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Tim Geithner "Protects America From Itself" By Forcing Elimination Of Material AIG Disclosure

Tyler Durden's picture


The story of the day once again focuses on the (lack of) actions of Treasury Secretary Tim Geithner, who according to recent revelations courtesy of Darrell Issa, did all he could to prevent material disclosure at AIG indicating the sad shape of the company in a filing released on Christmas Eve in 2008. The kicker can be seen on the crossed out section in the attached memorandum, where Geithner made it clear that he was willing to withhold materially public information vis-a-vis the bailout of AIG counterparties at 100 cents on the dollar, that only became public months later after intense political inquiry. The whole part discussing this in the December 24, 2008 SEC filing was eliminated under Geithner's instructions:

As a result of this transaction, the AIGFP counterparties received 100 percent of the par value of the Multi-Sector CDOs sold and the related CDS have been terminated. ML III has now acquired approximately $[62.1] billion in par amount of Multi-Sector CDOs and has aggregate liabilities resulting from its borrowings from the NY fed of approximately $[___] billion.

We aren't sure, SEC, but in our opinion this consitutes a pretty dramatic and forced lack of public disclosure for what was still a public company? And if that wasn't enough, the following guidance from Mr. Geithner should be sufficient for Judge Rakoff to immediately add Mr. Geithner to the list of people who will soon have their fate determined by a jury of their peers. Because while the SEC has proven beyond a reasonable doubt it does not care for proper disclosure of information any more, Mr. Geithner's admonition is simply staggering:

"Note that there should be no discussion or suggestion that AIG and the NY Fed are working to structure anything else at this point."

How ironic this blatant obfuscation would eventually turn out to be...

Yet one of the very relevant pieces of information is also contained in what was previously undisclosed:

On December 17, 2008, AIGFP entered into Amendment No. 1 to the Shortfall Agreement, dated November 25, 2008, with Maiden Lane III LLC in connection with ML III's purchase, on December 18, 2008 of $[  ] billion in par amount of additional multi-sector collateralized debt obligations, including $[   ] billion of Multi-Sector CDOs previously held by AIGFP as a result of exercise of 2a-7 Puts.

Ah, the mythical 2a-7 "puts." Let's recall a little blurb from AIG's Q2 2008 conference call, where Citadel's Dan Johnson' leads the following exchange:


Next question comes from Dan Johnson, Citadel Investments. Your line is open.

Daniel Johnson - Citadel Investments

thank you very much. Would you folks mind giving us a little bit more
of a tutorial around the issues referred to as 2a-7 Puts I believe its
on page 87, of the Q,
just basically trying to understand how many more
I guess clients could put this business back to you that would cause
you to generate more CDOs as we did in the second quarter?

Elias Habayeb - Chief Financial Officer AIG Financial Services

it's Elias Habayeb. With respect to the 2a-7 at this point we have
written all the 2a-7s we're committed to write. So that's the maximum
amount of 2a-7 Puts that we have outstanding. The way those work is
that that if there is a failed remarketing then we would have potential
obligation to buy the CDO back and/or the underlying security back and
on most of them we do have backstop liquidity lines in the event those
bonds have been put back to us.

Daniel Johnson - Citadel Investments

is it that we don't have any more exposure to this because there is
been no failed remarketings or even that whole issue is basically there
are no more 2a-7 that we would be on, potentially on a risk for?

Elias Habayeb - Chief Financial Officer AIG Financial Services

we do have outstanding 2a-7 Puts that continue to be outstanding and
given the current state of the market we would be expecting to be
buying back those underlying referenced obligations.

Daniel Johnson - Citadel Investments

And if sometime now what that means from capital consumption?

Elias Habayeb - Chief Financial Officer AIG Financial Services

Not at this point.

