On May 20th, U.S. Treasury Secretary Geithner testified before the Senate Banking Committee on TARP Oversight.
Our Senators, bi-partisan, asked some very good common sense questions.
This hearing was right before Geithner announced they will be using the
Wall Street Plan (read Goldman Sachs, JP Morgan Chase) for OTC derivatives trading, a seemingly contradiction of his earlier May 13th proposal.
Below are excerpts from the committee questioning.
Senator Mark Warner asks why AIG paid out on credit default swaps at 100%, in particular to Goldman Sachs:
Senator Bob Corker asks why AIG is not being wound down:
Geithner admits the U.S. Treasury has no TARP exit strategy:
So, we have a never ending U.S. taxpayer recycling bail out system, continued funneling of U.S. taxpayer funds through AIG, refusal to request authority to shut any of this glorified debt treadmill down and after much fanfare on OTC derivatives oversight and regulation, the same rats who have a massive financial interest will also design the OTC derivatives regulatory system?
Isn't this along the lines of health insurance companies, the ones who brought America to it's knees by looking at sick people as consumers from which to extract profits, designing health care reform?