AIG's Derivative Unit - Who's brainstorm? Federal Res. Conflicting Interests?

[WhiskeyGirl]

I've often read that AIG was solvent, except for the derivatives and credit defaults.  Apparently, this one small piece was the achilles heel of AIG.

From what I remember, the derivatives and credit defaults were a recent addition.

Who decided that AIG had to get into derivatives and CDO's?

Who was the mastermind?

Where did they get their training?  Federal Reserve?  Investment bank?

Who laid the foundation for these losses?  Someone had to have come up with this brainstorm.  Was it an internal person?  Or, an external person?  Part of the job rotation?

Who kept it going? 

Why didn't someone put on the brakes?

Who marketed these investments?

Who sold them?  What were their credentials to market these things?  Training?  Education?


Was AIG set up to fail?  Take taxpayer money down the toilet and bail out some other organizations?

The Federal Reserve is a private bank, and has it's own portfolio of investments.  It makes/reports outrageous profits.

Isn't there some kind of conflict of interest in the Federal Reserve auditing the SEC filings of others before they are submitted?

How many conflicts of interest does the Federal Reserve have?

Maybe there needs to be a closer look at the origins of the problem at AIG.


I think a robust audit of the Federal Reserve is overdue.

jmho

[WhiskeyGirl]

NY Fed did not provide necessary documents on swaps-Issa

Stocks  |  Regulatory News  |  Bonds

* NY Fed has stonewalled committee from get go-Issa

(Adds quote from Towns spokeswoman)

By David Lawder

WASHINGTON, Jan 20 (Reuters) - U.S. Rep. Darrell Issa, the lawmaker investigating insurer AIG's payments to banks, said on Wednesday the Federal Reserve Bank of New York's submission of documents to a congressional committee is "incomplete."

http://www.reuters.com/article/idUSN2017239620100120

How long has the Federal Reserve been involved in AIG's problems?  If they were clueless in 2008, did they make bad judgement?

Did they have knowledge of the problem years earlier? 

How would any taxpayer know if they are getting screwed by the Federal Reserve and their 'investment portfolio'?

How many conflicts does the Federal Reserve have in their secret portfolio?