Our legal experts is looking evaluating whether or not this disclosure by then AIGFP CFO Elias Habayeb may constitute 10(b)-5 fraud. In either case, we will present a much broader analysis of 2a-7 puts due to their close connection to a topic near and dear to us and our readers: money markets, which all fall under the purview of Rule 2a-7. We are midly curious why AIGFP had material exposure to money market portfolio enhancing arrangements:

Rule 2a-7 currently characterizes certain features that enhance the credit or liquidity of portfolio  securities as "puts" and "unconditional puts."<(10)>  To clarify terminology used in rule 2a-7, the Commission proposed to replace these terms with a new term -- "guarantee" -- that would include a wide-range of arrangements designed to unconditionally support the credit of the issuer of a security...Since 1986, rule 2a-7 has permitted a fund to rely exclusively on the credit quality of the issuer of an "unconditional demand feature" in determining whether a security meets the rule's credit quality standards.<(13)>  The 1996 Amendments also permitted a fund to exclude from the rule's issuer diversification standards a security subject to an unconditional demand feature provided by a person that does not control, or is not controlled by or under common control with, the issuer of the security ("non-controlled person").<(14)>

We are also very curious why 2a-7 puts were the proximal cause for billions in multi-sector CDO exercises. Lastly, we are extremely curious at how many other entities (aside from AIG) 2a-7 puts may play a comparable destructive and destabilizing influence at the nexus of structured finance and money markets.

In the meantime, here is the full letter, courtesy of Bloomberg, that should make any ambivalence in calls for Tim Geithner's immediate resignation moot.

and this one:


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Thu, 01/07/2010 - 11:29 | 185421 bugs_
bugs_'s picture

Are all my non-disclosures so small?

Thu, 01/07/2010 - 11:30 | 185422 crosey
crosey's picture

Staggering (again).

How long can this chicanery go on, unresolved?  Until the 2010 elections?  Until it all crashes?

Will we reinstate public executions?

Thu, 01/07/2010 - 11:50 | 185457 xamax
xamax's picture

It can continue like that a long time. Dont forget 99.8% of the poulation dont even have a clue about what we are talking here. So they can lie, hide at infinity.Of course it will crash one day, and then ? there will be probably something à la 2nd WW and the game starts from 0.   

Fri, 01/08/2010 - 05:55 | 186578 Anonymous
Anonymous's picture

More to the point: most people do not care. This sort of stuff requires reading comprehension and stuff.

For the masses: as long as they can continue to watch the box and the loan to buy the latest gadgets and fashions are still forthcoming, they're happy.

Thu, 01/07/2010 - 11:57 | 185470 El Hosel
El Hosel's picture

I sent two emails to CNBC this morning to bring this story to their attention,  ( as if they don't know about it ) . Looks like the "#1 in business news" has no interest in this one...Suprise. 

Thu, 01/07/2010 - 12:06 | 185489 xamax
xamax's picture

CNBCOMCASTAGANDA is certainly not the right adress......

I'd try another channel (Fox,CNN). But I think chances are small, even in Europe noone wants to burn his fingers....(especially the mainstream media)

Thu, 01/07/2010 - 12:35 | 185536 Damn Yankee
Damn Yankee's picture

@ crosey,

The answers to your questions are: (1) see question 3; (2) nope, longer; (3) yes; and (4) hell yes!

In other words, you point is well taken

Thu, 01/07/2010 - 12:43 | 185543 bonddude
bonddude's picture


Thu, 01/07/2010 - 20:49 | 186316 albion402
albion402's picture

seems like a good running start for opening a room at the gray bar manor....

Thu, 01/07/2010 - 11:30 | 185423 Stoploss
Stoploss's picture

Off with his head!!

Thu, 01/07/2010 - 11:30 | 185425 Daedal
Daedal's picture

It's official: The rabbit hole is a bottomless pit.


Thu, 01/07/2010 - 11:35 | 185434 Sancho Ponzi
Sancho Ponzi's picture

Say 'bye bye' to tiny text Timmy.

Thu, 01/07/2010 - 14:16 | 185707 Rusty Shorts
Thu, 01/07/2010 - 11:36 | 185435 Handle with care
Handle with care's picture

Why aren't there a pack of feral lawyers smothering AIG and the government in lawsuits on behalf of shareholders and those who went short?

Thu, 01/07/2010 - 12:27 | 185524 Shameful
Shameful's picture

Lawyers like to take cases they can win.  And with the business judgment rule and a lot of the other chicanery it's actually quite hard to get people on stuff other then total fraud.  In this case the Gov was involved so you could even argue it's not fraud because Uncle Sugar told me to do it.  Also remember that litigation is a gamble and takes money.  this kind of suit would take a massive wad of cash and you might not get paid for it so a big gamble.  Hell remember that the Exxon Valdez case is still in litigation, and we know that exxon was at fault and even had a judgement against them :)  Thats to AIG. 

As to the gov the gov can just not let you sue them.  Remember when you sue they gov they have to let you sue them, they can claim sovereign immunity and tell you to kiss off.

