Dems Investigating Bush Administration Role In AIG Collapse

A House oversight panel is investigating the role Bush administration officials and regulators played in the collapse of American International Group. The first step of the investigation begins Thursday, House Oversight and Government Affairs Committee Chairman Ed Towns (D-N.Y.) tells the Huffington Post, when the committee hears testimony from former AIG CEO Hank Greenberg.

In November 2004, the Bush Justice Department and the Securities and Exchange Commission agreed not to prosecute AIG for allegedly helping companies fudge their books. In exchange, AIG agreed to host a government-appointed auditor in company meetings. At the time, Greenberg said it brought "finality to the claims raised by the SEC and the Department of Justice."

Towns said that Greenberg should be able to identify Bush administration officials involved in the decision-making around the settlement. Towns added the committee wants to know what Bush administration regulators knew about AIG's credit default swaps and other highly risky positions that brought the company down.

Asked if he would be directly pursuing Bush administration officials, Towns said: "No doubt about it. That's the reason I want to talk to Greenberg first. He might even point some folks out. That's of great interest to us."

Towns said the committee will also examine the AIG collapse to determine what legislation might be needed to make another occurrence less likely. Greenberg stepped down in 2005.

"The committees have not talked to Mr. Greenberg. They've only talked to Liddy" -- AIG's current head Edward Liddy -- "and Liddy has basically said, 'It was Greenberg's problem,'" Towns said.

"You can't have an investigation just moving forward. You have to look back as well. And that's what we're doing," said Towns.

The Bush administration's preferred way of dealing with corporate scandal was to defer prosecution. The Wall Street Journal reported last week that Bush prosecutors made 103 deferred and nonprosecution agreements with U.S. companies between 2002 and 2009. While Clinton was president, meanwhile, only 11 such pacts were entered into.

Criminal charges could result from the investigation, Towns said.

"All kinds of things could happen depending on what we find. And we're looking," he said. "Our eyes are wide open. Wherever the road leads us, that's where we plan to go."

Comments

[bayside]

Not to worry republicans ,if dems are investigating..They have done so well in that area..

[RTIII]

If only they would change the subject of their investigations, yet keep the same zeal and focus; there are 34 impeachable offenses - crimes against the citizens and the very nation itself - that are begging investigation and criminal prosecutions.
.

[peeweeH]

The road will take you right up your own @ss.

[RedEric]

Yeah man! Scapegoat Bush. Ignore Barney Frank and the rest of the gang of thieves.
http://allanerickson.wordpress.com/2009/03/25/politicians-claim-to-fix-the-crisis-they-caused/

[katekid]

Dear PinkEric,
Don't get your panties in a knot.
You'll be able to write Bush and Cheney when they're in the can.

[dashboard]

Two words, get Cassano.

[Dunderslapoldmen]

Lawmakers Have Long Rewarded Their Aides With Bonuses Article
Comments (33)
more in Politics »By BRODY MULLINS and LOUISE RADNOFSKY
WASHINGTON -- While Congress has been flaying companies for giving out bonuses while on the government dole, lawmakers have a longstanding tradition of rewarding their own employees with extra cash -- also courtesy of taxpayers.

Capitol Hill bonuses in 2008 were among the highest in years, according to LegiStorm, an organization that tracks payroll data. The average House aide earned 17% more in the fourth quarter of the year, when the bonuses were paid, than in previous quarters, according to the data. That was the highest jump in the eight years LegiStorm has compiled payroll information

[lena22]

I wonder do people still believe de-regulation is good. I support the French and Germans thier should be a world panel of regulators, we live in a global economy.

[taricaziz]

There was reason for regs. in the first place. These were instituted by folks who had a moral compass and cared about society as a whole. Most regulations corrected a wrong or injustice, or imbalance. Why get rid of them when it probably took years to get them, and most were grounded in common sense after sensible debate. One of the reasons for the repeal of glass/steagal was so the crooks could loot and plunder at will, there was no one in congress to provide checks and balance to operations because they were all complicit and stood to benefit from the repeal and decreased oversight,

[truthynesslover]

The BIG PICTURE;

The key point is that neither the public, the Fed nor the Treasury seem to understand is that the CDS contracts written by AIG with these various non-insurers around the world were shams - with no correlation between "fees" paid and the risk assumed. These were not valid contracts as Fed Chairman Ben Bernanke, Treasury Secretary Geithner and Economic policy guru Larry Summers claim, but rather acts of criminal fraud meant to manipulate the capital positions and earnings of financial companies around the world.

