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

[Pete2069]

This shows that they have no intentions of investigating Bush and his administration for their other criminal practices on torture , treason and other crimes..

[breakingnews]

It's chess. Watch and see....

[marinade]

It's football. There needs to be more action. The clock is running.

[essbird]

Maybe soccer. Two long periods of running around, culminating in a 1-1 tie and a free kick.

[probo]

I hope you are right, Break, cause I voted for President Obama and if he lets these crimes fall through the cracks, he will be an accomplist to them. I sure hope he is not just another politician who takes the safe way out for reelection, I think we , who worked hard to get him elected, would not so eaisily forgive him for not really fixing the root of so many of our problems, corruption, no matter which party is at fault. We need to keep the pressure on, that said, it is very early in his term, I can be patient for now.

[monicaangela]

First things first, let the guilty sweat a little. 0 ;-)

[destruct1]

ah....thos­e pesky facts....p­roof....ev­idence....­..so hard to overcome when your a lib.

[mccabe49]

proof ? facts what what you know about those rightwinger? try to tell mt that bush and his cronies ie ohil graham did not cause this mess through deregulation. We the american people are sick of the lies and the spins from republicans.

[scooperss]

Leahy Bails on 'Truth Commission' Plan
By Charlotte Dennett | Consortium News

So now, it seems, the wrecked economy – complements of the Bush administration -- is becoming the excuse for congressional inaction after eight years of unremitting malfeasance by the Bush administration.

http://www.afterdowningstreet.org/

[Steve Magruder]

Perhaps that why the Bush admin actively wrecked the economy.

[mach]

Grear MoveOn vid:

http://www.youtube.com/watch?v=DsrFa9jrpv8&feature=player_embedded

[ntmessage]

We also need to investigate Bush regarding the collapse of the auto industry at the profit of the oil industry. Now that the GM CEO is gone, for the auto industry to succeed we need to uproot all the failed elements and regrow a new business with new leadership everywhere. Next Ron Gettelfinger must go and all the bond holders need to get crammed down. Otherwise you are trying to save an inefficient cruise ship on top of a dingy.

[ssmack]

This is Banana Republic B. S. . Can we get over the obsession to prosecute the previous administration each and every time there is a change of political parties in the Presidency? This goes for both sides. I mean really! It's very third-world.

[AnnfromCA]

Amen....I frankly think it's nothing more than distracting revenge. Plus, people who love this stuff? They never are satisfied. They just find something else to rant about.

[mccabe49]

It's called justice smack! get over it

[jazabelz]

It is important to prosecute anyone who breaks the law -- no one is above it. I bet you didn't have any problem with the Republicans going after Clinton for a consensual sexual affair,yet you would let other leaders off for driving the economy in this country to collapse and torture?

[AnnfromCA]

*blink*

[gorideabike]

Sad to see Obama is going to 86 the union per GOP wetdreams. Just sayin'...

[scooperss]

It's bipartisanship ya know!

[OrbitOne]

We had eight years of blaming Karl R0ve. Now, we will have four to eight years of blaming Bush. Just what we need. The Dems have both House and The Executive Branch but they don't know how to lead or govern. They only know how to spend and bl@me. Wonderful.

[robodweeb]

How have you managed to miss all of the governing and leading in the last few months?

[TiffanyHusseinBanned]

Pronto loves American Idol, Biggest Loser, and The Bachelor.

[breakingnews]

Potato cannot get out of bed lately. Weeping into his pillow every morning is such a sad way to start the day. He barely has the energy to walk to his mailbox and collect his SSD check each month. Have pity....

[monicaangela]

Leadership, requires action by those that are being lead, if they don't know how to lead it's because they are not getting the correct feed back. Govern? Spend, is one of those things I see you are okay with as long as teh rethugs are making sure they shore themselves their friends and families up. You appear to be against it when it is for you, your family, and the rest of us. Could this be self h8tred on your part. Could you be so in love with wrong that you don't recognize right when you see it? Inquiring minds would like to know. 0 ;-)

[OrbitOne]

monica - I don't like profligate spending by ANY Party. Thus, I am an Independent Fiscal Conservative.

[IntelligentDesign]

Oh how utterly st.upid and de.base you are - boggles the mind, grieves the soul.

