The SEC Should Immediately Declassify Schedule A To The AIG-Fed Shortfall Agreement From March 16, 2009
Matt Goldstein at Reuters is on a roll: after pointing out the SEC's complicit role in the AIG disclosure fiasco, today he highlights the list and details of securities that was purposefully and willfully redacted by the same SEC that today filed a second lawsuit against BofA, after Rakoff yesterday told the queen of corruptis in extremis to shove it. The list of redacted CUSIPs contained in the Schedule A to the AIG Shortfall Agreement with the Fed's Maiden Lane III (aka Taxpayer-to-Goldman Money Transfer Special Purpose Vehicle) indicates all the underlying securities which ended up being repaid to the nationalized insurers' counterparties at 100 cents on a dollar, when in fact their market value was well over 50% lower.
In order to get quantized disclosure on a case by case basis of how horrendous risk management ended up costing taxpayers billions of dollars, we demand that the SEC's redaction of "Schedule A - List of Derivative Transactions" better known as executive order "Operation Goldman Embezzle Greenlight" which as Goldstein pointed out lasts until November 2018, be immediately overruled and if Tim Geithner is expected to fry in hell (aka Congress) for his (lack of) participation in this whole debacle, then not only should Mary Schapiro be joining him on the witless stand, but that all the redaction in Schedule A be immediately lifted. This all should be followed by the banks', primarily Goldman and Primary Dealer wannabe SocGen, payment to the Federal Reserve of the difference between the posted collateral and the par value.
As Janet Tavakoli points out for the reasons for the redaction:
"They didn't want you to know which deals had
soured the fastest. The reason they didn't
want to release these details is because it would have shown that some
securities suffered only moderate discounts while others were worth
much, much less. And that could have prompted an investigation into the
deals that performed the worst.''
And just in case you get any ideas that any of these are FOIAble, in keeping with the administration's policy of openness and transparency, "in January 2009, the SEC rejected a Freedom of
Information Act request seeking access to the entire filing. The SEC
denied access to the filing because AIG's application for confidential
treatment was pending."
Full listing of redacted CUSIP, tanches, notionals, posted collateral and negative marks-to-market.