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Live Webcast Of AIG Hearing, And Complete Witness Testimonies
Readers seeking a live webcast (interrupted by an occasional Goldman Sachs commercial) of the Committee on Oversight and Government Default can find it at the Committee's website here.
The link also includes the full schedule and opening statements from all participants.
As a reminder, here is the lineup for today's grilling:
Panel I
The Honorable Timothy F. Geithner
Secretary
United States Treasury Department
Mr. Henry "Hank" Paulson
Former Secretary
United States Department of Treasury
Panel II
Mr. Neil Barofsky
Special Inspector General
Troubled Asset Relief Program
Mr. Thomas C. Baxter
Executive Vice President and General Counsel
Federal Reserve Bank of New York
Mr. Elias Habayeb
Former Senior Vice President and Chief Financial Officer - Financial Services Division
American International Group, Inc.
Mr. Stephan Friedman
Former Chairman
Federal Reserve Bank of New York
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ZH Coinage/Neologism Alert
Blusterfuck: What happens at Congressional hearings
Couple other videos once the live dog and pony show is over
Josh Rosner says (ears to the ground) Geithner will be done by end of year
http://www.fundmymutualfund.com/2010/01/videos-palooza-robert-prechter.html
Also a good Jim Rogers video in there and Robert Prechter saying we're all doomed anyhow
Any alternate links? That one is blocked at work.
also on CSPAN 3 starting at 10am (free standing WMP format)
mms://wms-rbn-sea010.rbn.com/cspan/cspan/wmlive/cspan3v.asf
Also:
With VIDEO
www.c-span.org/flvPop.aspx?src=cspan3&live=C&pop=Y&remote=N
Just audio
http://wms-rbn-sea004.rbn.com/cspan/cspan/wmlive/cspan3v.asf
What say we just ABOLISH THE FED and go home, eh?
Would be nice. It's a bit like firing your boss, though; kind of hard to swing that one.
Nothing rattles an architect of life like everyone shitting the wrong bricks.
NOTHING will change, absolutely nothing. This wasn't even good kabuki theater. With the exception of a handful of individuals the entire Congress are whores. Paul Kanjorski is a butt fucked whore.
The money won and we lost, it's time to get over it.
Bald kabuki theater isn't good unless there is hats.
http://www.youtube.com/watch?v=3zUUtf7gOe8
This gem of a quote is in Politico today. Looks like the Obama Administration has fallen to a new low, relying on Jim Cramer's opinion one the economy. And yes, I think we'd be much better with Ron Paul as the minority leader.
http://www.politico.com/politico44/perm/0110/bristling_over_bernanke_d16...
A senior administration official tells POLITICO's Mike Allen: "It's amazing that Senate [Republicans] can barely muster a majority for a Republican who was named Time's 'Man of the Year' and who served in the Bush White House, was appointed to his current job by President George W. Bush and has the full support of the US Chamber of Commerce and Main Street American business. And their main complaint is that he saved the world from what Jim Cramer has called the 'financial stone age.' Is the minority leader Ron Paul? Someone's learned the wrong lesson from the MA race and it's not President Obama."
And by the way, Mr. Administration Official, Adolph Hitler was also Time Man of the Year.
We've been through this one before. Hitler was nominated but did not receive the"honor"
Um, check 1938....I like Haile Selassie myself (1935)
http://en.wikipedia.org/wiki/Time_Person_of_the_Year
someone misunderstood the meaning of the word "change" and it's not the American people.
Since both Geithner and Paulson say that the bailout of AIG saved the financial system from utter disaster we can expect to see them competing to claim credit for the decision today right?
Thanks for posting the link.
he said this meeting is about fixing things today, not blaming for yesterday... forget blaming, i want to see indictments.
When the Fed does it, then it is not a crime ;^)
And perp walks. Don't forget the perp walks.
awesome, Ron Paul gets to ask some questions.... this should be fun
grabbing some popcorn
While this will be fun to watch, what is said during these hearings only counts if it makes "The Daily Show".
If it weren't for the Daily Show most 20-year-olds, even in University studies!, would have no idea who Geithner is.
