Michael Capuano: Why Are We Using the FDIC in the Bailout? And Why Do We Trust Ratings Agencies?
Michael Capuano (D-MA) did the best job grilling Geithner and Bernanke about Geithner's new bailout plan today. He challenged Geither's claim that this leverages private investment at a 6 to 1 ratio, arguing that with the FDIC funding, it's actually 13 to 1.
He then asks how much toxic assets are out there, noting that there are more than a trillion dollars of toxic assets out there.
Manzulllo: Why Do Americans Who Lost Their Retirement Have to Pay AIG?
Congressman Donald Manzullo (R-IL) read this line in Tim Geithner's opening statement to the House Financial Services Committee today.
AIG directly guarantees over $30 billion of 401(k) and pension plan investments and is a leading provider of retirement services for teachers and educational institutions.
And this line in Ben Bernanke's opening statement.
Workers whose 401(k) plans had purchased $40 billion of insurance from AIG against the risk that their stable value funds would
Geithner: There Is No Plan B
Gresham Barrett (R-SC) asked Tim Geithner "the $64 trillion question"--basically, what is Plan B.
Geithner's response? Don't worry. It'll work. That wasn't acceptable when President Bush had no Plan B in Iraq, and it's not acceptable here.
Maxine Waters: Is Goldman Sachs Going to Manage Our Toxic Waste?
Maxine Waters got into one key area of distrust on the bailouts: the ubiquity of Goldman Sachs in bailout plans.
Tim Geithner sure didn't seem all that interested in Waters' questions on the bailout.
Geithner and Bernanke Visit Financial Services Liveblog (Thread the Third)
Hearing is on CSPAN3 and the committee thread. In addition to Geithner and Bernanke, the head of the NY Fed, William Dudley, is also here.
For my liveblog on the statements, go here (it's mostly an excerpt of their statements).
For the first set of member questions, go here.
Geithner and Bernanke Visit Financial Services Liveblog (Member Questions)
Hearing is on CSPAN3 and the committee thread. In addition to Geithner and Bernanke, the head of the NY Fed, William Dudley, is also here.
For my liveblog on the statements, go here (it's mostly an excerpt of their statements).
Frank: Begin with Bernanke. First an announcement. We have a lot of members here, important hearing.
Geithner and Bernanke Visit Financial Services Liveblog
A few days ago, this hearing might have focused on why we need to bribe the banksters to clean up their mess. Now, it will undoubtedly focus on why we're socializing risk some more. We'll also have William Dudley, the new head of the NY Fed. The Honorable Timothy F. Geithner, Secretary, U.S.
Where's the Guy Who Doesn't Know $hit about Wall Street?
To manage the auto bailout, Obama picked someone who doesn't know shit about the industry. To manage the Wall Street bailout, Obama picked a crowd that was deeply involved in all the crappy decisions that got us into this mess. I may not love the choice of Rattner to lead the auto task force. But he may help us to avoid the rigid ideology of the Wall Street bailout team.
Cheney's Assassination Squads and Iran-Contra and Findings
Sy Hersh's recent discussion at University of Minnesota revealed the edges of the way Dick Cheney worked. By reading Hersh's work in conjunction with a recent CRS report, it suggests more about how and why Cheney did what he did.
The Fed and Bonuses
The WSJ makes clear that Treasury specifically avoided discussing bonuses when negotiating new aid for AIG, at a time when they were forcing the UAW to renegotiate compensation.
The Clarion Call Of Gideon's Trumpet
In eight days, on March 18, will fall the 46th anniversary of momentous day in American jurisprudence, the day the decision in Gideon v. Wainright was rendered. Prior to Gideon, criminal defendants in the United States had a right to be represented by counsel, but not the right to have counsel appointed if they could not afford their own attorney. But what the Supreme Court gave in Gideon is under attack, and it destroying the due process guarantee in the American criminal system.
Bad Brackets - Hoops Trash Talk Part Deaux
Sorry about the sparse posting but your happy hosts here are, you know, off being happy this weekend. Marcy has pounded her poor fingers into a pulp and me, well I am tired just from watching her. So here is a copy of my brackets for the NCAAs. I was 15-1 at the end of the first day Thursday.
CIA Refuses to Turn Over Torture Tape Library
The CIA put together an inventory of their torture tape library. But they are not going to hand it over.
Liddy's Lies to Congress: Meet AIG's $6.4 Million Man
Edward Liddy said that all the CDS traders were gone. But apparently, we just paid $6.4 million to one of them (though he did give the bonus back).
Obama Creates Delicious Hell for Stimulus Lobbyists
Obama just issued a memo requiring all communications with lobbyists about the stimulus bill to be posted online.
President Obama Warns Americans about Threat from Financial Terrorists
Just days after I accused AIG's traders of threatening a terrorist attack, Obama's making the same analogy.
The Fear-Mongering to Silence the AIG Employees
Yes, AIG has given employees a memo warning them to watch for their own safety. But the apparent purpose of that memo is to make sure they don't talk to the press.
Is AIG's Reinsurance Side a House of Cards, Too?
Here are a few more details why we're right to be panicked about stories that AIG's reinsurance side is a house of cards, too.
More Whines from AIG
Funny. I never heard any UAW employees whine like this when they were falsely accused of ruining the domestic manufacturing industry because they demanded a completely fictional $75/hour.
One A.I.G. executive, who spoke on the condition of anonymity because he feared the consequences of identifying himself, said many workers felt demonized and betrayed.