Fri, 01/08/2010 - 05:58 | 186579 Anonymous
Anonymous's picture

The business judgment rule applies to suits for breach of the duty of care (but not suits for breach of the duty of loyalty).

Securities fraud (Rule 10b-5) is not subject to the business judgment rule.

Thu, 01/07/2010 - 11:36 | 185438 m.g. turner
m.g. turner's picture

when they've finished playing Masters of the Universe (se non prima) they, all of them, must be held accountable.....but who will hold them accountable in our lawless universe?

Thu, 01/07/2010 - 11:44 | 185449 Handle with care
Handle with care's picture

If the American people don't rise up and remind their rulers that they rule at the pleasure of the people, then the American people will deserve the neofeudalism that is being put in place for them

Thu, 01/07/2010 - 15:08 | 185818 Let them all fail
Let them all fail's picture

And exactly what are you doing to remind them?  Rising up?  Sitting at a computer?  Or do you deserve neofeudalism?  What do you suggest, or is this a pointless post?

Thu, 01/07/2010 - 15:31 | 185860 Anonymous
Anonymous's picture

They may be a bunch of nut-case Texas Libertarians but GOOOH (google it) is trying to do something other than kvetch in "comments" posts.

Thu, 01/07/2010 - 16:00 | 185909 Handle with care
Handle with care's picture

I'm not American

Thu, 01/07/2010 - 17:57 | 186123 Herd Redirectio...
Herd Redirection Committee's picture

Totally in the same boat.

I try to tell people about America's problems all the time, and that we are going down a similar path.

Well then why is there nothing on the news about America's imminent downfall,  I am often asked...

I try to warn people that America is a power in decline but so what, what are people supposed to do about it? If even the people  IN AMERICA are too lazy to do something about it,  why should we concern ourselves with trying to help them?

Thu, 01/07/2010 - 12:20 | 185511 Jim B
Jim B's picture


Thu, 01/07/2010 - 11:44 | 185450 mule65
mule65's picture

Phew, nasty selloff this morning.  Glad that's over.  Up, up and away!

Thu, 01/07/2010 - 12:00 | 185473 El Hosel
El Hosel's picture

The working group "maintaining an orderly market",  in support of their man.

Thu, 01/07/2010 - 11:54 | 185458 WaterWings
WaterWings's picture

I don't understand how you folks that do this for a living actually maintain your sanity. Methinks you are part of the problem we face because any ordinary citizen feels like this:

Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats.
H. L. Mencken
US editor (1880 - 1956)

Back and forth, day after day. Suspended animation, then the lights go out. See you tomorrow, Tim.

Thu, 01/07/2010 - 18:05 | 186135 Herd Redirectio...
Herd Redirection Committee's picture

Nobody ever went broke underestimating the intelligence of the American public.

H. L. Mencken

Thu, 01/07/2010 - 11:51 | 185460 Anonymous
Anonymous's picture

People get the government they deserve. Good jorb, Obamabots.

Thu, 01/07/2010 - 16:17 | 185942 Anonymous
Anonymous's picture

c'mon. Enough already.

No amount of "I told you so" is going to make Barack Obama any more responsible for your problems.

Thu, 01/07/2010 - 23:27 | 186439 Uncle Remus
Uncle Remus's picture

Perhaps not, but if it makes the bastards that voted for the sock puppet squirm a little in their own steaming pile of gullibility, then let's sing again, with some real fcuking gusto this time.

Cretinous leeches.

Sat, 01/09/2010 - 03:57 | 188183 Heavy
Heavy's picture

They were all sock puppets, (excepting Ron Paul, perhaps, I did register to vote for him in the primary) so is passively participating in the flawed voting system wrong?  Even to vote for Ronny?  Maybe it's only wrong to vote for the ones who might be treasonous (does economic war waged against the common American fall under the constitution's definition of treason? (not to mention foreign economic destruction caused by our post WWII systems, which wouldn't be within the definition of treason mentioned unless liberally expanded definitions are used to explain the explanation)))  As for "what to do?" I'll settle for some more published populist rage for the moment...the doing will happen soon enough, and we'll all wish for something else when it does, then, however, maybe something good will be done with regard to our governance.  History books of the future (yes, if we can still read, ha ha ha...cliche) will thrive on the dramatic changes of these days.  And maybe they'll be meant to convey truth if we do things correctly.  "Beginnings are such delicate times" and all that sort of sentiment.

