And do you think the superrich who lost all their money at LongTerm Capital Group had to fret over those losses. NOPE. We the taxpayers got to give them back all their money[.]
Completely untrue, and characteristically misrepresentative of the situation. Not a single cent of American taxpayers' dollars were used.
*****
GREENSPAN: Let me say first that the LTCM so-called bailout as you put it was not a bailout...
SANDERS: I understand that. But you were deeply concerned, were you not?
GREENSPAN: No. What I'm trying to communicate is the fact that what that was, was bringing together those who were the shareholders of that organisation to indicate to them that they ought to look at the issue of whether they wanted that institution to liquidate or not from their point of view and their interests. Taxpayer money...
SANDERS: Were you concerned about the overall impact on the national economy?
GREENSPAN: We were. That's the reason we suggested to them...
SANDERS: Sure.
GREENSPAN: ... that they look at it, but it was their choice, it was not taxpayer money.
house.gov
*****
They also point out that no taxpayer money was involved in the $3.6 billion attempt to shore-up LTCM. The pledged came from a consortium of banks and securities firms both here and abroad.
ncpa.org
*****
At this point, however, only one week after the private sector recapitalization of Long-Term Capital was announced, we have many more questions about the underlying facts concerning this matter than we have answers, and much of my testimony today will focus on the questions we need to answer in the weeks and months ahead.
First, I would stress that not a penny of FDIC deposit insurance funds or other government funds was used in the recapitalization. The use of FDIC funds was never considered, and we were not a party to the recapitalization talks.
fdic.gov
*****
I want to emphasize a few points. First, this was a private sector solution to a private-sector problem, involving an investment of new equity by Long-Term Capital's creditors and counterparties. Second, although some have characterized this as a "bailout", control of the Long-Term Portfolio passed over to this 14 firm creditor group and the original equity holders have taken a severe hit. Finally, no Federal Reserve official pressured anyone, and no promises were made. Not one penny of public money was spent or committed.
newyorkfed.org
*****
You are, of course, invited to respond by supporting your laughable assertion, if you feel you have an evidentiary leg to stand upon.
If not, a vituperative reaction will suffice.
:-)
LPS5 |
