This video is a conversation between FOXNews’ Shep Smith and Judge Andrew Napolitano. The situation is that Tim Geithner, Secretary of the Treasury, could be facing legal charges because he, as the President of the Federal Reserve Bank in November 2008, may have instructed AIG to falsify documents in the processing of the $85 billion government bailout of the company.
In the paperwork for the bailout, AIG said we owe “X” dollars to Goldman Sachs, and we plan to pay that money back 100 cents on the dollar.
Some of that paperwork may have been falsified at Tim Geithner’s direction. Note I said “may.” Emails were obtained by Rep. Darrell Issa (R-CA).
The New York Fed crossed out the
reference [to repaying 100 cents on the dollar], according to the e-mails, and AIG excluded the
language when the filing was made public on Dec. 24, 2008.
Federal Reserve lawyers say they were told to strike the disclosure of the 100% repayment by AIG to Goldman Sachs, to conceal it from the Treasury Department and to the public. Judge Napolitano says this is a politically toxic issue: Goldman Sachs making a fortune…100 cents on the dollar…with federal funds.
If you borrow $185 billion dollars and you falsify a document, you can go to jail. Napolitano said that Bloomberg is reporting that Geithner was one of those instructing the forms to be falsified.
Shep asks if the information was only kept from the public, but not the Treasury…what then? Napolitano says if that is the case, Geithner’s actions may be seen as political wisdom.
Issa request the emails from AIG after Bloomberg reported that “the New York Fed ordered the crippled insurer NOT TO NEGOTIATE FOR DISCOUNTS IN SETTLING THE SWAPS [repayment]. The decision to pay te banks in full may have cost AIG, and thus taxpayers, at least $13 billion, based on the discount the insurer was seeking.”
Rep. Barney Frank (D-Mass) says the emails are “troubling.” He approves of a Congressional Review. That should give Barney et al plenty of time to figure out how to get Geithner out of this.
A spokeswoman for Geithner said the Secretary “played no role in these decisions.” “He was recused from working on issues involving specific companies, including AIG” after his nomination for Treasury.
This is a great video and I thank my friend Ray at ChicagoRayReports for letting me steal it from him. Hang to the end to hear about Henry Paulson.