Most truly important news goes unheralded, having been either skewed by media bias, or totally ignored. We post a few vital Unheralded News stories each day which you will find on our site, and we have chosen this one to interpret:
http://www.bloomberg.com/apps/news?pid=20601087&sid=awiPvRbKoabA&refer=home
Review by EditorCE (update)
$170 Billion Bailout Flowed Secretly Through AIG to Goldman Sachs, Others
Who is Goldman Sacks? It may be the wealthiest broker in the USA, and its stock sells for almost $100.00 per share. But that did not stop it from taking a hidden $12.6 billion dollar bailout from the American consumers, some of whom are unemployed and have lost their homes.
The enormous, secret bailout of American International Group (AGI) permitted it to flow through $12.6 billion to pay a debt to Goldman Sachs, $8.1 billion of which was to cover AIG-backed credit derivatives, according to Thomas Edsall, writing for the "Huntington Post" on March 17.
Goldman Sachs has succeeded in moving several former employees into the Treasury department, including Robert Rubin, Henry Paulson, who managed the gifts in question, and presently Neel T. Kashkari. Goldman now is exposed, its whole arm in the Washington cookie jar.
Last weekend, AIG (American International Group) disclosed more about "which of its customers, or counterparties, received funds provided by the U.S. bailout."
Bloomberg reported details in this story and reported that some $90 billion was secretly passed thought AIG to others. Worse yet, the story is being cleverly hushed up, and replaced by a noisy effort to get back a few million in bonuses from AIG executives, who did the dirty work.
Hugh Son and Robert Schmidt reported that the the Federal Reserve Bank ordered AIG not to tell, but now under pressure of subpoena, they did tell, at least a little!
Further, "AIG has faced pressure to disclose more on its operations since the U.S. took a stake of almost 80 percent last year. Yesterday, AIG named at least 20 banks that received money to avoid losses after buying credit-default swaps from the insurer. The derivatives almost bankrupted AIG, and the bonuses Obama cited went to employees who created or sold them."
According to Bloomberg's reporters, the stupendous $170 billion bailout flowed through AIG. "Banks got $22.4 billion in collateral, $27.1 billion in payments from a U.S. entity to retire credit-default swaps and $43.7 billion tied to the securities-lending program, AIG said in a statement."
And it gets worse, as this story, by Hugh Son and Robert Schmidt, tells us: "Goldman Sachs Group Inc. led beneficiaries, with $12.9 billion, followed by Societe Generale SA, France’s No. 3 bank, with $11.9 billion, and Deutsche Bank AG, Germany’s biggest lender, with $11.8 billion."
"AIG and the Fed had previously refused to reveal the counterparties, saying the contracts were confidential and that the information could damage AIG’s business prospects."
Some of the money which we were told was being given to bail out AIG was in fact funneled to state governments, says the Bloomberg report: "States, including California and Virginia, got $12.1 billion tied to guaranteed investment contracts."
Now look at some of the players who arranged this, or are covering for those who did. Timothy Geithner, the guardian of our "Treasury" is the former President of the the FED's New York and controlling branch. Henry Paulson, who just retired from running the Bush bailout program before Geithner took over, is the former CEO of Goldman Sachs, so if Paulson did not benefit, his friends in his former business at Goldman Sachs did to the tune of $12.9 billion (that is billions with nine zeros). Other former Goldman employees are advisers to the President and in the Administration.
If you readers will apply a little arithmetic you will find the amount that went to Goldman Sachs (only the tip of the iceberg mind you) is about 80 times as much as all the bonuses paid to all the AIG employees combined. So why isn't Congress shouting about the secret dollar transfer to the international bankers?
The bank's names, except for Goldman Sachs, are not even familiar to us, all hidden from Congress and the public until Andrew Cuomo put some pressure on AIG executive to disclose. Just think about this; Paulson, and or the FED ordered AIG employees to give over $90 of the $170 billion to organizations the Congress knew nothing about, and kept it secret! Now Congress finds out, muffles the story and does nothing?
I agree the bonuses to AIG employees are vial and obnoxious pay-offs for covering up greater crimes. These millions are petty cash compared to the hidden hundred billion dollars given to the banks...banks and brokers that Congress should be suing for return of the money.
Furthermore, we can now be sure Congress knows about this scam because on March 16, according to Hugh Son and Robert Schmidt, Elijah Cummings, a Maryland Democrat on the House Oversight Committee, told them:
“I was happy to see that AIG finally handed over the counterparty information we’ve been requesting for months...I am deeply concerned that Goldman Sachs received so much money from AIG considering the relationships between the two companies. We will certainly be investigating this further to ensure that this is merely a coincidence.â€
Congress can not say they don't know, so why has Congress mysteriously shut up about this "coincidence." Instead it concentrates on a few hundred million given to AIG employees, probably to shut them up about where the real money went. Let us understand what happened. AIG apparently infected its banker pals with its ill conceived, real estate derivative investments. So major investment houses, the ultimate investment pros, got stuck with billions of these bad investments and we have paid them back their losses.
Where are the taxpayer's yachts?
The US Taxpayer has secretly been charged for the broker's bad investments through a secret conduit... hidden from Congress and the public...what more do we need to know?
We must DEMAND that Congress get our billions back from the bankers, not to mention the small millions paid to executives for doing the dirty work! None of this was ever approved by our Congress...so why are they afraid to bring it up...are they intimidated too, or is the entire congress on the take? Call your Congressmen and read this letter to him, or his aid.
-Charles E. Carlson
We Hold These Truths
Project Strait Gate
PO Box 14491
Scottsdale, AZ, 85267
http://www.whtt.org
480 947 3329
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