Fri, 01/08/2010 - 01:37 | 186520 faustian bargain
faustian bargain's picture

nor any less.

Thu, 01/07/2010 - 11:56 | 185467 Anonymous
Anonymous's picture

What about Friedman at the NY Fed. He was buying GS shares with this undisclosed information. Isn't anything going to be done about this? or is it ok for Fed officials to trade on inside information?

Thu, 01/07/2010 - 11:57 | 185471 john_connor
john_connor's picture

They are just setting up Geithner for his fall to give O political cover.  He will simply be replaced by another loyal insider to the industry.


Nothing to see here.

Thu, 01/07/2010 - 12:38 | 185538 deadhead
deadhead's picture


Everything will be unloaded on Geithner, that was clear several months ago.  Now the rest of the goodies are coming out.

Thu, 01/07/2010 - 14:47 | 185769 Anonymous
Anonymous's picture

Flashback to November, with Krugman and DeLong signalling their support for Plan Geithner: . (Note that at the same time DeLong was flying the blame-Geithner kite for Krugman, he was also road-testing the "maybe there is a small chance of a double-dip after all" message which Krugman has now taken up.)

Thu, 01/07/2010 - 13:47 | 185647 DoChenRollingBearing
DoChenRollingBearing's picture

Maybe it will be Chris Dodd as new TreaSec.

Thu, 01/07/2010 - 14:11 | 185694 Gilgamesh
Gilgamesh's picture

Paging Mr. Dimon.

Thu, 01/07/2010 - 11:58 | 185472 Anonymous
Anonymous's picture

Ahh, now I remember. TTT is the only one for the job, because he is the only one that really understands all of the details. OK. I agree.


January 21, 2009

11:52 a.m. | Credit default swaps: No one is going to tell Mr. Geithner that he overlooked the dangers of credit default swaps. Responding to a senator’s question, he says he “absolutely did not miss” the potential problems presented by this huge and unregulated part of the derivatives market, calling it his “life’s work.” Credit default swaps amplified the effects of the recent financial crisis and were a major reason the government stepped in to bail out the American International Group.

Thu, 01/07/2010 - 12:01 | 185474 waterdog
waterdog's picture

Looks like Leo was right. I just hope he is wrong about who will replace Geithner.


Thu, 01/07/2010 - 12:02 | 185475 Anonymous
Anonymous's picture

Resign?.He accomplished what he was brought for. And I believe he is now despensible. As to next job???

Thu, 01/07/2010 - 13:47 | 185648 Joe Sixpack
Joe Sixpack's picture

Sr. CDS analyst at Goldman Sachs?

Thu, 01/07/2010 - 12:02 | 185477 Anonymous
Anonymous's picture

Someone need to bring this to Dylan Ratigan's attention, may be he would bring it up on TV.

Thu, 01/07/2010 - 12:02 | 185478 jbc77
jbc77's picture

It's become comedy. Problem is, 95% of Americans are walking around as living zombies mesmerized bu tout TV and Brittany Spears. It's going to take something large scale, who knows, maybe another market meltdown before the zombies will flinch. Got to hurt their pockets to awaken them, get pitchforks in their hands.

The entire Obama adminsitration is a kin to a really bad reality show.


Thu, 01/07/2010 - 12:08 | 185487 lizzy36
lizzy36's picture

Given that America seems to have an infinite supply of both k-y and cottonelle dollar paper, the only consequence resulting from these revelations will be Tiny Tim falling on his sword.  Absolutely nothing else will change (except i will start pvring JD's appearances on the hill).

Nice story, too bad 99% of the American population either doesn't understand it, or doesn't give a shit. 

Thu, 01/07/2010 - 12:47 | 185550 Daedal
Daedal's picture

Given that America seems to have an infinite supply of both k-y and cottonelle dollar paper, the only consequence resulting from these revelations will be Tiny Tim falling on his sword.

Considering the increasing price of crude, I may no longer be able to afford k-y to help lubricate myself from these daily rapings.

Thu, 01/07/2010 - 13:49 | 185653 Joe Sixpack
Joe Sixpack's picture

Try a natural product: RAPEseed oil.

