MSM Now Looking at AIG, Banks in Potential Fraud of Taxpayer Money


by Gayle Plato
 

GET THIS:  Barron’s believes the blogs may be onto something (we reported here yesterday) and is picking up on this odd little story of financial swapping.  It is potentially fraudulent and I suspect this issue could be the new Watergate.  Geithner and Obama are not patsies no matter what they might say as this comes out.  Maybe the bonuses were just hush money.  I dunno, I am just sayin':

http://blogs.barrons.com/stockstowatchtoday/2009/03/31/web-site-details-aigs-gift-to-banks-backhand-to-taxpayers/#comment-111951

 HERE IS POST EXERPT AS IT APPEARS-

 

Web Site Details AIG’s ‘Gift’ To Banks, Backhand To Taxpayers

If this is borne out, this one’s a game-changer. For the financial sector. For the government’s bailout plans. For the Administration’s leadership.

The website Seeking Alpha published an account Monday of a maneuver by American International Group (AIG) to: a) fraudulently capsize its balance sheet, in order to; b) force the government to pour more capital into the capsizing insurance giant, by; c) unwinding billions of dollars of credit transactions with banks that took the other side of those trades, in a way that; d) swelled those banks’ balance sheets with what was effectively a one-time gift, and; e) the Treasury knew about the scheme, and by; f) pumping the capital that AIG clamored for, gave its tacit approval.

(See the Seeking Alpha account here.)

Keep in mind, according to the Seeking Alpha account, this wasn’t a plan by AIG. This was an act: covert, at least from taxpayers – who, let’s be honest, aren’t going to understand the intricacies of sales of credit-linked notes – but overt, with the complicity of AIG executives, especially at its AIG-Financial Products unit, along with banks and Administration officials….

The result: AIG effectively transferred a huge chunk of its balance sheet to its banking counter-parties. The banks got a one-time shot-in-the-arm to their bottom line. An increasingly desperate AIG gets the capital it clamored for.”

 See related post: http://sonoranalliance.com/?p=3974

 


Comments

  1. Antifederalist says:

    On top of this, SIGTARP Neil Barofsky stated at a Senate Finance Committee hearing yesterday that up to $300 billion of fraud could be expected in the TARP. That’s 10%!!! If this isn’t a lesson to everyone, ESPECIALLY Dummycrats, that an expansive, all-powerful national government is bad, and that government can’t do ANYTHING right, then the masses are just benighted and have no business electing their leaders.

    I want to congratulate our Dummycrat Congress and the current socialist President and the former moderate President on what a fantastic job they’ve done giving all our tax dollars away to foreign and domestic banks. Woot! Yay for democracy and Dummycrats! And all of this right before we hit a massive wave of babyboomers retiring and eating up every dollar of tax revenue with entitlement spending (Social Security, Medicaid, and Medicare). I remind you that Obama wants to spend more than even Bush and the Republican Congress did. How are we going to pay for entitlement spending and all this debt? No way in the world that we can CUT SPENDING, especially when it comes to wasteful social programs! No! Let’s just raise taxes until we live in a socialist hell, expand the government! Woot! Yeah, I NEED the government to have more of my paycheck!

    Dummycrats are a virus, they’re dumb, they’re a threat to U.S. global supremacy and they should be exterminated like we’ve tried to do with polio or like any common household pest. Yes, that’s an extreme statement, but they’re absolutely killing this nation and telling the gullible masses all the while that they have the best course of action. It’s completely insane. What happens when we follow their course, they raise our taxes sky high, they’ve bloated the government like Jabba the Hutt, we’re paying the interest on the tens of Trillions we’ve borrowed AND the baby boomers are sucking up most of the budget in mandatory spending? Let me phrase this in terms leftists love: this is simply unsustainable. I think the answer is pretty simple: make draconian cuts in the budget (including entitlement spending), institute a low flat tax or fair tax, start retiring the debt, and disenfranchise anyone who has ever had a D next to their name and prevent them from holding office. And when the Rs start acting like Ds, disenfranchise them too and throw them out of office. I STILL think my idea of charging the military with staging a constitutional coup every time the government drifts too far to the left is a great idea. Turkey does this when its government becomes too Islamic.

  2. While you may go to a viral level of distain, there is a need to scrutinize without getting off balance. My only caution: anger and hateful talk gets us nowhere. It’s like the tea party craze-we need to stay non-partisan and clear on message.

    This is not about a dichotomy of politcal partisanship. We are starting a battle of principle and the war will be waged through our voices, demand for voter rights to change the process, and hopefully an awakened populus, now paying attention to the liberties and taxation grabs happening.

    Be careful about grumbling; it is counter-productive. My ‘power’ is through my ability to know and the knowledge I pass on. We must pay it forward.

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