Fed Aig News Today

Generated avatars. >> sounds like a heck of a platform youre running on. the one thing i have noticed is corporations are much better at making money when they just exploit their ability to control the government as opposed to having to compete with other individuals to deliver a quality product. are you doing this because you find it easier to rig the game using the government than to actually produce something of quality or value for another human being? >> well, we to believe in privatizing g...

Relationship with aig when he testified recently and get your sense as to whether hes in fact being transparent with us. take a listen to the treasury secretary. >> if you join with the president in adopting his sibility fee, american taxpayers will not have to pay one cent for the actions we took on aig or the actions we took with the authority congress gave the administration to stabilize this financial crisis. we expected this particular transaction, the one, the very one that is the heart of...

Third, we should be taking a good look at goldman and aig, and the other treasury programs, where we began -- where i suggested we begin is the aig corporate e-mails itself. from there, it would radiate out to all the companies. but goldman has been at the heart of this. the numbers that i think are staggering, we gave goldman $4.9 billion in that transaction in the aig deal that has so rightly been heavily criticized. the entirety of their profit, that one transfer from taxpayers, which neil ba...

Related to the new york federal reserve that were provided to congress. why the discrepancy and where do you stand relative to the fed aig and goldman? >> thats absolutely correct. and the question of why the one were going to find out the answer. because we did request certain documents from the federal reserve, and the federal reserve bank of new york. we didnt receive them. and then after documents started getting released, we found out there was a whole bunch of documents in there that we ha...

Its left us with an explicit guarantee that no matter whaps, that these companies are now incentivized knowing that the taxpayer is going to back them up. that is an enormous problem. the fact that the t.a.r.p. got extended and while with dont criticize that as a policy decision, that sends a message to wall street that the secretarys going to keep several hundred billion dollar war chest available for any future bailouts, at least through october of this year. >> if you fundamentally believe al...

The skurlts. and what the secretary stated and what the treasury department is talking about is the payments to aig counterparties were really in two parts. in one part was part of a federal reserve loan. and the other part was collateral payments, payments made separately by aig. on the one part, on the federal reserve part, it is true that that portion of the loan, a little bit less than half, will probably get paid back with interest. the other part is really inextricably combined with the ot...

A second. >> thats exactly right. weve had a little more than 75 investigations. they really run the full gamut of what you would expect. as we discussed before, the t.a.r.p. is really ten different programs right now. for example, if a bank or financial institution was cooking its books or committing accounting fraud when they applied for t.a.r.p. funds, that falls squarely within our jurisdiction. we have a number of investigations into banks that were basically lying to get t.a.r.p. funds. mo...