Thu, 01/07/2010 - 12:15 | 185498 Anonymous
Anonymous's picture

The Forgotten (middle class) Man (and Woman) is delving away in patient industry, supporting his family, paying his taxes (will be paying a lot more in 2010 onwards), (conscientiously contributing to his 401k), casting his vote, supporting the church and the school, reading his newspaper, and cheering for the politician of his admiration, but he is the only one for whom there is no provision in the great scramble and the big divide.
- William Sumner prefacing Anatomy of a Bubble from 1930 prior to the Great Depression (How fitting to 2010 indeed!!)

Bracketed terms apply more to 2010 than to 1930 but the dynamics stay the same !!

Thu, 01/07/2010 - 12:43 | 185544 Anonymous
Anonymous's picture

Is it allowed to conscientiously contribute to my 401k if it's invested in bullion, mining companies, and energy equities? Is it okay to see the writing on the wall and still sock money away?

Thu, 01/07/2010 - 12:17 | 185499 Anonymous
Anonymous's picture

99%? I'm willing to bet that the real number is much lower now.
We all know what's happening. We all know we're being lied to and that nothing our government is telling us makes any sense.
What do we do about it? It's difficult to topple a corrupt regime when any attempt to organize against it gets you a bullet.

Thu, 01/07/2010 - 18:11 | 186148 Herd Redirectio...
Herd Redirection Committee's picture

I disagree on one point only.

It is not difficult to topple a corrupt regime if it is understood that any attempt to organize against it gets you a bullet.

If this was consciously understood by a large percentage of people, including those in the armed forces and law enforcement, it would be downright simple.

Thu, 01/07/2010 - 12:24 | 185519 Anonymous
Anonymous's picture

The Fed and Treasury still have so much more to learn from Zimbabwe -- thank God there is so much time (for them).

Thu, 01/07/2010 - 12:26 | 185522 D.M. Ryan
D.M. Ryan's picture

Back when I was a tyke, the SEC was known in the nether regions as the "Swift Execution Commission" - as Destructo-Man in the form of an agency.

Times have really changed if the SEC's been thrown into the victim depot.   

Thu, 01/07/2010 - 12:33 | 185533 Anonymous
Anonymous's picture

Yes, Geithner is close to getting his next promotion and a HUGE pay raise. He will then hire away the hugely talented Mr. Summers and Mr. Rubin from their low paying Govt jobs.

Thu, 01/07/2010 - 12:48 | 185551 Ripped Chunk
Ripped Chunk's picture

Seems time reveals that most things called "conspiracy theories" presently end up being revealed as true later.  It just takes time. If we have any time left............    

"33 Conspiracy Theories That Turned Out To Be True, What Every Person Should Know…"  I thought this was a good summary.

Cold comfort in the fact that the internet allows news to travel more quickly than ever. In the past you just had to shut up the mainstream media. Ah the good old days!

Please keep up the great work and most importantly keep the faith.



Thu, 01/07/2010 - 12:49 | 185552 Screwball
Screwball's picture

CNBC is discussing this @ 11:45. Steve Liesman is 'spainin it.

Thu, 01/07/2010 - 13:02 | 185579 hambone
hambone's picture

WOW!!!  My darkest tin foiler suspicions seem to be becoming reality but only for those who care to see.  Agreed, Americans want to believe the government is acting on their behest and believe we have a "free market" and couldn't (won't) conceive of the degree to which the market, the communication, the statistics, etc. are being twisted.  I can't conceive of what the end game is here unless it's just so stupidly kick the can down the road and don't let the world collapse on my watch (even if it ensures it will collapse on the next guy). 

I'm really heart sick over the actions being taken, particularly as I don't see any effective means, organization, platform from which to confront these folks.  My complete lack of optimism in the future is amazing.  I really believe this sense of foreboding is what folks must have felt prior to previous crises who could see it coming but do little to nothing to stop it (I really wish I was happily ignorant of all this 'cause none of this knowledge is constructive...just feels like a weight I'm carrying that makes me a negative malcontent compared to most folks who believe America's (and American's) future is bright).

Thu, 01/07/2010 - 13:03 | 185580 Anonymous
Anonymous's picture

Ha ha..... Timmy the liar. So what will Timmy's legacy be?

Who cares!

I bet one day I run into him at the drive-thru window. "Extra cheese please timmy".

Thu, 01/07/2010 - 14:14 | 185703 nedwardkelly
nedwardkelly's picture

You're joking right?

