Geithner responsible for overpayments that put billions of extra tax dollars in Banksters pockets

[earth mom]

Geithner Singled Out In TARP Watchdog Neil Barofsky's Scathing Report On AIG Bailout

First Posted: 11-16-09 09:36 PM | Updated: 11-17-09 02:25 AM

by Shahien Nasiripour

A brutal report issued Monday by a government watchdog holds Timothy Geithner -- then the head of the Federal Reserve Bank of New York and now the nation's Treasury Secretary -- responsible for overpayments that put billions of extra tax dollars in the coffers of major Wall Street firms, most notably Goldman Sachs.

The authoritative new narrative describes how, while bailing out insurance giant AIG last fall, a team led by Geithner failed nearly every step of the way.

Instead of bargaining with AIG's numerous counterparties to resolve its billions of dollars in souring derivatives contracts, Geithner's team ended up paying top dollar for toxic assets -- "an amount far above their market value at the time," the report notes.

<snip>

Wall Street firms like Goldman Sachs, Merrill Lynch and Wachovia got full value for their derivatives contracts with AIG, and taxpayers got the bill. In total, $27.1 billion of public money was transferred to companies that did business with AIG.

http://www.huffingtonpost.com/2009/11/16/aig-bailout-government-ov_n_359919.html

[notadmblnd]

1. I wonder how many more billions of dollars need to go missing before

they toss the bum out?

[chimpymustgo]

5. He is doing exactly what he was hired to do. And we can't do shit about it. We got CHANGE.

[SammyWinstonJack]

9. Obama is 'da Man'!

:rofl:

[chill_wind]

2. Ain't that something?

See this Geithner thread, too.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4149384#top

K & R.

[Vidar]

3. Geithner should be sharing a cell with Bernie Madoff.

[earth mom]

8. Totally agree... along with the rest of the Banksters! They'd have to build a new prison

to fit them all in! :grr:

[democracy1st]

4. Goldman Sachs admin ,Pres needs heat for this pick

[G_j]

6. Geithner’s Fed Made AIG Pay Banks to the Max

http://www.truthdig.com/eartotheground/item/20091028_geithners_fed_ordered_aig_to_overpay_banks/?ln


Geithner’s Fed Made AIG Pay Banks to the Max
Posted on Oct 28, 2009


White House / Pete Souza

That Timothy Geithner must love the big banks he spends all day talking to. Back when he was in charge of things, the Federal Reserve Bank of New York forced AIG to pay off Wall Street tycoons for all those toxic bets, even though the mega-insurer was busy trying to negotiate a better deal.

Goldman Sachs alone got $14 billion that will never be recouped by taxpayers, who shelled out $180 billion to keep AIG from going under.

So, despite dodging his taxes, failing to regulate Wall Street as it destroyed the global economy and worrying more about reckless bankers than cash-strapped taxpayers, Geithner got promoted to run the American economy.

How is it that real unemployment is at 17 percent and this guy still has a job? —PZS

Washington Post:

The Federal Reserve Bank of New York said Tuesday that it had no choice but to instruct American International Group last November to reimburse the full amount of what it owed to big banks on derivatives contracts, a move that ended months of effort by the insurance giant to negotiate lower payments.

Fed officials offered the explanation in a rare response to a media report after Bloomberg News said that the New York Fed, led at the time by then-President Timothy F. Geithner, directed AIG to make the payments after it received a massive government bailout. The officials said AIG lost its leverage in demanding a better deal once the company had been saved from bankruptcy.

Read more

[adamuu]

7. New York Times, Business : Audit Faults New York Fed in A.I.G. Bailout by Mary Williams Walsh

Audit Faults New York Fed in A.I.G. Bailout
By MARY WILLIAMS WALSH
Published: November 16, 2009
snip

But UBS’s good-faith gesture was quickly drowned out by Goldman Sachs and the top French bank regulator. They argued, with others, that it would be improper and perhaps even criminal to force A.I.G.’s trading partners to bear losses outside of bankruptcy court.

The banks and the regulator were confident that the New York Fed was not willing to push A.I.G. into bankruptcy, because earlier in the fall the New York Fed had stepped in with $85 billion to prop up the insurer.

The New York Fed, led then by Timothy F. Geithner, who is now the Treasury secretary, therefore had little leverage in the negotiations, according to a post-mortem of what has emerged as the most inflammatory episode in the rescue of A.I.G.

snip

[branders seine]

10. Why did President Obama hand over the keys to our treasury

to Goldman Sachs? Does he not realize they are criminal scum? (Or maybe just conveniently incompetent in whatever way happens to make more money for themselves...)

[earth mom]

11. Good question. And why is the entire population not demanding an answer to that question? nt

[sendero]

12. Come on..

.... this was not bungling, this was looting. This was no accident folks.

[earth mom]

13. Banksters = Gangsters. nt

[Nikki Stone1]

16. YES!

:grr:

[amborin]

14. Paul Krugman said all this many months ago

[Sebastian Doyle]

15. Go back to your hollow tree Timmy.

Your family could use the help, it's almost Christmas cookie season.