"Today's agreement settles the indisputable fact
that Mr. Greenberg has denied for 12 years: that Mr. Greenberg orchestrated two
transactions that fundamentally misrepresented AIG's finances." - New York
state Attorney General Eric Schneiderman, February 12, 2017
"AIG, in addition to being one of the largest
providers of traditional lines of insurance, was
a leading participant in the
market for credit default swaps, instruments that are linked to corporate
In the aftermath of the
bankruptcy and the Fannie
and Freddie takeover, AIG was exposed to significant
CDS losses . " - Mark
"Under the Paulson Plan,
the government would buy mortgages
and mortgage-backed securities for more than they are worth.
the companies that most vigorously pushed the idea were the American
International Group and Freddie
The Federal Reserve and the Treasury think that the prices
have fallen too far.
The goal is to recapitalize the banking system by
placing a floor under the prices of securities that never should have been
issued." - Floyd Norris
2005 Greenberg is ousted amid an accounting
$1.6 billion fine and criminal charges for multiple
Financial statements are restated from 2000 through
2008 "Moral hazard" is a term
commonly applied to financial contracts, under which
one party is obliged to pay
another money if a specified event occurs.
Moral hazard refers
to situations in which the very existence of the contract
alters the behavior of one
party increasing the
probability of the event's occurrence or
the size of the monetary
payoff based on that event, or both.
Joseph Cassano of American
International Group> is "highly confident they will realize no losses"
on the credit default swap portfolios less than three months before they post
more than $11 billion in losses.
September 16, 2008
"Between July and September of
2008, AIG spent more than $2 million to lobby Congress, the
the Federal Reserve and the White House." - Ben
American International Group, an insurance corporation, receives
an $85 billion infusion from the Federal Reserve for an 80% non-voting equity
AIG, the 18th-largest publically traded corporation on Earth, is
delisted from the Dow Jones
Industrial Average on September 22, 2008.
The AIG family of
corporations, the largest
underwriter of commercial and industrial insurance, held at this time a
$447 billion portfolio of
solvency and liquidity
is in our national interest.
It operates in 130 countries.
There's no entity like it in the world.
It serves many, many
purposes for the US.
So to have AIG go down would be very negative to
the US' interest, and business in those countries.
understand our government let this happen to it.
I think it would
undermine the credibility
of our own government.
When you're starting to unwind counterparty
transactions worldwide in a incorporation the size of AIG, it will take about
ten years to do.
What was happening was
../../economics.html#fungible">short sellers would short AIG stock, so that
would make the stock go down.
And because of the stock going
down they would have to put up more collateral on their credit default swap
The governor of New York has worked with the insurance
department to modify the regulations permitting AIG subsidiaries to move up
about $20 billion of excess assets as a means of helping.
regulatory front, other than a bridge loan, that's all they need." - Maurice R.
Greenberg, September 17, 2008, Council of Foreign
Raymond "Hank" Greenberg, previous chairman and controlling owner of AIG
insurance, manager of the third largest capital investment pool in the world,
was floated as a possible CIA Director in 1995.
Former A.I.G. Executives Reach Settlement in Accounting Fraud
January 2009 Three
trustees, Jill Considine (NY Fed, Depository Trust & Clearing Corp., Ambac
Financial Group Inc.), Chester Feldberg (NY Fed, Barclays Americas) and Douglas
Foshee (NY Fed, Halliburton & El Paso Corp.), are appointed to control AIG
by the Federal Reserve Bank of New
York to oversee
government 77.9% equity stake.
The New York Fed retains the right
to remove the trustee.
New York Fed President William Dudley worked
until 2007 as the chief economist for Goldman Sachs.
Friedman, who resigned as New York Fed chairman May 7, was once CEO of Goldman
Chase CEO Jamie
Dimon and Richard Carrion, chairman and CEO of Banco Popular de Puerto
Rico, are also on the New York Fed board, along with
General Electric CEO Jeffrey
May 2009 The US Treasury loans $182.5
billion to American International Group to pay off
credit default swap
The following banks received bailout funds through AIG on
Deutsche Bank AG ($5.4
billion), Société Générale ( $11 billion),
Goldman Sachs ($8.1
billion), Citadel Investment Group, Calyon, Barclays,
Bank of America, Merril
Lynch, Union Bank of
Switzerland, DZ Bank, Bank of Montreal, Rabobank, Royal Bank of Scotland,
observers outside Wall Street understand that the hundreds of billions of
dollars pumped into by the Federal Reserve of New York and Treasury, funds used
to keep the creditors from a default, has been used to fund the payout at face
value of credit default swap
contracts or "CDS," insurance written by AIG against senior traunches of
The Paulson/Geithner model for dealing with
institutions such as AIG with net
to pay CDS contracts seems to be to
simply provide the needed
liquidity and hope for the best.
