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Giant International Swindle of U.S. Funds Demands A New Pecora Commission!
March 17, 2009 (LPAC)--Figures released by AIG over the weekend show that most of the $170 billion given so far by the U.S. government to the bankrupt insurer went straight to some of the largest banks in the world, including $12.9 billion to Goldman Sachs, $11.9 billion to France's Societe Generale, and $11.8 billion to Germany's Deutsche Bank, with lesser amounts going to a variety of U.S. and European banks, and Canada's Bank of Montreal. Overall, foreign banks took in just under $60 billion dollars of the U.S. bailout funds. While not counted as such, the government has clearly turned AIG into another bailout facility, one that is being used surreptitiously bail out foreign as well as U.S. banks.
"This great international swindle of U.S. funds demands a new Pecora Commission,'' Lyndon LaRouche stated today. "The bailout was a mistake, one which will destroy civilization if not corrected.'' LaRouche called for a return to Constitutional law, as a way of establishing a framework under which we can solve the problem. "The existing framework did not work,'' he said. "We will have to have a new Pecora Commission immediately. This will, in and of itself, create the right environment. Otherwise, the American people will lynch them!''
Rather than declaring AIG insolvent and putting it into receivership, the Bush Administration decided to prop it up to protect the derivatives markets, and the bankrupt banks which play there. As a result, the government has found itself pouring money into a black hole, and having the taxpayers bail out the derivatives bets of some of the most corrupt institutions in the world. This must stop, and it must stop now! The government should declare all derivatives contracts null and void, which immediately solves the AIG problem, and then put the banking system itself under bankruptcy protection, freezing the great mass of speculative paper and other debts, while protecting the people and keeping the physical economy functioning.
We should not negotiate with AIG! It is bankrupt, it is now owned by the U.S. taxpayers, and its affairs should be run for the benefit of the nation, not the parasites who created this crisis. The derivatives traders at AIG should not be seeking bonuses--they should consider themselves damn lucky they haven't already been thrown in jail. AIG's Financial Products division should be treated as a racketeering operation under the Federal RICO statutes, and the new Pecora Commission should determine whether other units within AIG, or the entire company, deserves similar treatment. Let AIG become the model by which we deal with the criminality which has permeated our financial system. It's time to show the parasites that they no longer run the world.
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