Quote:Geithner’s New York Fed Told AIG to Limit Swaps Disclosure

Jan. 7 (Bloomberg) -- The Federal Reserve Bank of New York, then led by Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis, e-mails between the company and its regulator show.

AIG said in a draft of a regulatory filing that the insurer paid banks, which included Goldman Sachs Group Inc. and Societe Generale SA, 100 cents on the dollar for credit-default swaps they bought from the firm. The New York Fed crossed out the reference, according to the e-mails, and AIG excluded the language when the filing was made public on Dec. 24, 2008. The e-mails were obtained by Representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.

The New York Fed took over negotiations between AIG and the banks in November 2008 as losses on the swaps, which were contracts tied to subprime home loans, threatened to swamp the insurer weeks after its taxpayer-funded rescue. The regulator decided that Goldman Sachs and more than a dozen banks would be fully repaid for $62.1 billion of the swaps, prompting lawmakers to call the AIG rescue a “backdoor bailout” of financial firms.

http://news.yahoo.com/s/bloomberg/201001...ivw4igkv38

If this is true and substantiated, Geithner should be under indictment.

(01-07-2010 01:13 PM)SumOfAllFears Wrote:  If this is true and substantiated, Geithner should be under indictment.

No joke.

Book'em Dan-o.

Cool, this is the type of insider info we need in the department.

(Rebels insult in 3..............2.............)

cb, you never add anything remotely relevant to any discussion in the spin room. All you seem to want to do is antagonize other posters. Get off the porch and add something worthwhile. Or just don't bother posting at all.