The maddening, and theatrical, part of this whole thing is the brevity of time with the Nefarious Geithner - it should be all damn day. Some of the questions aren't even being answered with this whack-a-mole set up of 5-minute allotments for the various congresscritters present.
New moniker: "Lame Excuse Timmy"
"Move the mike a little closer"
"I'm almost eating it"
Almost doesn't count Timmy.
TG: "I almost eating it now...."
3...2...1...
He's sworn in. Let the perjury begin.
2 minutes into Timmah's hideously satanic recitation of the dreadful consequences of the failure to act, the failures of the regulators, the finger pointing (drink if you are playing along) . . .
what horseshit.
At what point does misrepresentation cross over into outright lying?
He's talking as if bankruptcy courts have never been invented.
He's talking as if the insurance divisions of AIG were completely unregulated and were as vulnerable as the derivative selling unit.
He's talking as if refusal to put up more collateral by AIG would cause 100 million people to lose their jobs. I'm not sure how he links a regulated insurance unit maybe being shaky leading to companies that bought the insurance shutting down, maybe I'm not super smart like Timmah
"hideously satanic." I'm listening as I type and they are reminding me that if we didn't do this, the earth would have been sucked into the sun which would have then imploded into a black hole sucking everything in including pluto
Too bad the idea that taxpayers have made money on the 'arrangements' has been thoroughly debunked. That happens to be a central feature of the testimony.
Defense of 100% payout 100% lame. Barely there.
So the government got the assets at 50% in return for the 100% payoff of the insurance contract. Is this correct? And how much are those assets worth now?
thank you
For detailed forensics see http://www.nakedcapitalism.com/2010/01/ft-joins-ranks-of-shameless-fed-boosters-runs-front-page-story-with-incredible-claims-re-aig-cdos.html
In summary, Maiden Lane III can only be massaged into an on-paper 'profit' status by assuming mark-to-model valuations on distressed assets that are, well, silly. In fact the Fed's own releases have shown a value in ML III of $22.4 billion, compared to the original valuation of $29.6 billion, for an additional $7 billion loss (over 20%). The made-for-TV statements and press coverage are just for dupes.
Turbo tax is acting defiant. I wonder how that will play in jail?
C'mon congress critters, grow a pair and attack!
He's really on fire today.
I guess he's aware that not only his job, but his freedom is on the line
aint that the truth---congress football--enough boohooing.
this may turn out to be a complete dog and pony show--what a sham.
not if they let Ron Paul ask some questions.
Who is that fat guy behind Geithner falling asleep.
Can you believe that this idiot is talking about the football game - when we have been robbed by these federal reserve assholes
i love a good circle jerk in the morning. smells like....futility.
We need Joseph Cassano to testify. He's ground zero for not only putting AIG at risk but the World economy. Where the hell is Joseph Cassano of the Financial Products Group of AIG?
London. He would pull a rove and not testify. I don't see anyone serving with a call to testify. If he did he would be taking the 5th.
I wish they would dispense with the long winded explanations & denials and just state for the record what everyone knows: national security. See how it easily it slips off the tongue? National security. Try it; don't you feel better now?
We should be applauding their valiant efforts as they selflessly acted in the best interests of the country. And because they undertook great personal risk arising from the violation of many existing laws, they are candidates for blanket presidential pardons.
National security. It's what Barry will be explaining to a national TV audience in the near-to-short term. (The SOTU address tonight will only focus on the positive ie government jobs growth, etc.)
a heartly LOL at the brett favre analogy
Shorter Kanjorski: Football is so much easier to understand...where's the bucket of whitewash?
I couldn't listen anymore; I had to turn off the dog and pony show. None of the malfeansce, corruption, and greed will end until there are bodies in the street...
Kanjorski just made me throw up in my mouth a little.
Where do these men get off taking the biggest criminals in government out for an Ice Cream cone?
