Post quoted directly from Market-Ticker.org, along with video giving background as to WHY the Fed is balking, back pedalling about being audited.
"AIG: The Looting Continues
Posted by Karl Denninger July 17, 2009
"No wonder The Fed was threatening Congress when asked about audits - it might expose the underlying realities of something like this:
European banks including Societe Generale SA and BNP Paribas SA hold almost $200 billion in guarantees sold by New York-based AIG allowing the lenders to reduce the capital required for loss reserves. The firms may keep the contracts to hedge against declining assets rather than canceling them as AIG said it expects the banks to do, according to David Havens, managing director at investment bank Hexagon Securities LLC.
$200 billion dollars for foreign banks that we, the taxpayer, have now backstopped through The Fed with zero oversight or approval by Congress?
These aren't even American businesses!
The average weighted length of the European swaps protecting residential loans is more than 25 years, while the span tied to corporate loans is about 6 years, AIG said in a regulatory filing. Contracts covering corporate loans in the Netherlands extend almost 45 years, and the swaps on mortgages in Denmark, France and Germany mature in more than 30 years.
So now we, the American Taxpayer, are backstopping mortgages in Netherlands, Denmark, France and Germany?
Now you know why, and what The Fed and Treasury have done - in black and white.
You have been robbed America, and now they intend to steal $200 billion more - to bail out not Americans but foreigners.
Tell me again why we're doing this, and why people aren't in prison?"