Secret AIG Document Shows Goldman Sachs Minted Most Toxic CDOs

Secret AIG Document Shows Goldman Sachs Minted Most Toxic CDOs

www.bloomberg.com

Feb. 23 (Bloomberg) -- When a congressional panel convened a hearing on the government rescue of American International Group Inc. in January, the public scolding of Treasury Secretary Timothy F. Geithner got the most attention.

Lawmakers said the former head of the New York Federal Reserve Bank had presided over a backdoor bailout of Wall Street firms and a coverup. Geithner countered that he had acted properly to avert the collapse of the financial system.

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The details are coming out finally on all the scams that went down. The interesting part is that Geithner still has his job. Are there any CDO's out there on whether he keeps it or not?

If The Chief does anything he really needs to unload that bad piece of baggage. As more and more of this story unfolds over time, his administration is going to be tied to Geithner as his pick for Secretary of the Treasury. With elections just around the corner I'm thinking G-man is going to find himself replaced sooner rather than later.

But then normal rules of hiring and firing don't seem to apply in DC or the Banking Industry.


PG

www.bloomberg.com
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