January 10, 2010
The White House Stands Behind Geithner, Says Tim Was Not Involved In AIG Email Fiasco is the headline of a recent post at Zero Hedge. Barack Obama is standing behind Tim Geithner. I remain unconvinced.
This is the second time Secretary Geithner has done his “A Few Good Men” routine; and, judging from the uniformly negative response, it is another “deeply unpopular, deeply hard to understand” thing.
All of this is a bit cryptic. We deserve to know more as to why the Fed specifically wanted AIG’s synthetic CDO structures not to be revealed to the public and what role Tim Geithner specifically played in this incident. Was he involved in keeping the 100 cents on the dollar payments from the public?
Secretary, I have just one more question. If you gave an order that synthetic CDO structures weren’t to be discussed because they were irrelevant and your orders are always followed, then why were relevant bits of information crossed off on this memo?
Note that there should be no discussion or suggestion that AIG and the NY Fed are asking to structure anything else at this point.
Given that the disclosure describes the key amendment (i.e, updating the schedule to reflect the additional $ exposure, is filing the amendment necessary or helpful?
-Handwritten note on document from late December 2008 discussing why not to reveal more details of the “Shortfall Agreement” at AIG.
I want the truth!
You can’t handle the truth!