[OrbitOne]

Another empty post by the empty headed poster.

[ssmack]

OrbitOne is right on! We're behaving like a third world country. Would you prefer that we "tar and feather" in public each time there is a change of power?

[kdublya]

Aww, someone needs a hug. Come here big guy,

http://www.dailymotion.com/video/x3jw9f_war-why-cant-we-be-friends_news

[OrbitOne]

Ha! I was going to post that to VB a few months ago. Didn't think it would work.

[Rumplestiltskin]

Don't look a gift horse in the mouth. Every millisecond they are posturing in "investigative" hearings is a millisecond they aren't finding more things to waste money on.

[OrbitOne]

True. But, the "hearings" (dog & pony shows) do cost money and they make The voting Libs think that Congress is "doing something" thus, giving them a reason to re-elect.

[livelongandprosper]

Interesting article for a couple of reasons...

1. No by line. No one wants to take credit for this hatchet job.
2. No mention that some of the companies AIG helps cook the books were Freddie and Fannie
3. No mention of where the investigation into Freddie and Fannie is - they will end up costing the gov't far more than AIG in the long run and have Dem power brokers roaming their halls
4. It mentions 103 deferments for Bush's admin and just 11 for Clinton's. Maybe that is an indication that Bush's regulators where much more active, or maybe it is just slopy or lazy journalism.

[breakingnews]

Bush's regulators where much more active....­....

************

OMG!! That has to be the funniest thing I have read in quite a while!

[kdublya]

Yeah, actively turning a blind eye. The poor souls must have whiplash! :D

[livelongandprosper]

Yea, about as funny as O putting his speeches on the Queen's ipod. All I am looking at are the numbers, if they conflict with your prejudices, so be it. The reporter should have done more than read someone's fact sheet in writing the story.

[AnnfromCA]

I presume it won't result in much except some public relations for a few dead souls.

[jefflorida]

or maybe, just maybe, it's an example of the bush administration not prosecuting guilty but powerful, rich, republican violators of the law. just maybe.

[mccabe49]

Bush regulated? you have to be kidding when are you unthinking repubs going to get it through your thick heads this crisis was not caused by fannie and freddie this started with deregulation thanks to phil graham and other republicans.

[Caedwyn]

No by line?? Can't you READ??? The man's name is Ryan Grim.

& if you want to mention Fannie & Freddie, don't forget to mention that these institutions didn't MARKET OR SELL sub-prime mortgages - they bought (initially) a very SMALL percentage of them which had already been done & packaged up to look like roses from the likes of AIG- and only increased that number at the insistense of the BUSH administration!

As for Bush's regulators being much more active, I absolutely agree - they were definitely active in covering up, aiding & abetting criminal activity by not actively prosecuting it - which was supposed to be their job!

[CaptainObvious]

I have a question for my republican friends: I see a lot of finger-pointing going on in this thread regarding who is responsible for the Gramm-Leach-Bliley Act that overturned Glass-Steagall. It seems my republican friends want to point the finger at Clinton because he signed it into law.

My question to you is, "do you think overturning Glass-Steagall was the right thing to do?"

I we can all agree that was the wrong thing to do, then perhaps I'll join in the condemnation of Clinton for his role in signing Gramm-Leach-Bliley. I agree, Clinton and the democrats should have tried to do more to stop this bill.

[peacekitten]

not to mention the securities modernization act, which finished the hhhatchet job. and the same three cclowns helped author that one too.

[scooperss]

It was wrong of all of them but the repubs should not have written the repeal, should not have put it up for a vote, should not have voted for it, dems should not have voted for it and clinton should not have signed it.

And I'm not a republican.

[PocketWatch]

Not Republican in any way, but I wanted to respond. I really like Pres. Clinton. I think his faux impeachment was such BS. But that brings me to my point. There were a couple of things he did I really never liked. I think that NAFTA was a big mistake, and signing BLB was also. But remember the circumstances. He was under siege from all sides over the BS impeachment, a weakened President, and I think he felt he had to cave on some things to remain effective at all. Doesn't excuse, but may explain.

[breakingnews]

I kinda agree, but remember, Clinton signed it in Dec 1999. On his way out the door. AND I also remember him lobbying for it quite actively. I was screaming at the TV machine, so I remember that part REAL well....

