Avoided Ratings by Political Corruption?

~How Citigroup – Citibank avoided downgraded ratings through political corruption

Going back a few years will explain how the few with big political connections circumvented and maneuvered the system to protect a failing Citigroup conglomerate with deception. It appears that there wasn’t anything the Secretary of Treasury, head of the OCC or the Federal Reserve would not do to protect this one bank and their offshoots. The FDIC went along with this trail of destruction – throwing billions after billions of taxpayers money down this rathole. Tim Geithner, then secretary, made it clear that Citi would be saved at any price. Geithner refused to let Citi be broken up to be more manageable – Citi would not be held accountable for its horrific actions. The FDIC has a program called TL GP – the money from this was to help in lending situations but as usual Citi went outside the box and used this program’s money to pay dividends to special shareholders. To supply its securities dealers activities then Citi came up with cooking the books to make it look like that they were raising money for their insured Citibank operations.
And guess what – that ended that. The secretary-treasurer, the FDIC and the rest knew but did nothing with Citi’s game of money plays. Because of all the billions and billions of dollars Citi got from the government programs – the OCC insisted Citi’s ratings could be covered up and propped up so Citi would not be put on the FDIC’s list of troubled banks – got any questions now why this bank was not allowed to go into foreclosure or fold? Check out the “merry men” bank accounts – moving on – anything and everything to keep Citi from going under which it already was. The false facade propped up by taxpayers billions and the lies, deceit and tricks played on homeowners to keep Citi off the troubled bank list. Another cover-up – remember the “stress test” that the banks were to follow – the administrator, Tim Geithner made a big deal out of that was going to save the world from the bank. Well guess what people? – All the banks except, that’s right, you got it – Citi did not come up to meet the requirements of this “stress tests”. It was past time to put Citi on the “troubled bank list” – their ratio was down, way down – the government needed to salvage as much as they could from this mess and get out but that won’t happen if you have the right political connections at the right time – so what happened? The treasury and the Federal Reserve board refused and the FDIC went along. So once again, the deck is stacked. Still, Citi was not downgraded in its ratings due to a special interest that also went for the big AIG bailout. The insurance of the treasury, the Fed, the FDIC and OCC backed with the bailout of 170 billion from the taxpayers – if you remember the New York Times ran a story of what AIG was going to do and did. AIG gave $165 million of the taxpayers money that these government groups handed over to AIG to their employees as bonuses. These bonuses of 165 million went to the very employees that went to the government for a handout crying they would go out of business if not bailed out – what kind of a government bails out an insurance company with tax dollars to the tune of 170 billion and more to come. A end, puts the blame for this mess on homeowners that were crooked over by these. Well, the secretary of treasury, Tim Geithner knew the money was going for these bonuses. So you could ask, what was his gain in this unscrupulous immoral act against the very homeowners he refused to help, only put the blame on them for the illegal fraudulent tricks the borrowers and homeowners were subjected to and still are. Millions of foreclosures while these live high and mighty instead of firing or getting rid of the big bonuses, employees who caused the AIG mess – if there was one? The administration, the FDIC, the treasury came up with a game plan to cover for this oversized non-bank, insurance company that just got 170 billion of taxpayers money. Were these people punished, charged, dismissed? No – were the bonuses stopped? – No – so what happened – instead of doing anything about this, the FDIC ask for more authority to control future misconduct – nothing was done about the present situation of this asinine conduct of the AIG bonuses. These government entities were out for power grabbing. Well, what happened – the meeting of these “minds” came up with giving the government more power to keep doing bailouts. Why bother Congress – let’s just keep on giving tax dollars in bailouts for these too big to fail as holes called banks – non-banks, insurance companies, whatever. Oh yes, the bonuses to keep these criminals working – they are apparently liked and approved of the taxpayers picking up the tab if these institutions failed – good plan – for the crooks. The FDIC chairman had a chance to speak up and hold firm to cut the big bonuses – when asked by the administrator what to do. Stop the bonuses, bring charges against those responsible for the AIG situation that gave AIG billions of tax dollars – the FDIC at that point had a chance to stand up for the homeowners – but that did not happen. More meeting, more talks, more ass kissing and the game went on.
The contributor is not an attorney and the article is not intended to give advice.