January 13, 2010

Geithner Represents the Banks


"You'll see why taxpayers sense something is very wrong about this story, and rightly so. As we're now learning by the day, Goldman nearly bankrupted AIG in the fall of 2008 -- much as YRC's credit default holders almost bankrupt that company last month. The key difference is that in AIG's case, the taxpayer was left holding the bag, while Goldman and AIG live to trade another day.

But it gets worse. Not only did AIG pay off those contracts to Goldman and a dozen other banks to the tune of 100 cents on the dollar -- or a remarkable $62 billion -- Geithner's NY Fed insisted AIG cross out any reference to the full price of the payout. As e-mails released by Congress last week show, the idea was to keep the public in the dark. The final cost to taxpayers from the AIG rescue -- $182 billion, or about half of the entire US defense budget."

http://www.nypost.com/p/news/business/treasury_sec_could_learn_from_teamster_5FgjrMUoX98EVMfptjoJfJ

Treasury secretary could learn from Teamster Hoffa
Hoffa shows Geithner how to run things
Terry Keenan
New York Post
Last Updated: 2:52 AM, January 12, 2010
Posted: 11:47 PM, January 9, 2010

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