[AnnfromCA]

NAFTA needs an agent. LOL* It gets blamed for all kinds of global woes. It never was about that....it was about strengthening our trading pacts. Had we not done something, the relationships with other countries would be much bigger of a problem than today. Moreover, lots of states have benefitted under new trade agreements, such as Texas and some states which deal heavily with Canada.

Don't you guys get tired of the same outdated criticisms?

[frixx]

Republicans controlled the Congress in 1998. Republicans repealed the act by a veto proof majority. Democrats had no power to stop it.

"The bills were introduced in the Senate by Phil Gramm (R-TX) and in the House of Representatives by James Leach (R-IA). The bills were passed by a 54-44 vote along party lines with Republican support in the Senate[1] and by a 343-86 vote in the House of Representatives[2]. Nov 4, 1999: After passing both the Senate and House the bill was moved to a conference committee to work out the differences between the Senate and House versions. The final bill resolving the differences was passed in the Senate 90-8-1 and in the House: 362-57-15. This veto proof legislation was signed into law by President Bill Clinton on November 12, 1999. "
Source(s):
http://en.wikipedia.org/wiki/Gramm-Leach
.

[monicaangela]

I absolutely agree, Clinton should be condemned for more than that, this isn't a my team right or wrong forum I hope. If the democrats are wrong about something, they will be called on the carpet just as fast or faster than the rethugs. This is about us, not about political parties. It is a proven fact that President Clinton was not perfect, and that he played the game more to the right than to the left of center. It is time to open our eyes, and see these leaders for what they are and not who they are. Reserve the right to disagree, otherwise, make life easy, get a recliner, and enjoy the kool aid, whichever flavor your team happens to be serving up. 0 ;-)

[scooperss]

Interesting. Did any republicans respond?

[Bpeirce]

Whenever the Republicans don't want a certain person to testify, all the more reason to have that person testify, because you know there is a trail of sh*t behind them.
Bush, Cheney and their henchman were rotten to the core and still are!

[robodweeb]

And whenever you hear "we don't need finger pointing" it's usually coming from those who the fingers are pointing at.

[JakeByrd]

Ellis Wyatt's Interests: Music Toby Keith, AC/DC, Rush, Triumph, old Stones (vintage, not the old guys), Marley, White Stripes, The Pet Shop Boys, Frankie Goes to Hollywood, The Bronski Beat Movies The Usual Suspects, Raising Arizona, Big, Patton, The Fountainhead Television wow, I miss George, Cramer, Elane, Jerry, and A*dolf, Q*ueer Eye for the Straight Guy. Books Atlas Shrugged -The Snows of Kilimanjaro -Anthem. Favorite short story is The Short Happy Life of Francis Macomber..­..and Mein Kaumpf My Grandfathers Son by Clarance Thomas (whom I'm secretly in love with) The Lion King Dislikes: Black people (except for Clarence Thomas), Hispanics, minorities, and anyone not like me Heroes My wife, for putting up with me. I am a royal pain in the a**. (that's for sure), H*itler, David D*uke Groups: Republicans For Integrity, Republicans Outside the Box, Fashion LOVERS, Ayn Rand Lovers, Who is John Galt?, Hawkish Republicans, Republican Storm , Sons of the Confederacy, The Thunder Bolt, Storm Front

[dentuso]

You left out trai lers, semi-automatics, confederate jammies and public restrooms.

[All in All]

And Mexicans, whom seem to get the guns that other people buy here in America from gun shows and then sell to the Mexicans..­... Whom I wonder what type of people would do such a thing.....

[LooktotheLeft]

Jeez, Ellis, how are you able to reconcile being a fan of Toby Keith and the Pet Shop Boys simultaneously

[LooktotheLeft]

Hmmmm

[toyboat]

I'm so tired of all the finger pointing, it's so counter productive. All thes a$$es need to take responsibility & then enact some sort of plan to fix what they have broken & we the people need to stand on top of each & every politicians head until they do what we need them to do in order to restore some dignity to this dumpy country

[All in All]

dgswilson:
""This is a great site to comment on. I wouldn't rely on it for the news or the facts about "anything"".
__________­__________­__________­__________­__________­__________­_

You know You're right, the (HP) is a great Website because people can share insights which sometimes makes other people rethink ones own views & conclusions, and furthermore the (HP) is just as good as any other News source, since with any News source "it all comes from outside perspective" (meaning not ones own perspective).

