Posted by Karl Denninger
In a letter to Darrell Issa and Edolphus Towns the NY Fed’s General Counsel asserted:
“Matters relating to AIG securities law disclosures were not brought to the attention of Mr. Geithner,” Thomas Baxter, general counsel of the New York Fed, said yesterday in a letter to Representative Darrell Issa, a California Republican, and Edolphus Towns, Democrat of New York. “In my judgment as the New York Fed’s chief legal officer, disclosure matters of this nature did not warrant the attention of the president.” Geithner, who helped orchestrate the bailout of AIG when he led the New York Fed, is now Treasury Department secretary.
Financial statements and exhibits – “disclosure matters of this nature” I’d think – don’t merit Geithner’s attention?
An article over on Seeking Alpha makes the following assertion via documentary evidence:
“Note that there should be no discussion or suggestion that AIG and the NY Fed are asking to structure anything else at this point.”
The assertion is made that this is Geithner’s own handwriting. NY Fed Officials say he was not involved.
Well, that deserves investigation.
Who’s handwriting is on this page?
If it’s Geithner’s, he’s cooked.
But even if it’s not Geithner’s handwriting the fact remains that as President of the NY Fed at the time he is directly and personally responsible for the actions of the firm.
In addition, however, if it is developed that the NY Fed solicited and participated in a willful and intentional violation of US Securities Laws then someone has a potential 20 year stay with Bubba on their agenda. Specifically, Sarbanes-Oxley added the following to US Code Title 18, Part 1, Chapter 73, S.1519
Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States or any case filed under title 11, or in relation to or contemplation of any such matter or case, shall be fined under this title, imprisoned not more than 20 years, or both.