It is as if they are all reading from a script and they discuss this event as if it has passed. Let the lessons begin
This kandorski guy is covering up for getner character
Ah ,that would explain why Kandorski was the one who briefed congress around 9-11-2008 in regards to the 550 billion dollar run at the fed discount window and bernake and paulson where there to save the day by closing the window. No there's no reason to believe that should "spoke the markets."
So we shouldn't question what they did as if they hadn't done it the world would have burned down.
These guys saved us from utter catastrophe. Stand up and take credit for these heroic decisions someone. We need to know who to honor for saving us all
Kandorski is a traitor
Timmy is a lying little shit - just start with the grand jury, indictments, and perp walks.
It's amazing how incompetent these politicians are in questioning witnesses; considering how many are lawyers.
+1
on the contrary, it's *because* they're lawyers, that they know how to not-question.
Burton has gotten through a few shots. Nice job.
yeah Burton was basically calling him a liar
now we're moving into the whitewash phase.
Ever see a kid caught red-handed in the cookie jar?
Ladies and gentlemen, the treasurer of the USA.
LIAR
am i correct that the term counterparties means Goldman Sachs?
And UBS and several other foreign banks as well
Shorter Cummings: The Democrats called for this hearing to insulate Obama as much as possible and obfuscate the glaring fraud of our financial system from a seething public.
he backed off huge...something is wrong...and we are all being played....
he backed off huge...something is wrong...and we are all being played....
This became very clear after noon when
E Cummings ordered questions in writing
and Mr Chaffetz et al objected. E Cummings
first excuse was that Mr Paulson's schedule
did not allow it. When Reps said they would
rather question the current TS, EC gave
them a minute...
Fuck Paulson's schedule - he's retired - he can sit there all damn night. Pathetic ain't it?
Rather, Chair Edolphus Towns...
How can this be about national security
So if the losses wouldn't have been significant if they got less than par, why would system have collapsed?! Such BS!
This hearing has more to do with sweeping things under the rug than getting to the truth. Everytime a committee member begins to ask a hard direct question, they say time has expired, not allowing a thorough interrogation. Why is there even a time constraint. Something so important should extend to after hours if need be. This is more like a broadway show than anything else.
The democrats are representing their party and not their country
What I don't understand is that if we were all going to suffer, 1000's of factories would have been closed, students wouldn't go to college, banks would have runs, etc..then how did it become a fucking profit center of unprecedented numbers?
If this was a true crisis why is profit motive the main theme?
Cummins backed off...that was a softball...Geithner knew but did not know? Come on....
i can't read that guys name, but nice zinger about the tax cheating
Shorter TG: I am proud to help reform a collapsing ponzi that i was instumental in creating. (I take pride in my future employment at...)
Tim Geithner is certifiably crazy:
Toys in the attic, He is crazy.
Truly gone fishing.
They must have taken his marbles away.
Crazy.Toys in the attic, he is crazy.
http://www.youtube.com/watch?v=jViTte8VAzU
OMFG he just admitted that he not only called Blankfein, he asked to see PRINTOUTS from Goldman's INTERNAL REPORTING SYSTEM on their exposure! WTF is this!
Wow! This Mica guy is giving it to him straight!
Timmah is saying he inherited the crisis when he joined the administration. But didn't he have some kind of role in the financial system before then? I seem to remember he had some kind of role, maybe President of the Fed that directly oversaw Wall Street perhaps?
Now Timmah is lying again. He's lying that there were no alternatives to paying 100% or letting Armageddon happen
well now that i realize that everything that TG has ever done was to benefit the American public i feel much better
Jan. 27 (Bloomberg) -- A French regulator was willing to discuss allowing lower payments to retire American International Group Inc.’s obligations to the country’s banks, according to congressional testimony that undermines part of the rationale the Federal Reserve Bank of New York gave for paying full value.
Liars.
Did he just say "act to protect the innocent?"
Crazy.
Shorter Kucinich: No no no...F*ck YOU!
This framing of the bailout/rescue, that All markets would have collapsed, the country would have descended into turmoil, there would have been riots in the streets, etc., is just utter bull$hit.
