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Rolling Stone: “The Big Takeover” — AIG Bailout as Political Revolution by Wall Street

Posted By Chris Whalen On March 26, 2009 @ 6:32 am In BP Cafe,Credit,Investing,Markets | Comments Disabled

If you have not done so, read MATT TAIBBI’S excellent piece in Rolling Stone on the political implications of the bailout:

The Big Takeover [1]

Taibbi has done a very thorough job of research on this piece.  For example, he illustrates some of the bizzare legal protections given the Fed over the years, protections that make the central bank immune from congressional oversight:

“None other than disgraced senator Ted Stevens was the poor sap who made the unpleasant discovery that if Congress didn’t like the Fed handing trillions of dollars to banks without any oversight, Congress could apparently go fuck itself — or so said the law. When Stevens asked the GAO about what authority Congress has to monitor the Fed, he got back a letter citing an obscure statute that nobody had ever heard of before: the Accounting and Auditing Act of 1950. The relevant section, 31 USC 714(b), dictated that congressional audits of the Federal Reserve may not include “deliberations, decisions and actions on monetary policy matters.” The exemption, as Foss notes, “basically includes everything.” According to the law, in other words, the Fed simply cannot be audited by Congress. Or by anyone else, for that matter.”

Article provides excellent overview of AIG scandal and political angles.

BTW, I am hearing that Rahm Emanuel [2] is bought and sold by Goldman Sachs.  More confirmation that we need to change the caption on the money to read “In Goldman Sachs We Trust,” [3]a la Galbraith, of course.

– Chris


The Big Takeover [1]
Rolling Stone, Mar 19, 2009 12:49 PM


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2009/03/rolling-stone-the-big-takeover-aig-bailout-as-political-revolution-by-wall-street/

URLs in this post:

[1] The Big Takeover : http://www.rollingstone.com/politics/story/26793903/the_big_takeover

[2] Rahm Emanuel: http://spectator.org/archives/2009/03/23/plenty-of-rahm-at-the-aig-tabl

[3] “In Goldman Sachs We Trust,” : http://www.istockanalyst.com/article/viewarticle/articleid/2618795

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