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I think its less conspiracy and more just incompetence and ineptitude on behalf of the Fed (and all ther other regulators/enforcement bodies, of course)...
I disagree, it was clearly intentional. no way in hell the NYFed didn't know about these precendent setting settlements, settled only weeks prior.
These were big news at the time, because everyone was afraid of the failure of the FG's. And these transactions were facilitated by the state of NY. Everyone on the street new about them. There was a precedent set. Transactions were settled for 40-60cents on the dollar, and no one failed, there was no systemic collapse.
And the NYFed ignored that precedent.
near criminal implications
strap on a pair of balls and call it what it is
Watch Darrell Issa tomorrow...
I actually have less tolerance for incompetance vs. criminality in these matters.
Ineptitude means they should all just walk away from their posts. "Any idiot can screw up" is comforting how? And current court jester should be reconfirmed why? The Clinton Admin. made a mockery of forgetfulness. (the Nixon people were kicking themselves in the ass) At least the criminal in some ways has a greater moral standard in that he isn't a bullshit artist too.
Incompetence Defense should cost more than outright 'guilty'.
Prove to us, sir, that you are a crook and not a moron and we will go easier. The burden is on you.
Actually, it was Reagan who set the "forgetfulness" standard. Remember?
You are as blind and naive as the day is long.
Nice work TD. The one additional thing pointed out by the FCIC that I think we should focus on is that "no collateral" was put up by Goldman in most cases. I didn't say "little collateral". I said "no collateral". There in lies the moral hazard. Near the pike of the subprime bubble , Goldman would pile on even more contracts with AIG, with posting NO COLLATERAL. Maybe that's why they offered to tear them down, because without any exchange of money, there is no CONTRACT. Period. They should be questioning Rubin. He seems to be in the center slot
The hits just keep on coming.
As the timeline continues to unfold, many of the so called "conspiracy" theories seem to be playing out as the truth.
Though the focus on this matter appears to be the NY Fed, the bottom line is that this is on Bernanke's watch as are so many other failed matters.
President Obama: This guy has your "strongest support"?
The US Senate needs to have these questions answered and must vote "no" on the cloture motion so that a proper and reasonable investigation can take place.
"the bottom line is that this is on Bernanke's watch as are so many other failed matters."
Bingo. It should be clear to all by now that the Fed made a policy decision that they simply would not (and will not to this day) accept any liqidation of debt - as would occur in a CDS tear up. In a financial system geared 30 to 1, the contraction of debt - even of a few parties that could afford it - could cascade when the effects of contracting credit among the strong cause the strong to curtail marginal lending to the weak.
In essence, the prohibition on the liquidation of debt and the contraction of credit is a "monetary policy" decision that the Fed dare not explain, because to do so would require that they confess just how unstable they allowed the financial system which they regulate to become. They chose instead to have the public think they were just slopping the goodies on their pals on Wall Street - which of course they did.
Frankly, I am surprised that the Fed prefers to be though of as corrupt and criminal, rather than merely asleep at the switch.
And from the WSJ, not a publication you could deem run by the tin hat crowd. Timmah's testimony will be "must see" TV, but I must say I agree with the prediction that Timmah will simply plead that he had already gone into seclusion in preparation for his Ascension to Treasury, and had no knowledge of these proceedings. Then that leads to Ben, who heads the FRB and on whose watch this thievery occurred. It's called "accountability." I also agree that if you want to get the real story, the underlings must be called in, and when you get the story , then bring in the big fish. An investigation, not a staged conversation, is what we need.
spoken from a man who uses a teleprompter at an elementary school.
this is getting better than 'my pet goat'.
Once the crack is found the dominoes will fall faster than most appreciate.
CNBC.com polls with over 10,000 votes have
51% thumbs down on BB and 77% down on TG...
Put this is the previous AIG post comments, but looks like Barofsky has something to say about this too:
Thanks for the link and info, Gilga.
Let's hope those folks in the US Senate come to their senses very soon. An investigation must be conducted before Bernanke is given another 4 years.
And for the love of all that is sane, please remove Geithner from his US government post as he is an absolute embarrassment.
Yes. Yes. Yes. Yes. Yes.
He has been remarkably ineffective, largely due to utter lack of interest on the part of the MSM and the American Idol audience.
It is absurd we still have to speculate about this. My vote goes to Don Kohn who is the uncrowned King. Regardless, we have been told Geitner is not involved. Well then, who the hell is? Who made these decisions without Geitner's approval? Not one so called journalist has asked this question, nor one congressperson. Let's get on it, you incompetent fools!
There is NO way Geithner was involved in this or any other thing.
Having read the post here, I came to the conclusion that it was actually Geithner's tooth fairy that made all the decisions.
The truth of the matter is Geithner was the head of the New York Fed BUT he didn't know what he was supposed to be doing there.
So case closed. This man is a certifiable idiot who never knows anything BUT enjoys the trust and confidence of this President.
Where the hell is Cuomo?!
busy going after process servers and having tea with david patterson
hustling up contributions for his campaign coffers?
This ceaselessly erupting scandal will be the political death of the Obama Administration, if it's not too late already. It is marked by all the greed, hubris, arrogance and condescension of the classics (Watergate, Iran-Contra etc).
The principals involved should do the honorable thing and at least offer to resign. More importantly, the White House and Big Mojo Handlers need to get off the schneid and FIRE IMPORTANT PEOPLE which is the only firewall left. Otherwise it's 'what did the White House know and when did they know it' time.
