congress gave paulson the Blank check and Now over  a Year later are raising

the issue! 


Its all dog and pony show, Fraud lives.


Its like a bank teller yelling Weve been Robbed!  2 Years after the Robbers left... the MONEY IS GONE.  ( & the Teller, Branch Mgr, Guard and Robbers are all working together)

Careless Whisper's picture

the whole purpose of the Fed is to benefit the big banks. it's a banking cartel, plain and simple.

Anonymous's picture

and it's working beautifully for the fedsters.

from minyanville this am...the federal reserve made record profits of $45 billion in 2009 because of its unconventional methods to prop up the economy created a windfall. (WPO)

just think how happy they are. why change anything? criticize as we may, their illegal actions making THEM a fortune

Anonymous's picture

It appears we will get "answers." In 2018.

Assetman's picture

Perhaps the "Change You Can Beleive In" administration needs to create an Office of Transparency and Accountability.

You know, so someone can manage that process a little better.

deadhead's picture

the nigerian bomber's underpants were more transparent than the Obama administration.....

docj's picture

Complete with an accountable-only-to-Barack "Transparency Czar", of course.

Anonymous's picture

How 'bout some clawback on the cash? Timmays's head ain't worth $14B

Anonymous's picture

Fed not looking so chalky after yesterday's oral arguments in Bloomberg FOIA appeal:


Arguments went for 1 3/4 hours? Vast majority of appeals see 20-30 min. per side (if anything).

deadhead's picture

thanks for the link 191067....

worthy of a read folks, perhaps a splash on the main page of zh.....

Anonymous's picture

They deserve several "heads" on a platter RICO style in front of a Judge. Read them their Miranda rights starting with this one.


Judging from his red faced testimony, he's already roasting.

Cursive's picture

"The American People Deserve Somebody's Head On A Platter"

I think it will eventually come down to this, at least figuratively.  Can you imagine the uprising once SS payments are reduced or suspended?  Hell hath no fury like a pensioner scorned.

Miles Kendig's picture

They already have been.  Haven't you kept up with the value of the $?

Anonymous's picture

"...and not think it is particularly important to make sure it's the right amount."

I wasn't aware that there was a right amount. Just keep forking it over and I'll let you know when it's the right amount, and don't stop until I tell you to stop.

As for Barney Frank I was under the impression that there wasn't a prick out there that he didn't want to get to the bottom of, oops dangling participle, hope ole Barney doesn't see it and get to the bottom of it.

pros's picture

The AIG insurance transactions with GS was a fraud ab initio because AIG did not have adequate financial capacity when they signed the contracts with GS; thus the contracts are void.

The contracts were a form of fraudulent conveyance-the transactions can be placed in a constructive trust and the obligation and losses transferred back to GS under long-standing and accepted legal principles governing such transactions.

ArkansasAngie's picture

It's his secretary that I want to hear from.

I would NOT believe a word out of Geithner's mouth.  Dancing on "is" isn't my cup of tea.

Now ... is the time to start bringing in the folks who did what they were told to do by Geithner and company.

AnonymousMonetarist's picture


Wiki: During the 1970s, Issa and his brother were twice charged with auto theft, once for a Maserati sports car in 1972 and for a Mercedes Benz  sedan in 1979. He has also been convicted for possession of an unregistered gun. 

Issa made his fortune through his company, Directed Electronics Incorporated, that is most famous for its flagship product, the "Viper" car alarm. It bears one notable siren that is a recording of Issa's voice, "please step away from the car." As of 2004 , Directed Electronics, was North America's largest aftermarket  automotive electronics manufacturer. Issa divested all personal interest in Directed Electronics after being elected to public office, but is the richest member of the House and the second richest in all of the 111th Congress.


Jim B's picture

I guess 100 cents on the dollar is fine then????

AnonymousMonetarist's picture

Nah just sayin' ...takes a thief.

Leverage is a dirty business.

Ripped Chunk's picture

"but is the richest member of the House and the second richest in all of the 111th Congress"

And therefore needs to step down this week.

The "Viper" alarm. Piece of crap.

myshadow's picture

It looks like they have a muzzle on this till 2018.


"NEW YORK, Jan 11 (Reuters) - It could take until November 2018 to get the full story behind the U.S. bailout of insurance giant American International Group (AIG.N) because of an action taken last year by the Securities and Exchange Commission.


In May, the SEC approved a request by AIG to keep secret an exhibit to a year-old regulatory filing that includes some of the details on the most controversial aspect of the AIG bailout: the funneling of tens of billions of dollars to big banks like Societe Generale, Goldman Sachs (GS.N), Deutsche Bank (DBKGn.DE) and Merrill Lynch.


The SEC's Division of Corporation Finance, in granting AIG's request for confidential treatment, said the "excluded information" will not be made public until Nov. 25, 2018, according to a copy of the agency's May 22 order.


The SEC said the insurer had demonstrated the information in the exhibit, called Schedule A, "qualifies as confidential commercial or financial information."


The expiration date for the SEC order falls on the 10th anniversary of Federal Reserve of New York's decision to provide emergency financing to an entity set up to specifically acquire some $60 billion in collateralized debt obligations from 16 banks in the United States and Europe.


All the banks that got money from the Fed-sponsored entity -- Maiden Lane III -- had purchased insurance contracts, or credit default swaps, on those mortgage-related securities from AIG.


The SEC's decision to approve AIG's request for confidential treatment got scant attention at the time. But it could spark controversy now following the release last week of 14-month-old emails that reveal that some at the New York Fed had discussions with AIG officials about how much information should be disclosed to the public about the Maiden Lane III transaction."

AnonymousMonetarist's picture

Just in time for the 2018-2035 bull market.

Anonymous's picture

Issa should read "The Conspirators" by Al Martin, paying particular attention to former members of AIG's board, the current crop of appointees in Washington, and the fact that NOBODY in Washington wants AIG's real records investigated. It isn't that AIG was too big to fail, but that the corruption of this country is too dirty to investigate.
Issa wants someone's head on a plate? The head which we are going to see on the platter is called "The Republic" if the bubble pak around AIG is torn open.