While a posse rides hard in pursuit of Treasury Chief Tim Geithner, alias "Banksters' Delight," the White House rushed to his defense. CNNMoney stated:
"Secretary Geithner was not involved in any of these emails," Gibbs (White House Press Secretary) said. " These decisions did not raise to his level at the Fed."The buck stops at the top for the Nigerian underwear bomber, but not at the NY Fed in managing the AIG corpse revival?
Gibbs said the emails in question involved decisions made by two people, but not Geithner.
As for the veracity of Gibbs statement, the public would need to hear from the e-mailing NY Fed staffer. The attorney's e-mail clearly refers to the Fed's desire to keep the information secret. Bloomberg reported:
The filing “reflects your client’s desire that there be no mention of the synthetics in connection with this transaction,” Shannon wrote to Davis Polk on Dec. 2, 2008. “They will not be mentioned at all.”
While Tim formally withdrew from matters associated with AIG and bank bailouts upon his nomination (November 24), he remained President of the New York Fed. Informal direction could easily and likely came from above.
As the posse rides closer, wagons circle at the NY Fed and White House. Can Tim survive the onslaught? Will anyone with insider knowledge be intimidated, threatened with banishment to unguarded territory? The SEC has AIG's back:
It could take until November 2018 to get the full story behind the U.S. bailout of insurance giant American International Group because of an action taken last year by the Securities and Exchange Commission.
Stay tuned, for eight long years? So much for America's open & transparent government.