Oh well, the Bubble of Unreality in DC remains the most important bubble among all the bubblicious bubbles going. Too much power and Xanax will do that to an elite.
I guess the fine and noble patriotic aspirations of the Obamanauts will simply founder and sink on billions of dollars of dirty payola, and the ensuing coverup. Rinse and repeat.
This ceaselessly erupting scandal will be the political death of the Obama Administration
I think that no matter what Obama does, he can't save this nation from its deep, structural problems. He will be regarded as the next Hoover in 50 years, whether he likes it or not.
when one seeks continuity and bipartisanship don't be surprised when history can't remember exactly which decision was obama's and which bush's.
FEDGATE, est. 1913. I like that.
Right ... except you quite idiotically overlook the fact that all this happened before Obama assumed office.
Obama has his warts, but hanging this on his administration is Beck-like in its hysteria.
"Meet the new boss, same as the old boss."
It should be obvious to all well-informed observers that all these boys are part and parcel to the entire shenanigans.
I do get a kick out of people who still believe in Red = Good, Blue = Bad, though.
Wake up, people! This scheme has been in place since the middle of the Second World War. Just have a gander at what Averill Harriman and his good friend Prescott Bush were up to and that will go a long way toward clearing all this up.
One Big American Mistake, Amen!
Excuse me, but I don't recall Obama being president in 2008 when all of this transpired.
I think you have mistaken this site for HuffPost. Go there you goddamn fanboy.
Glad to see you here. Wish more folks on both "sides" of the alleged aisle understood, "Meet the new boss, same as the old boss," aren't just words at the end of a song. Hope all is well with you.
Bwahaha. If you can't beat 'em, silence 'em.
Sigh, eyeroll....politics 101: It isn't the crime, it's the COVER-UP
The Bad Things are happening now which is easily proven by the fact that we have to dig and post this stuff ourselves, here on this site and other fabulous sites, and have it trickle, or ooze, into the mainstream media, and have Congressional committees and independent investigators and Bloomberg lawsuits fight and scrap for every little memo and email and telephone log.
Obama is strapped to this thing and it is going very, very deep into the ocean. The Abyss, if you will. To fail to see that is to be doomed to a very tragic end. The principals all work for him!!!!! He is responsible for their past and present conduct inasmuch as he retains their services (and those of Enron lobbyists to pimp their Congressional rides).
Get a fucking clue. I voted for Obama, you think I like this? I do not! But I can see the goddamn nose on the end of my face. Apparently the 'new best and brightest' in DC cannot.
No One Is Immune To The Iron Laws Of Scandal
No One Expects The Spanish Inquisition
Fine job, Tyler.
You are getting quite the "rep" around the internets for these reports.
boy is that Sarah Dahlgren hideous looking, besides being engaged in a huge amount of corruption
Looks like she just got a promo for her fine work on AIG. From NYFED site:
New York Fed Creates New Group and Names Sarah J. Dahlgren Executive Vice President and Head of Group
January 21, 2010
NEW YORK—William C. Dudley, president and chief executive officer of the Federal Reserve Bank of New York, announced today the formation of a new Special Investments Management Group. The Bank’s board of directors promoted Sarah J. Dahlgren to executive vice president and named her as head of the new group. She will also become a member of the Bank’s Management Committee.
This move represents an additional enhancement to the Bank’s governance and risk management in light of the tremendous expansion of the Bank’s balance sheet over the past eighteen months by separating out the management of the new investments from the Bank’s financial risk management. Among the Group’s responsibilities will be managing the Bank’s credit extension to AIG and its Maiden Lane LLC portfolios.
Ms. Dahlgren has been the senior vice president in charge of the AIG relationship since September 2008. Prior to that, Ms. Dahlgren was responsible for the relationship management function in the Bank Supervision Group, with oversight responsibility for the Group’s portfolios of domestic and foreign banking organizations. Previously, Ms. Dahlgren was responsible for the Bank Supervision Group’s information technology and payments systems exam programs, as well as its Year 2000 readiness efforts.
Since joining the Bank in 1990, Ms. Dahlgren has held various positions within the Bank Supervision Group, as well as having responsibility for the Bank’s credit risk management function. Ms. Dahlgren holds a bachelor’s degree from Cornell University and a master’s degree from Duke University.
It's like any government subsidy, if the Fed is providing it everyone takes all that they can get because it clearly doesn't hurt anyone. (sarcasm intended)
One Big American Mistake, Axxxxxxxx!
Is that what "OBAMA" means Changes you can believe in!
"We hope this is the number one question asked by Chairman Towns of Mr. Geithner. But as the latter will plead the fifth due to his lack of involvement,"
Well, he can't/won't. First if one 'pleads the fifth', they would have to apply it to every question. Second if a sitting cabinet official plead the fifth, it would be grounds for immediate dismissal. Also, if congress offered him immunity he would have to spill if he took it. He will, I'm sure, be less than forthcoming.
Here's a warm-up:
"I do not recall that."
"I'll have to refer to my notes on that, Senator. I'll have my staff get back to you."
"I'm sorry. I just don't recall that conversation."
"Not that I am aware of, Senator."
We should have a running list of phrases and count how many times Geithner and Pauslon say these things. It would be funny if it weren't so sad.
Just don't make it a drinking game. We're all too young for that level of liver failure.
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