Sunday, July 04, 2010

The Jester

That's the last name of a contractor who advised the Treasury in the AIG matter. You may recall that the Treasury ordered AIG to pay 100 cents on the dollar to the banks that had made credit-default swaps with AIG. Of course, AIG paid the banks with our dollars. How does Mr. Jester fit into this story?

He was pushing for AIG to make full payment so Goldman and others would not have to take a loss. One could say that there were differing opinions on the matter. However, it seems that Mr. Jester may not have had our best interests at heart as he was a stockholder in and former deputy CFO of Goldman. I guess Tim didn't see anything wrong with that. Surely, he should have been aware of the conflict as in the two-month period when AIG was cratering he spoke with Mr. Jester over a hundred times by telephone; that's almost twice a day. I don't think that they were talking about the Jets. 

When will Geithner resign?

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