Here’s more investigative reporting into behind-the-scenes financial shenanigans, courtesy of Karl Denninger at The Market Ticker. – Ilene
FLASH: Liddy Lays An Egg On BERNANKE!
Ok, now this gets interesting.
In a hearing not covered by the so-called "mainstream media" but covered on Cspan, Liddy, AIG’s CEO, in response to a question by Rep Kaptur said:
"When The Fed set up Maiden Lane they took on responsibility for settlement of all of the CDS."
WHOAH!
Ok, now we’re getting into interesting territory.
Specifically, I quote: "The Federal Reserve decided we should pay 100 cents on the dollar", but Mr. Issa nailed the truth on this in a followup – they could have purchased those contracts for far less in the open market at the time.
The bottom line is that the testimony was that The Fed decided to settle the contracts in a non-economic manner that resulted in screwing the taxpayer by transferring more than $100 billion dollars of taxpayer money out to these banks when the cash value at the time was FAR LESS.
(Mr. Issa, by the way, is one of the Congressfolk who actually does understand securities – and it shows. He refused to let this go until he hammered it into the ground and got the answer in plain, irrefutable English.)
Bluntly – we got raped.
Is it any surprise that CNBC is refusing to cover this?
Is it any wonder how the banks managed to "report decent profits"?
The allegation just made by Liddy is that Bernanke and The Fed literally stole $100 billion dollars from you and I by intentionally and wantonly overpaying on the settlement of these contracts!
I want to see indictments; nothing less is sufficient any more.
