Spitzer had a great take on AIG:
"Everybody is rushing to condemn AIG's bonuses, but this simple scandal is obscuring the real disgrace at the insurance giant: Why are AIG's counterparties getting paid back in full, to the tune of tens of billions of taxpayer dollars?
For the answer to this question, we need to go back to the very first decision to bail out AIG, made, we are told, by then-Treasury Secretary Henry Paulson, then-New York Fed official Timothy Geithner, Goldman Sachs CEO Lloyd Blankfein, and Fed Chairman Ben Bernanke last fall. Post-Lehman's collapse, they feared a systemic failure could be triggered by AIG's inability to pay the counterparties to all the sophisticated instruments AIG had sold. And who were AIG's trading partners? No shock here: Goldman, Bank of America, Merrill Lynch, UBS, JPMorgan Chase, Morgan Stanley, Deutsche Bank, Barclays, and on it goes. So now we know for sure what we already surmised: The AIG bailout has been a way to hide an enormous second round of cash to the same group that had received TARP money already.
It all appears, once again, to be the same insiders protecting themselves against sharing the pain and risk of their own bad adventure. The payments to AIG's counterparties are justified with an appeal to the sanctity of contract. If AIG's contracts turned out to be shaky, the theory goes, then the whole edifice of the financial system would collapse.
But wait a moment, aren't we in the midst of reopening contracts all over the place to share the burden of this crisis? From raising taxes—income taxes to sales taxes—to properly reopening labor contracts, we are all being asked to pitch in and carry our share of the burden. Workers around the country are being asked to take pay cuts and accept shorter work weeks so that colleagues won't be laid off. Why can't Wall Street royalty shoulder some of the burden? Why did Goldman have to get back 100 cents on the dollar? Didn't we already give Goldman a $25 billion capital infusion, and aren't they sitting on more than $100 billion in cash? Haven't we been told recently that they are beginning to come back to fiscal stability? If that is so, couldn't they have accepted a discount, and couldn't they have agreed to certain conditions before the AIG dollars—that is, our dollars—flowed?
But wait a moment, aren't we in the midst of reopening contracts all over the place to share the burden of this crisis? From raising taxes—income taxes to sales taxes—to properly reopening labor contracts, we are all being asked to pitch in and carry our share of the burden. Workers around the country are being asked to take pay cuts and accept shorter work weeks so that colleagues won't be laid off. Why can't Wall Street royalty shoulder some of the burden? Why did Goldman have to get back 100 cents on the dollar? Didn't we already give Goldman a $25 billion capital infusion, and aren't they sitting on more than $100 billion in cash? Haven't we been told recently that they are beginning to come back to fiscal stability? If that is so, couldn't they have accepted a discount, and couldn't they have agreed to certain conditions before the AIG dollars—that is, our dollars—flowed?
The appearance that this was all an inside job is overwhelming. AIG was nothing more than a conduit for huge capital flows to the same old suspects, with no reason or explanation.
So here are several questions that should be answered, in public, under oath, to clear the air:
What was the precise conversation among Bernanke, Geithner, Paulson, and Blankfein that preceded the initial $80 billion grant?
Was it already known who the counterparties were and what the exposure was for each of the counterparties?
What did Goldman, and all the other counterparties, know about AIG's financial condition at the time they executed the swaps or other contracts? Had they done adequate due diligence to see whether they were buying real protection? And why shouldn't they bear a percentage of the risk of failure of their own counterparty?
What is the deeper relationship between Goldman and AIG? Didn't they almost merge a few years ago but did not because Goldman couldn't get its arms around the black box that is AIG? If that is true, why should Goldman get bailed out? After all, they should have known as well as anybody that a big part of AIG's business model was not to pay on insurance it had issued.
Why weren't the counterparties immediately and fully disclosed?
Failure to answer these questions will feed the populist rage that is metastasizing very quickly. And it will raise basic questions about the competence of those who are supposedly guiding this economic policy."