However like We've both stated; "un-like some other places to get News from, at the (HP) People can share their personal perspective with others, which means far more then just digesting what one person puts on the plate.

Have a good day, and hopefully continue to enjoy the (HP) and Your other News sources.. We're in this together!

[AnnfromCA]

Yes, the issue to me is to correct the laws that allowed the abuses to occur. Surely, that wouldn't be impossible to accomplish in this environment.

[marinade]

Still waiting for the Senate to show us that democracy is still alive.

Where's the comprehensive investigation?

The random firing and the little investigations here and there, aren't going to cut it.

[MsDoc]

A big hole starts with the first shovel-full.

I'm in my Pollyanna mode.

[LooktotheLeft]

don't feel sad...I live in a Pollyanna mode

[IntelligentDesign]

Finger pointing and hiding behind thin veils of secrecy went out with the Republican congress and the Bush administration; the people have soundly rejected such weak cowardly leadership - this president will not stand for wasteful childish rhetoric, he will insist on open and honest and constructive forward-looking dialog and swift action.

[scooperss]

Yes his whole point seems to be in looking forward and not backward. Unlike you, I take that to mean accountability is long gone.

[marinade]

It has only been two and a half months, and the President is restrained political practicalities (excuses that need to go away), but we're still waiting to see this.

So far, shoveling the money to the banking elite has far out-shadowed any semblance of oversight and investigation.

[chili111]

Maybe the federal attorneys that do the investigating will use the same techniques that were used in the Alaskan Senator's investigat­ion....and hide all evidence that could prove nothing unlawful went on, as they did in the Senator's case.

[robodweeb]

That was the Bush Justice Department.

They're under new management now.

[chili111]

And that NEW managment was the orchestrators of the Alaskan Senator's witch-hu nt, and YOU know it!

[breakingnews]

That was under the Bush Co. regime. Under Obama we will do things according to actual laws.

[chili111]

Sorry, buckwheat. The Alaskan Senator's "witch hunt" was a totally democratic party doing, and YOU know it.....

[destruct1]

Yeah....li­ke follow the tax laws and stuff like that.....y­our nonsense makes it too easy...kee­p it coming....­..hilariou­s.

[monicaangela]

These attorneys won't be under AG Gonzalez, or the Bush administration. That will make somewhat of a difference don't you think. 0 ;-)

[chili111]

Hello? Eric Holder? hahaha

[NWRICK]

Just because the Bush DOJ messed up so bad, does not make Stevens innocent.

[Pepper14]

Who is going investigate the house panel and all the dealing the dems have had in all this? They are just as much to blame for all this mess as anyone.

[MsDoc]

Sometimes I just want to throw the whole gang and start over...no elections, just pulling random names out of a hat.

[MsDoc]

Add the word "out"... anywhere you want.

[monicaangela]

The people are the investigative body when it comes to the House and Senate, we can very easliy remove them from office, if the electorate would begin to educated themselves, Bad Blue Dogs, or Bad Republicans alike. 0 ;-)

[ToL1]

Great news everyone, we are officially out of the recession. Unfortunately we have officially entered into what future historians will call "The Obama Depression­."

[dentuso]

If by "historians", you mean "delusional, disho nest @$$hats", I concur.

[breakingnews]

It's refering to Count Porkulous, however I am not sure how long of a "future" he has, considering his ill health....

[johnpherson]

They don't call it the Roosevelt depression. We have to fix it, the will of the people led Roosevelt to the New Deal not the other way around.

[monicaangela]

Your optimism overwhelms me, how intellectually astute you must be in your world. 0 ;-)

[ToL1]

Good morning, monica. How are you today?

[elbzee]

I think you have a misspellin­g... You left off an "R", and there are TWO "L's" ...

[Ohsherri]

If McCain would have won...do you think Repubs would be screaming to

overhaul the whole financial system?

Do you think there would be all these "sudden-ba­nk-manager­s" interested in money?

[scooperss]

If mccain had won there wouldn't be any need for sneaking a proposal to cut SS benefits into a bill, they would just do it and give us all a raspberry.