Indeed, our sources as well as press reports suggest that the CDS contracts written by AIG may have included side letters, often in the form of emails rather than formal letters, that essentially violated the ISDA agreements and show that the true, economic reality of these contracts was fraud plain and simple. Unfortunately, by not moving to seize AIG immediately last year when the scandal broke, the Fed and Treasury may have given the AIG managers time to destroy much of the evidence of criminal wrongdoing.

Arent we glad were shoveling money into that hole?
Nope nuthin to see here.

[taricaziz]

criminal fraud is right on. CDS complete fake stuff

[cigi]

I believe Bush/Chene­y/Rumsfeld will be indicted for war crimes by a world body before we make them pay a day for all their activities in aiding and abetting the near collapse of our financial system in this country and around the world. Bush had better not plan any world tours, a lot of countries might just scoop him up and put his butt on trial. The American people are so stupid and just plain ignorant of all the attrocities committed by the Bush Administration and then the Pubies yell we are becoming Marxists, Socialists....the least of our worries...our Constitution trampled by these jack-booted thugs!

[rainboskies]

You mean the Bush Administration with a Democratic majority in Congress since 2006? The war that the majority of Congress approved with their Yes votes after NY was attacked? I only "hope" that Obama can keep this country safe for the next four years...Bush did it for seven.

[taricaziz]

Your wrong.....­rainboskie­s.

[dashboard]

He kept us safe from enemies, but not from economic ruin, our reputation in ruin, but he sure cleared a lot of brush.

[catrancher]

Bush spent his first 6 months on vacation..­....google it.

We were attacked on Bush's watch, even though he was warned. This is fact.

Rethuglicans don't understand the meaning of the word 'fact'.

President Obama has accomplished more since 1/20 for our safety than Bush did in 7 years. Now the rest of the world knows they can speak with us, and we might not blow them up for trying.

[PuffDragon]

Patrick Fitzgerald's "investigation" into the outing of CIA agent Valerie Plame ultimately lead to nothing.
I don't see anyone outing CIA agents who tortured prisoners in the name of democracy and freedom.

The 9/11 Commission omitted glaring contradictions between testimony and established facts.

The US government has become expert at appearing to do a job, while actually accomplishing nothing, and they are well-served by mainstream media.

It's great that Huffington has launched an investigative team - I hope they uncover some real gems.

[IntellectuallyHonest]

Let's add corruption to the greed and recklessness that has brought us down.

[arkadie7]

Bush can serve time for this after he finishes his life sentence for treason.

[truthynesslover]

Im sure theyll do a bang up job like they will on the truth commission­.........o­h wait.....

We had asked for the meeting to learn why [Patrick Leahy] supported a truth commission over the appointment of a special prosecutor.


Halfway through the allotted 30 minute meeting (with him taking up much of the time explaining why he was not generally opposed to prosecution, since he had been a DA for eight years and had the highest conviction rate in Vermont), he told us that his truth commission had failed to get the broad support it needed in Congress, and since he couldn’t get one Republican to come behind the plan, “it’s not going to happen.”

uneffen believable

[clamperken]

ToL1, why have you not responded to my earlier post? I'll say it again so you can understand it. I see our First Lady and our President as just as important as any "born into it" royalty, if not more so. There is no reason in the world that they should bow down to any king or queen. Do you automatically respect rich people who simply inherited thier money just because they are weathier then yourself? I would think you do not. Respect is earned not demanded or a given. Our First Lady did nothing that could be seen as disrespectful except to people such as yourself who see "Royalty" as something above you. This is the 21st century not the dark ages. Get over it or move to England where you can bow down to "Your" betters.

[rainboskies]

Did you miss the picture of Obama bowing down to the Price of Saudia Arabia today? Priceless!

[rainboskies]

Oh yeah? You missed the picture of Obama bowing down to the Prince of Saudia Arabia today at the G20 summit. Priceless!

[babyboomerorig]

Maybe, just maybe, this is something that could evolve into other areas of what the previous administration did to this country.

[lentinelia]

Let's hope.

Actually - let's demand it from our representatives in the congress.