Was AIG Bailout Legal – NO!!!!!

Buffet-AIG-Goldman

A trial in Washington may get to the truth for it is at least not New York City. There will be many star players taking the stand. No NY court would have ever allowed such a spectacle. There was a Buffet Goldman offer until they decided to let government funds be used.

The Fed and for Goldman CEO Hank Paulson let Goldman’s competitors fail Lehman and Bear Stearns under the claim there was not power. The very next day, suddenly there was power to bail out an insurance company.

AIG’s Greenberg’s lawyers have said in court papers the bailout “offer” from the New York Fed to provide AIG an $85 billion loan in exchange for high interest rates and a nearly 80 percent stake in the company amounted to unconstitutional theft from AIG shareholders, reported Reuters.

Pay attention to this one. We may get a glimpse behind the curtain. The government has already moved for protective order to prevent the public from learning the truth. In my own case, the court granted a lifetime protective order to HSBC that I could NEVER help the Japanese against NY Bankers. It would be nice just for once to get the truth out in the open.

See also Gretchen Morgenson NY Times