Even if Tim is put on the sacrificial altar to take the fall for this and anything else that can be pinned on, do you really think he's going to end up at McD's serving fries?

Aside from the fact that he's already doing just fine financially, you really think he's not going to walk into some stupidly lucrative private sector job if he is given the ass?

These people don't play the same game the peons do. Once you're in, you're in.

Thu, 01/07/2010 - 16:13 | 185928 Ripped Chunk
Ripped Chunk's picture

In for life like a Sicilian

Thu, 01/07/2010 - 13:11 | 185591 Anonymous
Anonymous's picture

giggity giggity, did someone say brittany spears??...where? where??

Thu, 01/07/2010 - 13:12 | 185595 MsCreant
MsCreant's picture

After his career as Secretary of Treasury is over, Tiny Turbo Timmahy will persue other oportunities as:

A Real Estate Agent

A Prostitute working out of Bawney Fwank's Home

The CEO of AIG

Chairman of the Federal Reserve

A Resident of a Jurisdiction With No US Extradition Treaty and No Income Taxes.

Thu, 01/07/2010 - 13:55 | 185663 DoChenRollingBearing
DoChenRollingBearing's picture

I pick E:

Resident of a jurisdiction with no extradition treaty and no taxes.

Thu, 01/07/2010 - 13:16 | 185598 Anonymous
Anonymous's picture

I suggest everyone send a tip to the SEC at

Thu, 01/07/2010 - 13:26 | 185612 Ripped Chunk
Ripped Chunk's picture

Why?  They are perhaps the biggest part of the problem.

Thu, 01/07/2010 - 13:22 | 185608 El Hosel
El Hosel's picture

Maybe they will put a cherry in the flying pigs ass with a great jobs report Friday, jamm the markets up another couple percent.... Bond market will start "breaking" about that time and the party hats can go right back in the closet.

Thu, 01/07/2010 - 13:28 | 185617 hambone
hambone's picture

Dec 23, 2009 to NPR - Geithner sez

GEITHNER: We're not going to have any (garble) wave of the financial crisis. We're going to do what's necessary to prevent that. We cannot afford to let the country live again with the risk that we're going to have another series of events like we had last year.

That's not something that's acceptable. And we will prevent that. We will do what is necessary to prevent that. And that is completely within our capacity to prevent.

MICHELE: You're saying your confident it won't happen. What levers can you press or pull to make sure that does not happen?

GEITHNER: As people saw, when you have the will to act you have substantial ability to prevent that. And we'll do what's necessary to prevent that.


HAMBONE: I see what he means.  No stupid constitution or 200 years of precedent will stop the man...Geithner has the "tools" and will not let us down.  Soviern defaults, dollar, nothing can slow this man.  Phewwww.  Crisis averted.  I don't know what I was thinking.

Thu, 01/07/2010 - 13:28 | 185618 HEHEHE
HEHEHE's picture

Why would the government investigate a blatant criminal misuse of power that they obviously endorsed?

Thu, 01/07/2010 - 13:37 | 185637 ArkansasAngie
ArkansasAngie's picture

Mr. Geithner needs to be fired -- No golden parachut for him.

Mr. Bernanke needs to be fired -- No golden parachute for him either.

Sun, 01/10/2010 - 14:51 | 189231 lesterbegood
lesterbegood's picture

Give them a lead parachute to speed them on their way to the hard bottom!

Thu, 01/07/2010 - 13:51 | 185655 mrmortgage
mrmortgage's picture

We are impressed with Matt's command of the subject from a financial, political and overall style of social commentary. We first noticed his work for Rollingstone. 

Without further introduction we have below




Mr Mortgage.

Thu, 01/07/2010 - 13:54 | 185661 Stuart
Stuart's picture

We're no different than a freakin' banana republic, except we wear more suits.    How the mighty have fallen... pathetic and sad. 

Thu, 01/07/2010 - 14:08 | 185691 Rusty_Shackleford
Rusty_Shackleford's picture


Sunlight the best disinfectant?




It's gravity.



Thu, 01/07/2010 - 14:33 | 185742 Anonymous
Anonymous's picture

I'm just a layman in a backwater town in the mid-west, and don't quite get all the technical jargon. But I do understand one thing: while I'm not all that religious, it's you and people like you, as opposed to Lloyd Blankfein and Goldman Sachs who are doing "God's work".

Please, please keep it up.

