Showing posts with label AIG. Show all posts
Showing posts with label AIG. Show all posts

Thursday, May 1, 2014

AIG having a bit of Internet trouble?

Got this from an anonymous source....  -AK



Saturday, August 17, 2013

US files appeal to block Bernanke from testifying in AIG case



US files appeal to block Bernanke from testifying in AIG case
Published: Friday, 16 Aug 2013 | 5:39 PM ET

The U.S. Justice Department on Friday asked an appeals court to reverse a judge's ruling last month that Federal Reserve Chairman Ben Bernanke must testify in a lawsuit about American International Group's 2008 bailout.

Bernanke cannot be forced to sit for a deposition because high-ranking U.S. government officials are generally protected from getting drawn into time-consuming civil litigation, the Justice Department said in its petition.

The petition was filed in the U.S. Court of Appeals for the Federal Circuit in Washington.

"The demands of civil litigation, if not appropriately limited by the courts, will impair the ability of senior government officials to lead the departments and agencies for which they are responsible," the petition said.

Parties to a lawsuit also do not have the right to depose agency officials to cross-examine the basis of their decisions, the Justice Department argued.

Former AIG chief Maurice "Hank" Greenberg's Starr International Co. is suing the U.S. government for allegedly short-changing AIG shareholders by tens of billions of dollars during the bailout.

Starr was once AIG's largest shareholder, with a 12 percent stake.

Alanna Rutherford, a lawyer for Starr, said in response to the government's filing: "It's disappointing that the government seeks to delay discovery of the facts in this important case."




US judge says ex-AIG CEO can depose Bernanke over bailout

Published: Monday, 29 Jul 2013 | 10:43 AM ET
By: Reuters with CNBC.com

Federal Reserve Chairman Ben Bernanke should testify in the lawsuit by American International Group Inc's former chief Maurice "Hank" Greenberg against the United States over the insurer's 2008 bailout, a judge ruled on Monday.

Judge Thomas Wheeler of the U.S. Court of Federal Claims rejected the government's effort to keep Bernanke from being deposed, saying the Fed chairman was a "central figure" in the decision to bail out AIG.

"Indeed, the court cannot fathom having to decide this multi-billion dollar claim without the testimony of such a key government decision maker," Wheeler wrote. "These facts constitute 'extraordinary circumstances' for the taking of Mr. Bernanke's deposition."

The Justice Department declined to comment on the ruling. A Fed spokesman declined to comment.

"Because of Mr. Bernanke’s personal involvement in the decision-making process to bail out AIG, it is improbable that Plaintiff would be able to obtain the same testimony or evidence from other persons or sources."
Thomas Wheeler
Federal judge

Greenberg's Starr International Co, which once had a 12 percent stake in AIG, is suing over the government's taking of a 79.9 percent stake in the insurer in September 2008 and a separate 1-for-20 reverse stock split in June 2009.

Greenberg's attorney, Alanna Rutherford of Boies, Schiller & Flexner, said his team was pleased with the judge's decision.

Earlier this year Greenberg tried to force AIG to join his suit against the government over the $182.3 billion bailout, an effort the company ultimately rejected.

Greenberg is seeking tens of billions of dollars in compensation over the losses he incurred when the government rescued the company.

"Because of Mr. Bernanke's personal involvement in the decision-making process to bail out AIG, it is improbable that Plaintiff would be able to obtain the same testimony or evidence from other persons or sources," Wheeler wrote in his four-page order.
Wheeler said the court would extend "appropriate deference and courtesies" to Bernanke in scheduling the testimony; the judge also said he would attend the deposition himself.

It is tentatively scheduled for Aug. 16, the order noted.

Will Bernanke take the stand?
Hon. Richard Holwell, former Federal judge, explains why it's "a little unusual" for the Fed's chairman to be deposed in a suit involving the 2008 bailout of AIG.

The government had argued that details about Bernanke's role could be obtained elsewhere, such as meeting minutes from the Fed's Board of Governors, and that high-ranking U.S. officials in general should not be deposed over their official actions. It also said a deposition would distract Bernanke from overseeing the nation's economy and fiscal policy.

Wheeler, however, said it is "relatively routine" for top government officials to testify in Court of Federal Claims cases when they have personal knowledge of relevant information.

The court sits in Washington, D.C., and handles lawsuits seeking money from the government.

According to Wheeler, officials who have testified have included Dick Cheney, then secretary of defense; Andrew Cuomo, then secretary of housing and urban development; and General Colin Powell, then chairman of the Joint Chiefs of Staff.

Sunday, July 29, 2012

Tim Geithner Admits Banks Bailed Out
Using Rigged LIBOR Interest Rate,
Costing Taxpayers Billions

Tim Geithner Admits Banks Bailed Out With Rigged Libor, Costing Taxpayers Huge Amount
Posted: 07/25/2012 11:06 am

Timothy Geithner claimed on Wednesday that the government had no choice during the financial crisis but to lend to banks and AIG using an interest rate, Libor, that everybody knew was flawed.

Call it a back-door bailout: By using an artificially low Libor, the government saved the banks and AIG millions, maybe billions -- and cost the taxpayers the same amount.

The use of Libor in the bailouts also rubber-stamped that hopelessly manipulated interest rate as a market measure, raising still more questions about just how worried Geithner and other regulators really were about it.

In a House Financial Services Committee hearing on Wednesday, Treasury Secretary Geithner was asked why Treasury and the Fed used the London Interbank Offered Rate as a basis for loans to insurance giant American International Group and to U.S. banks under the Term Asset-Backed Securities Loan Facility -- even though Geithner and other regulators had long suspected that Libor was artificially low, as Geithner testified.

"We were in the position of investors around the world," Geithner shrugged. "You have to choose a rate, and we did what everybody did -- use the best rate available at the time."

Geithner repeated his claim that he warned other U.S. and British regulators in the spring of 2008 about possible manipulation of the key interest rate and recommended changes to the way the rate was set.

But he also said that, months later, when it came time to set bailout terms for the Too Big To Fail Set, the government just had no other choice but to use Libor.

Sure, that's one way to look at it. Another, less charitable way to look at it is that the Fed was fully aware that Libor was being manipulated lower, and was fine charging an artificially low rate to lend money to banks and to AIG, in what amounted to yet another kind of bailout. Why make life harder for them, right? They had enough problems dealing with the crisis they had created. Raising red flags about Libor might have only made the crisis worse, making it harder for banks to borrow money.

Wednesday, February 29, 2012

Timmy's Troubles

Updated March 3, 2012
Created February 27, 2012
Former Forbes Asia desk editor Ben Fulford wrote:
"As predicted, the collapse of the Satan worshipping financial mafia is accelerating. U.S. Treasury Secretary Timothy Geithner was detained for questioning by New York police on February 24th and was released after giving evidence about many high level financial criminals, according to New York police sources. “In most cases we have to slap people to get them to talk but in his case we had to slap him to shut him up,” one of the interrogators joked. Geithner has been released but is accompanied at all times by an armed deputy to make sure he does not leave the country."