Dear Gretchen:
The double speak coming from the Whitehouse spokesmen and Obama himself is deafening. AIG is a disgrace. There is a remedy, not only to recover the bonuses, but to recover the $180 billion in payouts on these "gambling contracts" that were legalized by legislation a few years ago.
I am a bankruptcy lawyer. The US owns 80% of AIG. They are the controlling stockholder. The US can unilaterally put the London subsidiary into chapter 11. All contracts can be "broken" (rejected) in chapter 11. If the bonuses were paid, all preferential payments within the past 90 days can be recovered. All fraudulent transfers within 4 years can be set aside.
Frankly, I believe that all "naked" Credit Default Swaps should be rejected. This was a roll of the dice. By setting aside all of the "naked" swaps trillions of dollars will be saved.
There is a deep dark secret as to why the beneficiaries of the bailout to AIG have not been disclosed. The disclosure of these names will cause riots in the streets against Wall St as the broken Americans who have lost their jobs and house are subordinated to foreign sovereign wealth funds and the "friends" of Rubin, Sommers, Geitner are rewarded. How much is Obama inebted to these "fat cats"?
Gretchen, you have been very vocal in your comments and articles on CDOs for the past 2 years with righteous indignation. Lets take on Wall Street.
Martin S. Friedlander, Esq.
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