Edward Harrison, 01.12.10, 04:20 PM EST
What really happened to AIG and other bankrupt firms.
It has come to light recently that American International Group withheld important information about its dealings with financial counterparties in the lead-up to its collapse and bailout by the Federal Reserve. What is most troubling about this episode is that it was officials at the Federal Reserve Bank of New York–not AIG–who seem to have orchestrated the secretive and potentially illegal activities. Moreover, the actions by the regulator were uncovered only through an investigation conducted on behalf of the House Oversight and Government Reform Committee. Were it not for the doggedness of the committee’s ranking Republican member, Darrell Issa of California, the public would be none the wiser.
Is this what it has come to in America: Public officials making policy via cover-ups, secret deals and government coercion? It seems so. If we don’t demand a full investigation into this type of behavior and criminal prosecution where appropriate, we should expect more of the same in the future.
Filed under: banks, Economy, Elite Wealth, Federal Reserve Bank, Government, Obama Administration, Past Presidents, Stock Market, Wall Street | Tagged: aig, america, banks, crisis, Economy, Federal Reserve, finance, Government, Manipulation, Obama Administration, President Obama, Stock Market, treasury | Leave a comment »