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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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Tue, 01/12/2010 - 11:17 | Link to Comment Handle with care
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

Tue, 01/12/2010 - 11:43 | Link to Comment Number 156
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.

Tue, 01/12/2010 - 12:08 | Link to Comment MarketTruth
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).

Tue, 01/12/2010 - 15:14 | Link to Comment SWRichmond
SWRichmond's picture

You are right.  Capital flees corruption.

Tue, 01/12/2010 - 19:36 | Link to Comment Anonymous
Tue, 01/12/2010 - 14:09 | Link to Comment Bill - Yes That Bill
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.

(*SHRUG*)

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."

(*SHRUG*)

Cheers!

BILL

Tue, 01/12/2010 - 15:01 | Link to Comment Ripped Chunk
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 

Tue, 01/12/2010 - 11:25 | Link to Comment DaveyJones
DaveyJones's picture

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

Tue, 01/12/2010 - 11:39 | Link to Comment Wynn
Wynn's picture

+1

Tue, 01/12/2010 - 11:52 | Link to Comment Assetman
Assetman's picture

+2

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

Tue, 01/12/2010 - 12:36 | Link to Comment Gilgamesh
Gilgamesh's picture

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

Tue, 01/12/2010 - 12:41 | Link to Comment SV
SV's picture

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

You were posting at the same time!

Tue, 01/12/2010 - 12:38 | Link to Comment SV
SV's picture

"Interested enough in getting to the bottom",

Only when it serves him.  Just ask Gobie!

 

(sorry, couldn't resist - snark)

Tue, 01/12/2010 - 22:40 | Link to Comment Anonymous
Tue, 01/12/2010 - 11:38 | Link to Comment john_connor
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:

https://www.icontribute.us/scottbrown

http://globaleconomicanalysis.blogspot.com/2010/01/massachusetts-miracle-republicans-may.html

Tue, 01/12/2010 - 11:53 | Link to Comment virgilcaine
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)

Tue, 01/12/2010 - 11:54 | Link to Comment Careless Whisper
Careless Whisper's picture

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

Tue, 01/12/2010 - 15:46 | Link to Comment john_connor
john_connor's picture

+ 10

Tue, 01/12/2010 - 12:53 | Link to Comment Anonymous
Tue, 01/12/2010 - 11:45 | Link to Comment Anonymous
Tue, 01/12/2010 - 11:50 | Link to Comment Assetman
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.

Tue, 01/12/2010 - 12:02 | Link to Comment deadhead
deadhead's picture

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

Tue, 01/12/2010 - 12:41 | Link to Comment docj
docj's picture

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

Tue, 01/12/2010 - 11:56 | Link to Comment Anonymous
Tue, 01/12/2010 - 11:57 | Link to Comment Anonymous
Tue, 01/12/2010 - 12:05 | Link to Comment deadhead
deadhead's picture

thanks for the link 191067....

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

Tue, 01/12/2010 - 12:04 | Link to Comment Anonymous
Tue, 01/12/2010 - 12:18 | Link to Comment Cursive
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.

Tue, 01/12/2010 - 16:36 | Link to Comment Miles Kendig
Miles Kendig's picture

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

Tue, 01/12/2010 - 12:27 | Link to Comment Anonymous
Tue, 01/12/2010 - 12:44 | Link to Comment pros
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.

Tue, 01/12/2010 - 12:49 | Link to Comment ArkansasAngie
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.

Tue, 01/12/2010 - 13:44 | Link to Comment AnonymousMonetarist
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.

 

Tue, 01/12/2010 - 15:41 | Link to Comment Jim B
Jim B's picture

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

Tue, 01/12/2010 - 15:59 | Link to Comment AnonymousMonetarist
AnonymousMonetarist's picture

Nah just sayin' ...takes a thief.

Leverage is a dirty business.

Tue, 01/12/2010 - 16:32 | Link to Comment Ripped Chunk
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.

Tue, 01/12/2010 - 15:45 | Link to Comment myshadow
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."

Tue, 01/12/2010 - 16:00 | Link to Comment AnonymousMonetarist
AnonymousMonetarist's picture

Just in time for the 2018-2035 bull market.

Fri, 01/15/2010 - 10:45 | Link to Comment Anonymous
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