- Feb 12, 2007
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Finally, some real bipartisanship in DC. Goldman Alum Hank Paulson and head of the NY Federal Reserve Timothy Geithner appear to have colluded to fleece U.S. taxpayers of TARP funds to bail out AIG for 100 cents on the dollar (for assets with a fraction of that value in an open market place). Most of the money went over seas.
he initial $85 billion to bail out AIG was supplemented by an additional $49.1 billion from the Troubled Asset Relief Program, known as TARP, as well as additional funds from the Federal Reserve. AIG's debt to U.S. taxpayers totals $133.3 billion outstanding.
"The only thing I can tell you is that people have the right to know, and the Fed and the public's business ought to be more public," Grassley said.
The list of companies receiving money includes a few familiar foreign banks, such as the Royal Bank of Scotland and Barclays.
DZ AG Deutsche Zantrake Genossenschaftz Bank, a German cooperative banking group, received $1.2 billion, more than a quarter of the money Goldman paid out.
Warren, in testimony Wednesday, said that the rescue of AIG "distorted the marketplace by turning AIG's risky bets into fully guaranteed transactions. Instead of forcing AIG and its counterparties to bear the costs of the company's failure, the government shifted those costs in full onto taxpayers."
Grassley stressed the importance of transparency in the marketplace, as well as in the government's actions.
"Just like the government, markets need more transparency, and consequently this is some of that transparency because we've got to rebuild confidence to make the markets work properly," Grassley said.
AIG received the bailout of $85 billion at the discretion of the Federal Reserve Bank of New York, which was led at the time by Timothy Geithner. He now is U.S. treasury secretary....
Goldman reveals where bailout cash went - USATODAY.com
he initial $85 billion to bail out AIG was supplemented by an additional $49.1 billion from the Troubled Asset Relief Program, known as TARP, as well as additional funds from the Federal Reserve. AIG's debt to U.S. taxpayers totals $133.3 billion outstanding.
"The only thing I can tell you is that people have the right to know, and the Fed and the public's business ought to be more public," Grassley said.
The list of companies receiving money includes a few familiar foreign banks, such as the Royal Bank of Scotland and Barclays.
DZ AG Deutsche Zantrake Genossenschaftz Bank, a German cooperative banking group, received $1.2 billion, more than a quarter of the money Goldman paid out.
Warren, in testimony Wednesday, said that the rescue of AIG "distorted the marketplace by turning AIG's risky bets into fully guaranteed transactions. Instead of forcing AIG and its counterparties to bear the costs of the company's failure, the government shifted those costs in full onto taxpayers."
Grassley stressed the importance of transparency in the marketplace, as well as in the government's actions.
"Just like the government, markets need more transparency, and consequently this is some of that transparency because we've got to rebuild confidence to make the markets work properly," Grassley said.
AIG received the bailout of $85 billion at the discretion of the Federal Reserve Bank of New York, which was led at the time by Timothy Geithner. He now is U.S. treasury secretary....
Goldman reveals where bailout cash went - USATODAY.com