I would counter propose that the bubble valuations in markets would have corrected, fraudulent and failed firms and investment vehicles, those that made bad financial decisions or participated in contracts without regard to true risk assessment, and investors and creditors of those firms and contracts, would have paid the appropriate price, the loss of their investments and misallocated capital would have been lost, as is appropriate in capitalism.
Government and free markets: In for a penny, out for a pound...
...
but he was protecting the American taxpayers that work at and own Goldman Sachs... these people just don't get it
Here's my question, can someone pass this on to one of the Congresspeople:
Mr. G --How did your experience as a tax cheat prepare you to deal with the greatest financial crisis since the Great Depression? and did that experience help in anyway with your dealings with the AIG pass through?
Is it illegal to tell the little prick he can only use "yes" or "no" as an answer, then ask questions accordingly? It would save time, and get to the answers they/we are looking for. Of course he could plead the 5th.
Wouldn't it make more sense to have Geithner and Paulson go last in this hearing, after speaking with all the other people involved. Since to hear what others have to say, it would provide better understanding of the conduct on their behalf?
Here's my question, can someone pass this on to one of the Congresspeople:
Mr. G --How did your experience as a tax cheat prepare you to deal with the greatest financial crisis since the Great Depression? and did that experience help in anyway with your dealings with the AIG pass through?
TG: well you are basically talking about stealing money from the government in either case. now since the government has or will steal this same money from some other people, who could have stolen the money from even other people and so on, all i have really done is restore the money to its rightful owners, me and the Rothschild family, and thereby taken great personal risks to protect the American people and the known world as we know it, and the whole universe.
This framing of the bailout/rescue, that All markets would have collapsed, the country would have descended into turmoil, there would have been riots in the streets, etc., is just utter bull$hit.
I would counter propose that the bubble valuations in markets would have corrected, fraudulent and failed firms and investment vehicles, those that made bad financial decisions or participated in contracts without regard to true risk assessment, and investors and creditors of those firms and contracts, would have paid the appropriate price, the loss of their investments and misallocated capital would have been lost, as is appropriate in capitalism.
Subliminal TG: I am sitting here today as a bought and paid member of the international banking cartel. We do what we want, when we want, and to whomever we want. Mess with us and we will crash EVERYTHING! You don't understand how incredibly screwed you all are so...don't ask. I will never answer any of your questions honestly or to the satisfaction of anyone paying attention.
(...)
Rep Marcy (not)Kaptur(d) knows how to use 5 minutes to bitch slap a highly practiced disembler righteously and on point.
Acting in the best interest of Golman sachs...:-)
At what point does the "smoking gun" fire the "silver bullet" that dispatches both Tim and Ben?
the girl behind Timmah is doable
Geithner is a bad liar.
I believe the questioning would be more effective if he was strapped to a table on his back and answered questions as water was poured over his face.
This is what the American people want to see done to all these b@stards.
Was hilarious to see the gentleman from Massachusetts go ballistic! Guess the results from the Special Election was playing on his mind :)
1. This will be used to destroy the Democratic Party, but it was Obama who let it happen
2. Let's hope Timmy doesn't take a drive to a nice park outside DC like Vince Foster.
Huh? Haven't you noticed all of this happened during the Bush administration? Stop watching Faux News and get a clue.
Is there any doubt, or has there ever been any doubt about the fraud with Goldman Sachs perpetrated on this country for years? Geithner, Bernanke, Paulson, Goldman, JPM, they are all guilty of treason against the US Constitution. We need grand jury indictments. NOW!!!!
Why do I feel like absoultely nothing is being accomplished....oh, right, because nothing is...these guys ask the same fucking questions over and over again and don't understand the problem enough to get into the details that matter...hold on a sec, are those little horns spouting from Geithner's head??
Wow...anytime I watch cspan and see some of these government reps talk, it makes me wonder who the FUCK voted for these barely literate tools...William Lacy Clay...wtf?
gerrymandering?
We see first hand the failure inherent in the system.
WTF Indeed.
These Congressman need to have industry professional do the question asking for them. 5 minutes is not nearly enough time to extract answers.
