To the best of Geithner’s and Paulson’s recollection

Treasury Secretary Geithner and former Secretary Paulson’s testimony today at the AIG House oversight committee hearing has disclosed nothing new. Geithner continues to dodge questions related to his knowledge and his assistants’ knowledge related to AIG counterparty relationships and their associations with Government Officials such as Henry Paulson and his assistants who previously worked for Goldman Sachs. Specific questions related to counterparty settlements of 2.5 billion of U.S. Taxpayer Dollars to Goldman Sachs, and 16.5 Billion Taxpayer Dollars to a Foreign National Bank the top two recipients. The web of financial transaction connected many of the financial institution who received billion of T.A.R.P. tax dollars was the reason for rescuing AIG. Geithner’s rationale behind their decision was to prevent a financial catastrophe or meltdown of the US financial systems. Paulson’s rationale similar to Geithner’s was First AIG was too big to fail. That’s sounds familiar. Second, AIG was seriously unregulated. The wolves were guarding the Hen House. Third, AIG could not go into bankruptcy successfully. This was because its failure would affect other financial institutions. The bottom line was the U.S. Taxpayer had to make Goldman and other institutions both domestic and international whole by paying off AIG liabilities to those institutions that had political leverage through our government officials. Of course Paulson denies any role in the decisions being made to help make Goldman whole. The continued excuse is that the future of our economy was at risk. Not really knowing what the results would have been if AIG failed. The scare tactics used over and over again during the Bush/Chaney years to justify two wars carried over into this debacle used by Paulson, Geithner and Bernake. We wonder why the public doesn’t trust Government.

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