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A series of articles about the AIG bailout trial thats underway
bronco2078
Posts: 9,964 ✭✭✭✭✭
At the moment there is a trial going on where Hank Greenburg former CEO of AIG is suing the government over the bailout of his company.
The idea that someone in his position would sue over a bailout is either ridiculed in the mainstream media or not mentioned at all.
At first blush it seemed ridiculous to me , but nakedcapitalism has run a series of posts about the ongoing trial and a lot of rocks are going to get turned over.
Part1 there was a Chinese buyout offer for AIG
Part 2 Paulson and Giethner forced AIG to take the bailout
Part 3 Paulson lied to congress about TARP
Morgan Stanley told Geithner it was going to file bankruptcy the week it became a bank
how the Fed usurped congress
Up to now all we really knew about this was the ridiculous fairy tale vomited up by noted wall street ball-washer Andrew Ross Sorkin . In which he tried to paint Paulson Gietner etc as doing the lords work and heroically saving AIG instead of what actually happened. They rammed through a deal which was designed to buy out bank debt at the expense of the taxpayer without giving any concessions to the taxpayer for having saved these fools. Normally if you are some sort of White Knight coming in to save a failed company you would be in a position to extract pretty much any concessions you desired.
The chinese offer was refused because Paulson knew that they would refuse to pay all the banks 100% and they all would have gone down without that. In the story the public has been fed the chinese offer was never mentioned anywhere.
The idea that someone in his position would sue over a bailout is either ridiculed in the mainstream media or not mentioned at all.
At first blush it seemed ridiculous to me , but nakedcapitalism has run a series of posts about the ongoing trial and a lot of rocks are going to get turned over.
Part1 there was a Chinese buyout offer for AIG
Part 2 Paulson and Giethner forced AIG to take the bailout
Part 3 Paulson lied to congress about TARP
Morgan Stanley told Geithner it was going to file bankruptcy the week it became a bank
how the Fed usurped congress
Up to now all we really knew about this was the ridiculous fairy tale vomited up by noted wall street ball-washer Andrew Ross Sorkin . In which he tried to paint Paulson Gietner etc as doing the lords work and heroically saving AIG instead of what actually happened. They rammed through a deal which was designed to buy out bank debt at the expense of the taxpayer without giving any concessions to the taxpayer for having saved these fools. Normally if you are some sort of White Knight coming in to save a failed company you would be in a position to extract pretty much any concessions you desired.
The chinese offer was refused because Paulson knew that they would refuse to pay all the banks 100% and they all would have gone down without that. In the story the public has been fed the chinese offer was never mentioned anywhere.
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Somehow, I think that there might be a connection here.
I knew it would happen.
<< <i>Didn't Goldman Sachs get a $15 billion payment from AIG that they wouldn't have otherwise received if AIG had been allowed to fail? Wasn't Paulson's previous job Managing Director at Goldman Sachs? Didn't Geithner deal directly with Goldman Sachs as his primary broker for selling US Treasuries when Geithner was head of NY Fed, which amounts to beaucoups revenue for Goldman Sachs for handling the transactions?
Somehow, I think that there might be a connection here. >>
Jmski52.....I think you read too much Zero Hedge
Nothing to see here. Just walk on by. The gun is still smoking but it was fired 6 years ago.
Roadrunner, you are right unless the government loses the case. I would say "fat chance" of that happening, except that the case is in the U.S. Court of Claims, which has a reputation for out of the box results.