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Henry Paulson Gives Our $ To Maurice Greenberg's AIG and Gets Some Back For Goldman SachsA
by Reuters and others Sunday, Mar. 08, 2009 at 11:37 AM

Henry Paulson, head of Goldman Sachs and also president of the coopted Nature Conservancy, along with other neocons gave 173 billion when Secretary of the Treasury to Maurice Greenberg's AIG, an insurance scam cartel with over 17 million accounts in over 100 countries. AIG in return has given some back to Paulson's Goldman Sachs. As head of the US Treasury, Paulson used the IRS as snoops on call girls to frame Gov Eliot Spitzer as revenge for Spitzer's having indicted him and Greenberg. Rupert Murdoch helped in the frame. Paulson as president of Nature Conservancy turned the wilderness shrines into cattle ranches, presumably to supply Goldman Sachs' fast food investments with the flesh of animals. Henry Paulson etc have given 173 billion to AIG which in return gave $ to Henry Paulson's group: Goldman Sachs


reuters.com
Who got AIG's bailout billions?
Sun Mar 8, 2009 8:30am EDT
By Toni Reinhold

NEW YORK (Reuters) - Where, oh where, did AIG's bailout billions go? That
question may reverberate even louder through the halls of government in the week
ahead now that a partial list of beneficiaries has been published.

The Wall Street Journal reported on Friday that about $50 billion of more than
$173 billion that the U.S. government has poured into American International
Group Inc since last fall has been paid to at least two dozen U.S. and foreign
financial institutions.

The newspaper reported that some of the banks paid by AIG since the insurer
started getting taxpayer funds were: Goldman Sachs Group Inc, Deutsche Bank AG,
Merrill Lynch, Societe Generale, Calyon, Barclays Plc, Rabobank, Danske, HSBC,
Royal Bank of Scotland, Banco Santander, Morgan Stanley, Wachovia, Bank of
America, and Lloyds Banking Group.

Morgan Stanley and Goldman Sachs declined to comment when contacted by Reuters.
Bank of America, Calyon, and Wells Fargo, which has absorbed Wachovia, could not
be reached for comment.

The U.S. Federal Reserve has refused to publicize a list of AIG's derivative
counterparties and what they have been paid since the bailout, riling the U.S.
Senate Banking Committee.

Federal Reserve Vice Chairman Donald Kohn testified before that committee on
Thursday that revealing names risked jeopardizing AIG's continuing business.
Kohn said there were millions of counterparties around the globe, including
pension funds and U.S. households.

He said the intention was not to protect AIG or its counterparties, but to
prevent the spread of AIG's infection.

The Wall Street Journal, citing a confidential document and people familiar with
the matter, reported that Goldman Sachs and Deutsche Bank each got about $6
billion in payments between the middle of September and December last year.

Once the world's largest insurer, AIG has been described by the United States as
being too extensively intertwined with the global financial system to be allowed
to fail.

The Federal Reserve first rode to AIG's rescue in September with an $85 billion
credit line after losses from toxic investments, many of which were mortgage
related, and collateral demands from banks, left AIG staring down bankruptcy.

Late last year, the rescue packaged was increased to $150 billion. The bailout
was overhauled again a week ago to offer the insurer an additional $30 billion
in equity.

AIG was first bailed out shortly after investment bank Lehman Brothers was
allowed to fail and brokerage Merrill Lynch sold itself to Bank of America Corp.

Bankruptcy for AIG would have led to complications and losses for financial
institutions around the world doing business with the company and policy holders
that AIG insured against losses.

Representative Paul Kanjorski told Reuters on Thursday that he had been informed
that a large number of AIG's counterparties were European.

"That's why we could not allow AIG to fail as we allowed Lehman to fail, because
that would have precipitated the failure of the European banking system," said
Kanjorski, a Democrat from Pennsylvania who chairs the House Insurance
Subcommittee.

TOXIC ASSETS/TOXIC WASTE

As part of its business, AIG insured counterparties on mortgage-backed
securities and other assets. The collapse of the U.S. subprime mortgage market,
which triggered a global financial crisis, left the insurer and some of its
policy holders facing possible ruin as the value of assets declined.

U.S. regulators failed to recognize how much risk AIG was piling on in
credit-default swaps, and by the time they understood, they had no choice but to
pour in billions of public dollars, Kohn and other officials told the Senate
panel.

Senators were outraged by the lack of details about where the bailout money has
gone.

"That we find ourselves in this situation at all is ... quite frankly,
sickening," said Senator Christopher Dodd, the Democrat who chairs the
committee. "The lack of transparency and accountability in this process has been
rather stunning."

Eric Dinallo, superintendent of New York State's Insurance Department, railed on
Friday against AIG's failed business model, likening its insuring credit-default
swaps as gambling with somebody else's money.

"It's like taking insurance on your neighbor's house and even maybe contributing
to blowing it up," he said at a panel sponsored by New York University's Stern
School of Business.

U.S. lawmakers have said they are running out of patience with regulators'
refusal to identify AIG's counterparties.

On Thursday, Richard Shelby, the top Republican on the banking committee, said:
"The Fed and Treasury can be secretive for a while but not forever."

(Writing Toni Reinhold; Additional reporting by Juan Lagorio in New York;
Editing by Clive McKeef)

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