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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: average joe who wrote (50579)	5/28/2009 7:11:17 PM
From: TobagoJack	2 Recommendations Respond to of 218931

enron skilling was just everyday corruption. aig everything is serious corruption, per just in in-tray view, there is a chance- remote as it may seem, since all the documents proving the fraud have probably been shredded long ago - that the public may learn a little more about the fraudulent scheme AIG and the banks were possibly (probably?) engaged in. (a short description of the alleged fraud/Ponzi scheme: AIG wrote CDS for amounts that it could never ever pay out in case of a financial accident. all parties to these transactions knew that - there was no 'good faith' involved. it was a variation of the 'side letter' fraud, with the only aim to enable the banks to let assets masquerade as 'insured' and thus requiring less capital to back them; in essence, AIG helped them to falsify their balance sheets. now, nota bene, there exists no proof backing this suspicion/allegation. it is merely a logical deduction, since the side letter fraud was once widespread, and the authorities had begun to clamp down on it, so the CDS market may have looked like a viable replacement. the fact that AIG would be bankrupted if it had to pay out on its CDS should have been obvious to the big players - presumably they do at least SOME due diligence before signing off on contracts worth tens of billions? from this follows another allegation - namely, that the fraud was then extended by the very regulators who in theory should have averted it in the first place - by actually paying out on the fraudulent contracts with tax cow money. if so, then this is the biggest financial scandal in history). why may more come to light? the courts now allow a challenge to the bail-out to proceed: thomasmore.org Proclaiming that times of crisis do not justify departure from the Constitution, Federal District Court Judge Lawrence P. Zatkoff allowed the lawsuit against Treasury Secretary Timothy Geithner and the Federal Reserve Board challenging the AIG bailout to proceed. The lawsuit has an unique angle :0), i quote thomasmore.org "Richard Thompson, President and Chief Counsel of the Thomas More Law Center, commented, “It is outrageous that AIG has been using taxpayer money to promote Islam and Shariah law, which potentially provides support for terrorist activities aimed at killing Americans. Shariah law is the same law championed by Osama Bin Laden and the Taliban. It is the same law that prompted the 9/11 terrorist attacks on our soil that killed thousands of innocent Americans. We won this skirmish. But the war to stop the federal government from funding Islam and Shariah-compliant financing is far from over.”"