Welcome login | signup
Language en es fr
OccupyForum

Forum Post: AIG got LIBOR-rigging to help pay back U.S. Taxpayers

Posted 2 years ago on July 25, 2012, 12:01 a.m. EST by grapes (3444)
This content is user submitted and not an official statement

Quoting from http://www.washingtonpost.com/business/economy/ny-fed-silent-on-barclays-admission-of-rigging-libor/2012/07/24/gJQA2eWg7W_story_1.html :


The Fed seemed unsure in the summer of 2008 whether it could prove that Libor was rigged. In a presentation June 5 given to staff members to other regulatory agencies, New York Fed employees said: “These claims are difficult to evaluate.” The Fed seemed unsure in the summer of 2008 whether it could prove that Libor was rigged. In a presentation June 5 given to staff members to other regulatory agencies, New York Fed employees said: “These claims are difficult to evaluate.”

Bailout paybacks

Still, the Fed proceeded to use Libor as a benchmark to determine how much insurance giant American International Group would pay back the government during its bailout. The measure also was used in the fall of 2008 to set the interest rate for the emergency lending program called the Term Asset-Backed Securities Loan Facility, or TALF.

Warren Buffet got high interest rate and preferred stock for capital infusion into Goldman Sachs during financial crisis after Lehman Brothers had gone into bankruptcy. Tim Geithner, purportedly at the time got a similar high rate (10%) imposed on the bailout money given to AIG. However, this rate was apparently totally forgotten by the Obama Administration. By using rigged Libor, the U.S. Taxpayers were probably cheated out of huge amount of interest. Many people were saying that the banks and AIG had paid back most of what they owed to the U.S. government so IS THAT how they ended paying less to the U.S. Taxpayers, through a rigged Libor and having shills in the U.S. government and overseas?

0 Comments

0 Comments


Read the Rules