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From: Scotty Starnes's Blog <[email protected]>
Date: Tue, Oct 26, 2010 at 4:33 PM
Subject: [New post] TARP Inspector General Claims Obama Hid $40 Billion in
AIG Losses
To: [email protected]
<http://scottystarnes.wordpress.com/author/scottystarnes/> TARP
Inspector General Claims Obama Hid $40 Billion in AIG
Losses<http://scottystarnes.wordpress.com/2010/10/26/tarp-inspector-general-claims-obama-hid-40-billion-in-aig-losses/>
*Scotty Starnes
<http://scottystarnes.wordpress.com/author/scottystarnes/>*| October
26, 2010 at 4:33 PM | Tags:
AIG <http://scottystarnes.wordpress.com/tag/aig/>, Federal
Reserve<http://scottystarnes.wordpress.com/tag/federal-reserve/>,
Neil Barofsky <http://scottystarnes.wordpress.com/tag/neil-barofsky/>, Obama
Administration<http://scottystarnes.wordpress.com/tag/obama-administration/>,
President Obama <http://scottystarnes.wordpress.com/tag/president-obama/>,
TARP <http://scottystarnes.wordpress.com/tag/tarp/>, TARP Inspector General
Neil
Barofsky<http://scottystarnes.wordpress.com/tag/tarp-inspector-general-neil-barofsky/>,
Timothy Geithner <http://scottystarnes.wordpress.com/tag/timothy-geithner/>,
Trouble Asset Relief
Program<http://scottystarnes.wordpress.com/tag/trouble-asset-relief-program/>,
U.S. Treasury <http://scottystarnes.wordpress.com/tag/u-s-treasury/> |
Categories:
Uncategorized<http://scottystarnes.wordpress.com/category/uncategorized/>|
URL:
http://wp.me/pvnFC-3eM
What else do you expect when you have a President who appoints a tax
cheat to run the U.S. Treasury Department? Neil Barofsky, Inspector General
over TARP, pointed out that the Obama administration changed its method for
counting loses.
Sorta like how they changed the method to claim they have 'saved or created'
jobs, in order to hide the true unemployment rate. This is just more fuel to
add to the "Obama lied" fire. It also includes the same list of crooks: AIG,
The Federal Reserve, the U.S. Treasury, Timothy Geithner and President
Obama.
>From the New York
Times<http://www.nytimes.com/2010/10/26/business/26tarp.html?_r=1&partner=rss&emc=rss>
(this
story was not on the front page):
*The United States Treasury concealed $40 billion in likely taxpayer losses
on the bailout of the American International Group earlier this month, when
it abandoned its usual method for valuing investments, according to a report
by the special inspector general <http://www.sigtarp.gov/reports.shtml> for
the Troubled Asset Relief Program.*
“In our view, this is a significant failure in their transparency,” said Neil
M.
Barofsky<http://www.nytimes.com/2010/01/26/business/26tarp.html?_r=1&scp=1&sq=%22where+the+billions+went%22+barofsky&st=nyt>,
the inspector general, in an interview on Monday.
*In early October, the Treasury issued a report predicting that the
taxpayers would ultimately lose just $5 billion on their investment in
A.I.G., a remarkable outcome, since the insurance company was extended $182
billion in taxpayer money in the early months of its rescue. The prediction
of a modest
loss<http://www.nytimes.com/2010/09/29/business/29aig.html?scp=5&sq=%22exit%20plan%22%20A.I.G.&st=Search>,
widely reported as A.I.G., the Federal Reserve and the Treasury rushed to
complete an exit
plan,<http://www.nytimes.com/2010/10/01/business/01aig.html?scp=1&sq=%22exit%20plan%22%20A.I.G.&st=Search>contrasted
with an earlier prediction by the Treasury that the taxpayers
would lose $45 billion.*
“The American people have a right for full and complete disclosure about
their investment in A.I.G.,” Mr. Barofsky said, “and the U.S. government has
an obligation, when they’re describing potential losses, to give complete
information.”
An official of the Treasury disputed Mr. Barofsky’s conclusions, saying the
department appropriately used different methods for different purposes. He
said the smaller loss was a projection of future events, and the larger one
was the result of an audit, which includes only realized gains and losses.
*The Treasury will include more information about A.I.G. when it issues its
own audited financial statement in November. Because those numbers must pass
an auditor’s scrutiny, the loss it reports is likely to grow once again, to
more than $5 billion.*
Members of Congress who have been critical of the federal bailouts jumped on
Monday to commend the special inspector general and challenge the varying
numbers.
*“If a private company filed information with the government that was just
as misleading and disingenuous as what Treasury has done here, you’d better
believe there would be calls for an investigation from the S.E.C. and
others,” *said Representative Darrell Issa, the senior Republican on the
House Committee on Oversight and Government Reform. He called the Treasury’s
October report on A.I.G. “blatant manipulation.”
Senator Charles E. Grassley of Iowa, the senior Republican on the Finance
Committee, said he thought *“administration officials are trying so hard to
put a positive spin on program losses that they played fast and loose with
the numbers.” He said it reminded him of “misleading” claims that General
Motors had paid back its rescue loans with interest ahead of schedule.*
Mr. Barofsky said he had written to the Treasury secretary, Timothy F.
Geithner, in mid-October, after widespread reports in the news media about
the possibility that the Treasury could wind down its position in A.I.G.
with just a $5 billion loss. He recommended that the Treasury correct the
October report, perhaps by *adding a footnote saying the methodology for
calculating its losses had changed*.
The Treasury declined. It sent back a letter saying its methodology for
calculating losses had not really changed, although its assumptions had. For
instance, it based the values of several future transactions on the current
price of A.I.G.’s common stock. The letter, signed by Timothy G. Massad, the
acting assistant secretary for financial stability, said this reflected the
fact that a crucial component of its exit strategy would be the exchange of
preferred for common stock.
Continue
reading>>><http://www.nytimes.com/2010/10/26/business/26tarp.html?_r=1&partner=rss&emc=rss>
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