Thu, 01/07/2010 - 15:50 | 185899 MsCreant
MsCreant's picture

+100 Very nice comment. I'm glad you said it.

Thu, 01/07/2010 - 14:35 | 185743 Careless Whisper
Careless Whisper's picture

Timmay was just doing his job at the Fed, which was, and is, to protect the big banks (the AIG counterparties). The problem is that banking cartel known as the Federal Reserve Bank.

I bring you President Andrew Jackson who said that the Bank of the U.S. (predecessor to the Fed) was unconstitutional and not compatible with justice;


Thu, 01/07/2010 - 14:56 | 185789 Anonymous
Anonymous's picture

OK, I'm a layman from a backwater town in the mid-west, and don't follow all the jargon here. But is it possible that this rule 2a-7 explains why it was possible to get AAA ratings for so much of this crap?

The key question for me has always been: "Does an asset get a AAA rating because it's "insured" (i.e. guaranteed) or does it get insured because it's rated AAA?

Is it possible that the underwriters of MBSs comprised largely of "no-doc" and "NINJA" mortgages knew that all they had to do was issue a single CDS, using their own firm's credit rating, to get a AAA rating.....then cover that one and go on to buy multiple CDSs to short the very instrument they were selling to suckers?

If that's the case, then I would think their protests that their disclosures of their initial short positions in the prospectuses can be shown up for the very frauds they were.

Or, am I missing something here ?

Thu, 01/07/2010 - 20:26 | 186292 Anonymous
Anonymous's picture

Watch the following William Black video to
discover how this worthless crap received a triple
A rating.

This video should answer your questions

Thu, 01/07/2010 - 22:21 | 186396 Ned Zeppelin
Ned Zeppelin's picture

Nope, you ain't missing anything. You got the gist of it.  Little rough around the edges, but you got it.

Thu, 01/07/2010 - 15:07 | 185816 Anonymous
Anonymous's picture

Where is Leo Kolivakis when you need him?

Thu, 01/07/2010 - 15:43 | 185884 carbonmutant
carbonmutant's picture

November 2010 we can take a way the cookie jar.

Thu, 01/07/2010 - 20:33 | 186300 Zippyin Annapolis
Zippyin Annapolis's picture

This is a complete rape of the US taxpayer and shareholder. Where are the plaintiff's lawyers?

Thu, 01/07/2010 - 23:15 | 186426 Great Depressio...
Great Depression Trader's picture

None of this surprises me at all considering what has happened in the last 2 years. Actually, if you look at human nature for the past 6000 years this is completely normal behavior.

Human society went from nomadic tribes to having demigod monarchs, then to divinely appointed monarchs. After several thousand years of having monarchs the idea of self rule was established. It started with the Romans in their republic, then died as rome turned monarchy again. The magna carta came into being in britain and the US constitution was born. Individual freedom hit its peak and is again in decline. It began with the creation of the federal reserve. Then soc security. Europe has fallen into socialist strangulation.

This crisis shows how society has reverted to a neofeudalist world.

Fri, 01/08/2010 - 01:33 | 186516 Biggvs
Biggvs's picture

Who's handwriting is shown on the documents shown above? Is it Timmah or not?

Sat, 01/09/2010 - 03:00 | 188143 Anonymous
Anonymous's picture

But...but... where is Geithner's name? And by the date these emails were being circulated, Geithner had been named to be Treasury Secretary, had recused himself, and was busy amending tax returns. Seems like it's worth doing the legwork before naming the names.

Mon, 01/11/2010 - 13:42 | 190006 Anonymous
Anonymous's picture

Lets not lose the focus on the real criminal here. Geithner is simply the bag man to the banksters - Federal Reserve. If we focus on simply Geithner, whom I wont deny should serve time and be punished for many and all of his crimes against America, but lets grab up Hank Paulson, Bernanke, Greenspan, etc. ALL of the aforementioned people have knowledge AND they have ALL lied to Congress while sworn to oath. Dont forget and lose sight on ALL the crooks inhabiting and/or buttering the bread of the Wall Street crooks.

Mon, 01/11/2010 - 22:56 | 190683 MsCreant
MsCreant's picture

I think the real problem is that the crime is treason. Lots and lots of treason. Do you know the penalty for that?

Tue, 01/12/2010 - 01:08 | 190804 Uncle Remus
Uncle Remus's picture

The new mantra - treason, treason, treason ...

¯ Let the bodies hit the floor... ¯


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