More corruption in our banana republic

NY Fed official responsible for AIG loans joins AIG as AIG pushes sweetheart repurchase to NY Fed

Here’s the kicker. He is being allowed to stay on at his job at the Fed while working as a lobbyist for AIG on matters he deals with in his job at the Fed.

This is beyond conflict of interest. That this was permitted shows how deep the corruption and rot is in Washington.

NYT. Goldman pushed AIG to edge, profited mightily from it

NYT has a long, detailed timeline of what happened and when. Required reading.

Clusterstock is even blunter. Goldman Sachs Killed AIG, but then bizarrely says it was all AIG’s fault.

So it was just a coincidence those at the NY Fed and in the US government who gave Goldman such a sweetheart deal just happened to be Goldman alumni who forced AIG to pay off in full even when Goldman previously had said they’d settle for less. Imagine that.

Sue, a CPA and Certified Fraud Examiner, wants to know, what trading positions did they have at the time and did they personally profit from what happened?

Stephen Friedman certainly did. As chair of the NY Fed at the time and a Goldman director, he owned Goldman stock then bought more. He was forced to resign. And should have been indicted for insider trading or any number of felonies, IMHO.

How the AIG bailout worked

Chart from the fine folks at Clusterstock, who also brings us news that just-released AIG documents show Goldman was deeply involved in the collapse of AIG. These are the very same documents that the SEC ordered sealed on the utterly bogus grounds of “national security” but which got released because on the ongoing Congressional investigation. CreditWritedowns has the documents.

That $30 billion overpayment in the chart is money siphoned from the taxpayers to the banksters.