While the lynch mob is concerned by the AIG bonuses, anybody cares about Tim Geithner’s 27 billion dollar gift to AIGFP CDS Counterparties?
Here is the evidence, there was NO basis whatsoever for the Fed to purchase the CDOs held by the counterparties listed below, all the Fed had to do was to fund the collateral call to cover mark-to-market losses. Even Gretchen Morgenson knows that “widespread defaults on the underlying debt have not occurred”.
Maiden Lane III Payments to AIGFP CDS Counterparties
Investigate Geithner, this tax crook/fraud. Hey libs – Obumer lied, what do you know?
Investigate Barny Frank’s bank accounts to see how much he swindled from Sallie/Freddie scam.
Demand Obama returns all of the money he received from AIG.
Investigate Nancy Pelosi for siding with illigal aliens desires rather than U.S. law.
Notice that this inept alzheimers case is writing OUR laws now.
consider the alternatives
http://www.liveleak.com/view?i=ca2_1234032281
acc:
It’s no big deal if the objective was to bury AIG, the Fed and Treasury did a great job on that count, they also made a lot of counter-party banks very happy since I doubt anyone of them expected to be relieved of their CDOs without concession on their part, all they wanted was mtm collateral and they had NO right to expect anything else.
So what’s the lesson? Buy CDS “insurance” from TBTF Inc and Tim Geithner will make you whole…
I don’t get what the big deal is. The Fed now owns the underlying, so if there is no default in the end the Fed gets the money. Yes, the Fed has changed the timing of its returns — but the whole point is the Fed is utterly indifferent to timing (unlike the private sector).
The only way I can understand your point of view is that you believe that the protection policy would have expired before the underlying blew up — but that the underlying is very likely to blow up several years down the line.
or impeach mk to mkt