Until we rid the markets of
CDS, there will be no
restoring investor confidence in
financial institutions." - Chris Whalen
American International Group had four public
relations firms on its payroll - Kekst & Company, Sard Verbinnen, Hill & Knowlton and Burson-Marsteller
- in addition to its own PR staff.
On a conference call, AIG chief
restructuring officer Paula Reynolds quipped that it might be 'better to go to
jail' than have to deal with the intricacies of securities laws.
Michael Weisskopf reports that Sard Verbinnen & Co.
"helps to structure statements on the bailout, Kekst & Co.
focuses on sales of assets
to pay back federal loans, Burson-Marsteller handles controversial
issues and Hill & Knowlton fields inquiries from Capitol Hill and
prepares congressional testimony for corporation officials."
$218 million in bonuses.
73 AIG employees are paid over $1 million
Defense contractors in Iraq were required to buy life and
casualty coverage for their workers.
AIG estimated the cost of
insurance would be $73.1 million from 2003 to 2006 but charged Kellogg, Brown &
Root nearly four times that amount $284.3 million.
Federal Reserve is buying
an insurance corporation?
Where exactly is that covered in the Federal Reserve Act?
banking industry just bought the world's largest insurance incorporation, and
they used taxpayer money to do it.
The Federal Reserve is a private
corporation owned by member banks.
The Federal Reserve returns the
interest on the bonds it "monetizes" to the government after deducting
operating costs and a 6% guaranteed return for bank shareholders.
upshot is the American
people will be paying
interest to the banks to bailout the banks from their own follies!" - Ellen
"We are mortgaging the future of our
children and grandchildren at
record rates, and that
is not only an issue of fiscal irresponsibility, it's an issue of
immorality." - David Walker,
former Comptroller General of the US
"Recovery will fail unless we break the
financial oligarchy that is blocking essential reform." - Simon Johnson,
former chief economist at the International Monetary Fund
This web site is not a commercial web site and
is presented for educational purposes only.
This website defines a new
philosophical ideology to which its author adheres. The author feels that the
falsification of reality outside personal experience has forged a populace
unable to discern propaganda from reality and that this has been done
purposefully by an international corporate cartel through their agents who wish
to foist a corrupt version of reality on the human race. Religious intolerance
occurs when any group refuses to tolerate religious practices, religious
beliefs or persons due to their religious ideology. This web site marks the
founding of a mystery school aptly named The Truth of the Way of the
Lumière Infinie - a rational gnostic mystery religion based on reason
which requires no leap of faith, accepts no tithes, has no supreme leader, no
church buildings and in which each and every individual is encouraged to
develop a personal relation with the Creator and Sustainer through the pursuit
of the knowledge of reality in the hope of curing the spiritual corruption that
has enveloped the human spirit. The tenets of The Truth of the Way of the
Lumière Infinie are spelled out in detail on this web site by the
author. Violent acts against individuals due to their religious beliefs in
America is considered a "hate crime."
This web site in no way condones
violence. To the contrary the intent here is to reduce the violence that is
already occurring due to the international corporate cartels desire to control
the human race. The international corporate cartel already controls the world
banking system, corporate media worldwide, the global industrial military
entertainment complex of America and is responsible for the collapse of morals,
the elevation of self-centered behavior and the destruction of global
ecosystems. Civilization is based on coöperation. Coöperation does
not occur at the point of a gun.
American social mores and values have
declined precipitously over the last century as the corrupt international
cartel has garnered more and more power. This power rests in the ability to
deceive the populace in general through corporate media by pressing emotional
buttons which have been preprogrammed into the population through prior
corporate media psychological operations. The results have been the destruction
of the family and the destruction of social structures that do not adhere to
the corrupt international elites vision of a perfect world. Through distraction
and coercion the direction of thought of the bulk of the population has been
directed toward solutions proposed by the corrupt international elite that
further consolidates their power and which further their purposes.
views and opinions presented on this web site are the views and opinions of
individual human men and women that, through their writings, showed the
capacity for intelligent, reasonable, rational, insightful and unpopular
thought. All factual information presented on this web site is believed to be
true and accurate and is presented as originally presented in print media which
may or may not have originally presented the facts truthfully.
Opinion and thoughts
have been adapted, edited, corrected, redacted, combined, added to, re-edited
and re-corrected as nearly all opinion and thought has been throughout time but
has been done so in the spirit of the original writer with the intent of making
his or her thoughts and opinions clearer and relevant to the reader in the
Fair Use Notice
This site may contain
copyrighted material the use of which has not always been specifically
authorized by the copyright owner. We are making such material available in our
efforts to advance understanding of criminal justice, human rights, political,
economic, democratic, scientific, and social justice issues, etc. We believe
this constitutes a 'fair use' of any such copyrighted material as provided for
in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C.
Section 107, the material on this site is distributed without profit to those
who have expressed a prior interest in receiving the included information for
research and educational purposes. For more information see:
www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted
material from this site for purposes of your own that go beyond 'fair use', you
must obtain permission from the copyright owner.
© Lawrence Turner
All Rights Reserved