Explosive emails released last week could see Treasury secretary Timothy Geithner become embroiled in criminal charges for his role in a cover up that exposes the monumental criminality behind the $182.3 billion bailout of American International Group Inc.
In November and December 2008, The Federal Reserve Bank of New York instructed the bailed out AIG to hide from the public details regarding payments the insurance giant made to banks, including Goldman Sachs Group Inc. and Societe Generale SA.
Using Fed secured taxpayer bailout money, AIG paid several banks 100 percent of the face value of credit-default swaps, as other financial institutions were negotiating deep discounts for the unregulated paper assets that do not have to be backed by cash.
The decision to pay the banks in full may have cost AIG, and therefore taxpayers, at least $13 billion over the odds.
Judge Napolitano explains:
Bawney Fwank, chaiwman of the House Committee on Financial Services, released this statement in Geithner’s defense:
Frank retains confidence in Treasury Secretary Timothy Geithner, who led the New York Fed at the time, he said today in a Bloomberg Television interview…
“Did they have the authority to tell AIG to pay less than 100 percent or not?” Frank said. “That’s an interesting debate. But the important point to make is that we are making sure that that debate will never happen again.”
Fwank went on to say:
When we walk with the Geithnew in the light of His Word,
What a glowy He sheds on our way!
While we do His good will, He abides with us still,
And with all who will twust and obey.
Twust and obey, fow thewe’s no othew way
To be happy in Geithnew, but to twust and obey.
After which ABC, CBS, NBC, CNN, and MNSBC swore a solemn oath to Geithner and promised to trust and obey his almighty leadership without question.
The NYT trotted out Keynesian guru Krudman who then informed the public that being openly looted for 13 billion is actually a good thing because it creates jobs for poor working class families.