Wow. I gotta say some of them are actually saying he is a liar without actually saying it. How does Geithner survive this? The visible lack of confidence in him should be enough to fire him. If he had any integrity he should be resigning after this grilling.
Timmy says he was protecting the innocent.
He has an amazing set of balls, I must say.
I think what is overlooked in all of this is not really the swaps that AIG had with these other banks, but that by negociating a lower price on the swaps could be construed as a re-org or an EVENT by CDS standards, in which case all of the insured wrapped and AIG CDS would become payable. The amount of that paper out there could well be in the trillions. I think that was the real systemic risk. Not advocating what was done, but my guess is that was the real fear in all of this. AIG had a shitton of CDS out there
Have to agree considering the whole derivitives market is worth 600 trillion and is so complicated and is impossible to unwind without creating a huge crisis with monstrous losses.
It is apparent that most in congress are barely financially literate (i guess being bot and paid for by the financial elite is all the financial knowledge that they need). Further, most still don't have a clue about what went on here. Finally isn't there a school the congress people can go to, (because clearly law school didn't work for some of them) where they could learn to ask proper questions (and enforce "it is a yes or no question" Mr. Geithner).
So far, complete circle jerk.
and they didn't even know what derivitives were in 1998 when they told Brooksley Born that she didn't know what she was doing and took away her authority as CFTC head when she was trying to regulate this industry. They said what they were paid to say. When asked before the senate committee what was she was trying accomplish she said "Protect the American Taxpayers money"
IS ANYONE WATCHING THIS BEAURACRATIC BULLSHIT.....PAULSON DOESN'T HAVE TIME ENOUGH IN HIS SCHEDULE TO CONTINUE WITH GEITHNER, WHAT THIS FUCK IS WRONG WITH THESE PEOPLE.....FFUUUUUUUUUUCCCCCCCCKKKKKKKKKKKK THIS
Well said! I was thinking the same exact thing!
Thats basically what they are saying to Americans..if you believe the taxpayer won't have a loss...your lost.....there will be no recourse...they are in the clear...
If you believe we were in a critical emergency situation and the only thing they could do under that emergency was enrich Goldman etc...your a fool...which we must all be as no clawback with penalties have occurred.
What is a Force majeure? don't most insurance contracts include some form of this?
Even if not applicable...IF this was an emergency THEN all profit motivation should be off the table till stability returned.
I am developing a very deep-seated phobia of assclowns.
Another pony and dog show courtesy of our alusterous (poor spelling) Congress!
All I keep thinking is... Answer the f'ing question! But then again why would I expect anything different.
apple tablet will be annonced in 30 mins...no doubt that will be the headline news - possibly the number one news event of the year (maybe after Brad's mum giving him counselling about staying with Angelina)
cynical me thinks the timing of the heardings is a bit too coincidink
http://www.lewrockwell.com/blog/lewrw/archives/048672.html
I get it - Geithner was trying to help us. He's actually a wonderful man. Thanks, Tim! I get it now!
Gentlemen,
We cannot further question the current Secretary Geithner because of schedule constraints for former Secretary Paulson. Can you please explain to me what is more important than this hearing right now. And how in the hell do they have any leverage negotiating their timeframe. If thats the case, why bother even reminding them that they are under oath. Obviously they are smart enough to respond to questions with empty jargon just so that the time constraint repeatedly becomes an issue. Absolutely Absurd!
The comments here on ZH help me keep my sanity as an American. Thank you all.
" I hope you will join us in this"
About the 8th time it was repeated.
The only thing people want to join in would be the selection of your jump suit.
Paulson: W-w-well I would say this, the jumpsuits is not the problem, it is that we had no way of knowing there would need to be suit. For had we known, then we would have had the ability to get one.
PS: Am going to the bank today, moving last bit of funds as these banksters can kiss my a$$ets goodby.
Damn...this is so fucking painful...we have idiots running this country.
What was with the intro of Paulson by the chairman? ...after the oath "You've done this before...thanks for comin' ".
Just a casual bro out session hosted by Edolphus Clowns.
Their not idiots...how do you like your bread?...buttered thank you.
