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NY Fed’s Emails: Told AIG To Conceal Payment Info

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I’m going to make a wager with myself: I bet the emails I’m going to discuss in this post don’t make nearly the waves that the climate change denialists made sure were made regarding emails between climate scientists.  One set of emails clearly demonstrates a willful attempt to conceal things from people that shouldn’t have been concealed, especially at the time that they happened.  The other set of emails were normal correspondence between professional colleagues and had no effect on people’s lives.

Our current Treasury Secretary is Timothy Geithner.  He formerly was the head of the Federal Reserve Bank of New York.  In Dec. 2008, the NY Fed instructed AIG to cross out a reference to how much the insurer paid banks for credit-default swaps they had bought.  The story continues:

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.

One question is how involved was Mr. Geithner.  These activities have a very real sense of denying the disclosure of information that taxpayers deserve to have, since they were put on the hook to pay the banks in full for swaps AIG should have negotiated down in price.

Not for love of country, only for their party, some Cons in the House and Senate have been trying to build a case to attack Sec. Geithner and have him removed from his post in the Obama administration.  It’s becoming a troubling trend that no one in the corporate media is covering (Van Jones was the first target removed).  In this case, however, it would be in the Democrats’ best interest to pursue this matter regardless of where it leads them.  If Geithner was even tangentially involved in this mess, he doesn’t deserve an administration post.  Upward failure was a hallmark of the Bush years.  It should not be in the Obama administration also.

So, what should this be called?  Fedgate?  AIGgate?  Geithnergate?  Financegate?

The anti-science crowd and their corporate media stenographer allies were only too happy to jump on the conspiratorial bandwagon leading up to the Copenhagen Climate Conference last month.  No one has been charged with the illegal act of hacking into servers to get those emails, either.  Again, it won’t be out of principle, but I bet the corporate stenographers don’t jump on this particular bandwagon.  It wouldn’t look good to go after the financial elite, after all.


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