http://www.slate.com/id/2213942/
And so, this week, client 9's girl, Ashley Dupre, is seeking redemption also. Here's her latest story:
"Ok – this is a long one – but it’s the first time I’ve blogged in an entire year, so I have a lot to say. This past year has been a difficult one, but it has also been a period of awakening for me. I’ve gained a perspective on life that I probably never would have been able to achieve if not for all of the heartache. In great part, discovering my identity came through the quiet reflection I enjoyed while practicing yoga, and the inner strength I’ve developed attracts powerful things. I’m seeing that the stronger I am at my core, the more natural and effortless it becomes to draw positive people and uplifting experiences into my life. For example, never in my wildest dreams would I have imagined befriending Russell Simmons while taking class at a yoga school I started going to in the past year. This school has been the safe haven for my self-study and spiritual development. The more I know my true self, the more I come to have faith that my presence on earth means more or at least has different meaning than the media or disbelievers have tried to frame it to be. Russell was there, reaching out to give me hand placement tips and educate me about the virtues of yoga that he’s discovered throughout the years. He explained the importance of understanding that our actions sometimes have far reaching consequences – a lesson that certainly resonated with me. And never would I have imagined finding my new fairy godmother, Kelly Cutrone, who has become such an inspiration to me and stood by me even at her own expense. I am blessed to have them and other people in my life who are honest, positive and want to help me walk a better path.
For the answer to this question, we need to go back to the very first decision to bail out AIG, made, we are told, by then-Treasury Secretary Henry Paulson, then-New York Fed official Timothy Geithner, Goldman Sachs CEO Lloyd Blankfein, and Fed Chairman Ben Bernanke last fall. Post-Lehman's collapse, they feared a systemic failure could be triggered by AIG's inability to pay the counterparties to all the sophisticated instruments AIG had sold. And who were AIG's trading partners? No shock here: Goldman, Bank of America, Merrill Lynch, UBS, JPMorgan Chase, Morgan Stanley, Deutsche Bank, Barclays, and on it goes. So now we know for sure what we already surmised: The AIG bailout has been a way to hide an enormous second round of cash to the same group that had received TARP money already.
It all appears, once again, to be the same insiders protecting themselves against sharing the pain and risk of their own bad adventure. The payments to AIG's counterparties are justified with an appeal to the sanctity of contract. If AIG's contracts turned out to be shaky, the theory goes, then the whole edifice of the financial system would collapse.
But wait a moment, aren't we in the midst of reopening contracts all over the place to share the burden of this crisis? From raising taxes—income taxes to sales taxes—to properly reopening labor contracts, we are all being asked to pitch in and carry our share of the burden. Workers around the country are being asked to take pay cuts and accept shorter work weeks so that colleagues won't be laid off. Why can't Wall Street royalty shoulder some of the burden? Why did Goldman have to get back 100 cents on the dollar? Didn't we already give Goldman a $25 billion capital infusion, and aren't they sitting on more than $100 billion in cash? Haven't we been told recently that they are beginning to come back to fiscal stability? If that is so, couldn't they have accepted a discount, and couldn't they have agreed to certain conditions before the AIG dollars—that is, our dollars—flowed?
But wait a moment, aren't we in the midst of reopening contracts all over the place to share the burden of this crisis? From raising taxes—income taxes to sales taxes—to properly reopening labor contracts, we are all being asked to pitch in and carry our share of the burden. Workers around the country are being asked to take pay cuts and accept shorter work weeks so that colleagues won't be laid off. Why can't Wall Street royalty shoulder some of the burden? Why did Goldman have to get back 100 cents on the dollar? Didn't we already give Goldman a $25 billion capital infusion, and aren't they sitting on more than $100 billion in cash? Haven't we been told recently that they are beginning to come back to fiscal stability? If that is so, couldn't they have accepted a discount, and couldn't they have agreed to certain conditions before the AIG dollars—that is, our dollars—flowed?
The appearance that this was all an inside job is overwhelming. AIG was nothing more than a conduit for huge capital flows to the same old suspects, with no reason or explanation.
So here are several questions that should be answered, in public, under oath, to clear the air:
What was the precise conversation among Bernanke, Geithner, Paulson, and Blankfein that preceded the initial $80 billion grant?
Was it already known who the counterparties were and what the exposure was for each of the counterparties?
What did Goldman, and all the other counterparties, know about AIG's financial condition at the time they executed the swaps or other contracts? Had they done adequate due diligence to see whether they were buying real protection? And why shouldn't they bear a percentage of the risk of failure of their own counterparty?
What is the deeper relationship between Goldman and AIG? Didn't they almost merge a few years ago but did not because Goldman couldn't get its arms around the black box that is AIG? If that is true, why should Goldman get bailed out? After all, they should have known as well as anybody that a big part of AIG's business model was not to pay on insurance it had issued.
Why weren't the counterparties immediately and fully disclosed?
