How Goldman Sachs Created ‘Shitty’ CDOs, Sold Them To AIG, Forced AIG Into Bankruptcy, Got A $20 Billion Bailout, Paid Themselves Billions In Bonuses, And Watched As Tim Geithner Covered It All Up

July 31, 2012 By 5 Comments

Our favorite Turbo Tax expert and NY Fed Libor fixer is back in the news.

Lawmakers said the former head of the New York Federal Reserve Bank had presided over a backdoor bailout of Wall Street firms and a coverup. Geithner countered that he had acted properly to avert the collapse of the financial system.
The New York Fed, which secretly engineered the bailout, prevented the full publication of the document for more than a year, even when AIG wanted it released.

From the Daily Bail:
And Paulson was CEO at the time and knew all about it. More truth about lack of Fed transparency. This is not entirely new if you’ve been following the work we’ve published from Janet Tavakoli, who is quoted extensively in the article below. Still, it underscores some of the more arcane points and delves into new territory with discussion of CDO substitutions. Easy to follow summary piece from Bloomberg’s Richard Teitelbaum.

Here’s what you need to take from this: Goldman put together crappy CDO’s, bought Credit Default Swap protection (insurance) from AIG, pushed AIG into bankruptcy by making claims on the insurance, and then got paid — not by AIG — but by the TAXPAYER.

Oh, and the guy who tried to cover all this up? Barack Obama picked him to be your Treasury Secretary. Is this a great country, or what?
Read more:


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Comments

  1. Avatar of lynnybee lynnybee says:
    July 31, 2012 at 4:09 PM

    it’s just all so sick.   these people are sick.   the country is being systematically and deliberately with malice and forethought LOOTED!    these s.o.b.’s need to be tried for treason.  

  2. Avatar of AGXIIK AGXIIK says:
    July 31, 2012 at 6:09 PM

    the fish rots from the head.   DC, Wall Street   it’s all the same

  3. Avatar of PatFields PatFields says:
    July 31, 2012 at 8:02 PM

    The ONLY way out from Peoples’ labor being plundered by these crooks is to use an entirely separate money than what they ‘provide’. The bankers have lawful right to charge interest on it and government has lawful authority to tax it because, together, they’re the sole (joint) ’creators’ of it. Together they have full ’intellectual title’ in it. Neither has  grounds of claim against anyone using something else for making exchanges, as long as it has no resemblance to the elements they hold title in, such as appearance and nomenclature.

    Both whiz-bang intellectuals and dullards alike can’t believe this is true, for the exact same reason … it’s just too plainly simple! But ,,, there you go! It really is!

  4. Avatar of silvermeddler silvermeddler says:
    July 31, 2012 at 8:13 PM

    The Daily Bail is reprinting a Bloomberg article from 2010 (follow the link on the author’s name “By Richard Tietelbaum”), so I’m not really sure how this qualifies as news, unless you’re really into old news.

  5. Avatar of Ed_B Ed_B says:
    August 1, 2012 at 12:39 AM

    Geithner countered that he had acted properly to avert the collapse of the financial system.

    Isn’t this excuse getting more than a little long in the tooth?  Besides, criminal enterprises like this not only should be allowed to collapse, they should be encouraged to do so… and sooner rather than later!

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