Bernanke Under Fire for AIG?

Pray, dude, that's all you have left...

Zimbabwe Ben is still slamming down phones over AIG OMG it makes him totally angry and stuff.

Business Week:

Federal Reserve Chairman Ben S. Bernanke sought to defuse allegations that the central bank tried to conceal details about the $182.3 billion bailout of American International Group Inc., calling for a review of Fed actions by congressional auditors.

In a letter yesterday to the Government Accountability Office, Bernanke pledged “all records and personnel necessary” for an audit. Separately, the New York Fed provided 250,000 pages of documents to a U.S. House committee in response to a Jan. 12 subpoena demanding all materials related to the decision to fully reimburse banks that bought protection from AIG.

Bernanke’s moves coincide with preparations by Senate Democrats to hold a vote this week on whether to confirm him to a second four-year term. Lawmakers stepped up inquiries about the Fed’s oversight of AIG after e-mails released this month showed that the New York Fed asked the company to withhold information from the public about payments to banks.

“Bernanke wants to do everything possible to dispel any doubt of any inappropriate actions related to AIG,” former Fed Governor Robert Heller said in an interview. An invitation to audit “will clear the air” and allow Bernanke to say “‘I’ve asked for a full GAO investigation,’” Heller said.

Chuck Young, a spokesman for the GAO in Washington, said the agency will review Bernanke’s request “in the context of our future work priorities,” including requests from congressional committees.

Listen, just make the NY Fed testify and tell all it knows about the AIG bailout. Throw Tim Geithner's bitch ass under the bus. Come on, ZB, it's your only hope. You know he did it. You didn't have shit to do with this.

As JDA loves to say, comin' for dat ass, bitch:

Federal Reserve Chairman Ben S. Bernanke and former Treasury Secretary Henry Paulson should answer questions in a House probe of bailout payments to American International Group Inc.’s trading partners, a Republican lawmaker said.

Bernanke and Paulson should provide statements about the decision to fully reimburse New York-based AIG’s bank counterparties for $62.1 billion in derivatives and efforts to limit disclosure about the payments, Darrell Issa, ranking member of the House Oversight and Government Reform Committee, said today in a letter. Treasury and the Federal Reserve should be subpoenaed for documents tied to the rescue, Issa said.

“This committee’s investigation will not be complete until we gain the perspective of all the most senior government officials responsible for the AIG bailout,” Issa said in the letter to Edolphus Towns, the New York Democrat who is chairman of the panel. “The perspective of Ben Bernanke and Hank Paulson and documents in the possession of the Federal Reserve Board and the Treasury Department are necessary.”

Speak now or forever hold your peace, Zimbabwe Ben.

Here's what yours truly thinks happened, and call me crazy if you like: Hank Paulson actually thought this shit would work. He also thought America (and the rest of the world) was too stupid to catch on. Whatever NY Fed did (if it involved 100% payouts to AIG counterparties or not), it did thinking your stupid ass wouldn't notice and actually believed the system would be "fixed" if only Goldman Sachs got a full payout on AIG exposure. Why would the sheep suddenly care? Financial instruments are so complex and stuff OMG it hurts my brain.

Numbers don't lie.

They must really think we're a bunch of morons. FAIL us?

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Anonymous said...

The head is ever the dupe of the heart.
- Francois Duc de la Rochefoucauld

People (voters) are pissed off at this moment not because of what their heads are telling them. Present company excluded, I'm talking about "the mob" here (no, not the mob as in the Mafia, I mean the mob as in a mob of heaving masses), the unwashed voting American afterall. Their hearts are telling them to be pissed off (finally).
Their collective bullshit detector is finally going off and now they are going to want some blood. Saavy politicians are starting to "get it". Somebody's going to have to be scourged at the pillar and put up on a cross.