Friday, January 08, 2010

Evidence Geithner lied about his role in transferring billions of taxpayer bailout funds to corporate cronies as head of NY Fed

Lawmakers call on Geithner to testify about concerns over AIG bailout
(The Hill) -- By Silla Brush

The Treasury secretary would be asked about whether government officials improperly pressured AIG during the bailout.

Democratic and Republican lawmakers on Friday called on Treasury Secretary Timothy Geithner to testify about whether government officials improperly pressured American International Group during the bailout.

Geithner has come under renewed criticism this week following concerns that the Federal Reserve instructed AIG not to disclose how billions of taxpayer dollars would be used during the bailout.

Geithner was head of the Federal Reserve Bank of New York at the time, but Meg Reilly, Treasury spokeswoman, said he had recused himself during those negotiations. The AIG bailout remains one of the most controversial aspects of the government's many efforts to support the financial industry and it continues to dog Geithner in particular.

AIG was crippled under tens of billions of dollars in soured derivatives transactions. Major American and foreign banks received tens of billions of dollars during the bailout of AIG and government watchdogs criticized the Fed for failing to negotiate better terms during the bailout.

In draft regulatory filings obtained by Rep. Darrell Issa (R-Calif.), Fed officials late in 2008 crossed out information that would have disclosed AIG's counterparties were being paid in full with taxpayer money...MORE...LINK

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Chris Moore comments:

This is fascism, plain and simple: interconnect big banks and big corporations with big government; put ex-corporate cronies like Geithner and Paulson in charge of the big bureaucracies "overseeing" and "regulating" the big corporations; engineer a pretext "emergency"; transfer taxpayer money through the big bureaucracies directly into the pockets of the big corporations under the guise of "preventing" economic "disaster"; repeat.

And beyond the banks, this goes on at the war profiteering level, where the "emergency" being engineered is the hyped up "terror" threat (which is the blowback result of militarist big government foreign policy in the first place) and the taxpayer wealth transfer is to military-industrial complex cronies.

Again, this phenomenon is objective fascism, and all of us, and our children, and our children’s children are being robbed blind, and will ultimately be economically enslaved by these fascist criminals and killers unless we put an end to all of this, pronto.

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