Saturday, March 28, 2009
O what a friend we have in Andrew Cuomo
Regardless of whatever level of ambition you may impute to him, he is doing the investigating that needs to be done. He is starting with AIG, but with all the incestuous financial relationships on Wall St., you just know it will lead much deeper.
Attorney General Andrew M. Cuomo of New York said Thursday afternoon that he was widening his investigation of the American International Group to examine whether its trading counterparties improperly received billions of dollars in government money from the troubled insurer.Will the feds join in or try to stop him? The $164 Trillion question.
Those counterparties include Goldman Sachs, which received $12.9 billion, as well as Société Générale of France and Deutsche Bank of Germany, which each received nearly $12 billion.
“Our investigation into corporate bonuses has led us to an investigation of the credit default swap contracts at A.I.G.,” Mr. Cuomo said in a statement. “CDS contracts were at the heart of A.I.G.’s meltdown. The question is whether the contracts are being wound down properly and efficiently or whether they have become a vehicle for funneling billions in taxpayers dollars to capitalize banks all over the world.”
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