They are bringing out the big guns this morning.
Isn't that ironic? We have Treasury and Bernanke, providing us everything but the truth, but the two folks that the public listens to, tell it to the public straight.
When Bernanke is asked for the names of AIG's counterparties, he just says "no."
Now we have those names.
Today, we see that AIG put out a 21 page presentation to Treasury saying that they needed more money, or Treasury was going to lose their investment in AIG, and we would have giant repercussions.
American International Group Inc. appealed for its fourth U.S. rescue by telling regulators the company’s collapse could cripple money-market funds, force European banks to raise capital, cause competing life insurers to fail and wipe out the taxpayers’ stake in the firm.
AIG needed immediate help from the Federal Reserve and Treasury to prevent a “catastrophic” collapse that would be worse for markets than the demise last year of Lehman Brothers Holdings Inc., according to a 21-page draft AIG presentation dated Feb. 26, labeled as “strictly confidential” and circulated among federal and state regulators.
“What happens to AIG has the potential to trigger a cascading set of further failures which cannot be stopped except by extraordinary means,’’ said the presentation by New York- based AIG. “Insurance is the oxygen of the free enterprise system. Without the promise of protection against life’s adversities, the fundamentals of capitalism are undermined.’’
http://www.bloomberg.com/apps/news?pid=20601087&sid=a72q7hFPu5Cs&refer=home
We have teleprompter talk from Obama, and news leaks for Geithner, when we need somneone to land the plane!
Maybe they should just call Sully!
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