Please ask Paulson what's more important than this hearing so as to explain his time constraint. They are very well prepped in answer questions about the AIG situation, they should be asked something they do not expect, in order to put them on tilt and speak truthfully.
I would say that Timmy won that round, he has an amazing ability to talk out the clock and those idiots in congress still haven't (intentionally??) figured that out
I thought Captor's question about the lack of a recusal document was probably the best but no smoking gun.
There will be nothing new with Hank the guy is a genius - no email no taped phone calls or meetings, again no smoking gun.
Did Paulson just say "I was the most involved not involved person"?
If....if.....if.....if....uhhh....uhh....a....uhhh....i....uhhhh....g.... had failed, it would....uhhh....be.....uhh bad.
Nothing is being said, and listening to Paulson is extremely annoying.
I feel really bad for the transcriptionist who is on duty this afternoon.
Henky boy was just not involved, he was not, why don't these grownup boys don't believe him?
stuttering hank is hilarious, they they they c-c-can obviously print money
Hank da Hammer doing his Schultz routine to perfection. I know nothing ....
The Treasury Secretary was not involved, the head of the NY Fed wasn't involved. Feel safer already.
That was grand.
The senator asked where the money came from in the Fed:
Hank: It came from the Fed
Congressman: What that money from fees from banks? From where?
Hank: It comes from the government.
Congressman: From the government? But where is the money from
Hank: its...ummm..we umm...we...well we print it
(And Yes he actually stuttered)
Congressman: "where did the money come from?"
Paulson: "The fed can print money"
He is signing autographs for his new book after questioning.
Thanks for the handjob
Love "Print It" Hank Paulson
If it's 'green' then it must be printed, right?
I personally enjoyed the part where the congressman said so Timmy - "Earlier you said that you're not a politician, let me assure you, you most definitely are a politician"
LOL.
Paulson is annoying, he's basically up there saying "diplomatic immunity bitches, let me stutter for a few more hours for this sideshow and waste more taxpayer money"
You will get more answers from this video than Geithner's/Paulson's testimony.
http://www.youtube.com/watch?v=wfmvkO5x6Ng
Shorter Paulson: Our antiquated regulatory structure allowed the privileged few to further rape this country and insure that no one will ever be held accountable. It's the job we've been bred for and we're very very good at it.
Kanjorski...are you trying to get an invite to Augusta or something? Wipe that cuz off your face...you just sucked on Paulson's junk on national TV.
At one point in his testimony Geithner recalled exactly as I remember it that AIG was bailed out so it could be liquidated rather than thrust into a chaotic bankruptcy.
So how is that liquidation working out? Looks to me like thats never going to happen. Its disconnects in history like this that make my blood boil.
Where is the effing liquidation?
Paul Kanjorski: OPensecrets.org
Top 5 Industries, 2009-2010, Campaign Cmte
Industry Total Indivs PACs
Insurance $133,700 $2,000 $131,700
Securities & Investment $91,900 $19,100 $72,800
Real Estate $45,000 $10,000 $35,000
Democratic/Liberal $40,200 $40,200 $0
Lawyers/Law Firms $35,700 $23,700 $12,000
He is just excited for the hearings to end so he can get to the pizza party he is throwing for Paulson & Tim afterwards
He is just excited for the hearings to end so he can get to the pizza party he is throwing for Paulson & Tim afterwards
Sheeple Theater.....What else is on tonight?
"Informed" Sheeple Theater
The rest of the sheeple are daydreaming about passing out with their favorite addiction tonight.
Is there a Bigger Whore to the financial industry in Congress than Paul Kanjorski? If I have to listen to him tell eveyone one more time how close we were to a meltdown - and how if we had not given GS billions - we would all be eating cat food right now I think I will puke! Why is he allowed to waste time spewing the same tired tribe while others who may actually have someing constructive to sayare shut out. I only hope the people of PA will grow a brain and send his ass packing in November.
LOL...no doubt. That was blatant cock sucking. Hard to watch. Anyone from PA should be embarrassed. That was a joke.