Failure to answer these questions will feed the populist rage that is metastasizing very quickly. And it will raise basic questions about the competence of those who are supposedly guiding this economic policy."
http://www.slate.com/id/2213942/
And so, this week, client 9's girl, Ashley Dupre, is seeking redemption also. Here's her latest story:
"Ok – this is a long one – but it’s the first time I’ve blogged in an entire year, so I have a lot to say. This past year has been a difficult one, but it has also been a period of awakening for me. I’ve gained a perspective on life that I probably never would have been able to achieve if not for all of the heartache. In great part, discovering my identity came through the quiet reflection I enjoyed while practicing yoga, and the inner strength I’ve developed attracts powerful things. I’m seeing that the stronger I am at my core, the more natural and effortless it becomes to draw positive people and uplifting experiences into my life. For example, never in my wildest dreams would I have imagined befriending Russell Simmons while taking class at a yoga school I started going to in the past year. This school has been the safe haven for my self-study and spiritual development. The more I know my true self, the more I come to have faith that my presence on earth means more or at least has different meaning than the media or disbelievers have tried to frame it to be. Russell was there, reaching out to give me hand placement tips and educate me about the virtues of yoga that he’s discovered throughout the years. He explained the importance of understanding that our actions sometimes have far reaching consequences – a lesson that certainly resonated with me. And never would I have imagined finding my new fairy godmother, Kelly Cutrone, who has become such an inspiration to me and stood by me even at her own expense. I am blessed to have them and other people in my life who are honest, positive and want to help me walk a better path.
I’ve learned a lot about responsibility and how the choices you make can alter the way your life plays out. I can now see how there were a series of pivotal moments in my life that set me down a certain roads, and once you’re on those roads you can’t turn back. Some of my decisions were good, some bad, but I accept them as part of what defines me now. And I’ve learned a lot about gratitude. No matter what life brings, there is always so much to be thankful for. When I was going through everything this year, I felt as if I was suffocating at times. But when I focused my energy on the good, it somehow made breathing a little easier. I was thankful that my mother’s MS didn’t flare up. I was thankful that my brother had just gotten out of rehab and he seemed to be the strongest one of all of us. I was thankful to be able to be with my family again and that they forgave me. If I instead only focused on the bad, it would have eaten me alive.
I am now 23 years old and I’ve made more mistakes than most people make in a lifetime. But to look back and see all that I have overcome, and to stand here, and actually still be here at all, that is a huge achievement. I am proud of myself for surviving. I am proud of myself for going through each phase of my life and wanting to take that next step, even if it was the wrong step. All that I have gone through has shaped me into who I am today - and I like myself. I am a work in progress. I am imperfect. And that is okay.
One of the things Russell shared with me is the role that charity plays in his life. I want that in my life. I want the book I’m working on to inspire people and not just be a trivial account of the business I was in. I hope that from my story, I can help someone and save them from making the same mistakes and choices that I made. This isn’t easy for me. I don’t like to talk about it because it really hurts. I’ve worked so hard to move on and I don’t want to relive it. But I know I have to if anything good is going to come out of this. I don’t want it all to be for nothing. I hope people allow me to be brutally honest without judging me. I hope that someday I can gain the respect of people for who I am rather than being defined only by the mistakes I’ve made. Thanks to everyone who is giving me that chance.
-Ashley"
http://globalgrind.com/source/www.flawlesshustle.com/494535/ashley-dupre-surviving-spitzer-globalgrindcom-exlcusive/
I am now 23 years old and I’ve made more mistakes than most people make in a lifetime. But to look back and see all that I have overcome, and to stand here, and actually still be here at all, that is a huge achievement. I am proud of myself for surviving. I am proud of myself for going through each phase of my life and wanting to take that next step, even if it was the wrong step. All that I have gone through has shaped me into who I am today - and I like myself. I am a work in progress. I am imperfect. And that is okay.
One of the things Russell shared with me is the role that charity plays in his life. I want that in my life. I want the book I’m working on to inspire people and not just be a trivial account of the business I was in. I hope that from my story, I can help someone and save them from making the same mistakes and choices that I made. This isn’t easy for me. I don’t like to talk about it because it really hurts. I’ve worked so hard to move on and I don’t want to relive it. But I know I have to if anything good is going to come out of this. I don’t want it all to be for nothing. I hope people allow me to be brutally honest without judging me. I hope that someday I can gain the respect of people for who I am rather than being defined only by the mistakes I’ve made. Thanks to everyone who is giving me that chance.
-Ashley"
http://globalgrind.com/source/www.flawlesshustle.com/494535/ashley-dupre-surviving-spitzer-globalgrindcom-exlcusive/
Get them both in the press!
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