Preet Bharara: Wall Street's Biggest Enemy! Obama Appointee

Under George W. Bush's Administration Insider Trading & Securities Fraud Peaked (i.e., Bernie Madoff Among Others).

Due To The Republican Party's Bitter Revulsion Of Regulation & In Exchange For Fat Campaign Checks, GOP Lawmakers Turned A Blind Eye & Deaf Ear To Corporate/ Financial Crimes.

Then Comes The Nov. 2008 Election Which Ushers In Pres. Obama!

He Comes In Smiling Like A Subservient Lamb, Fooling Everyone!

This Smiling, Shrewd, "Subservient" Lamb Delivers A Powerful Blow To Wall Street By Appointing U.S. Attorney Preet Bharara To The Manhattan Office.

Mr. Bharara Is Now Wall Street's Biggest ENEMY!

Ha Ha Ha!

CAUTION:

I Strongly Advise Mr. Bharara To Watch His Back!

Former NY Governor Eliot Spitzer Once Went After Wall Street's Crooks And Look What Happened To Him.

Let Me Be Clear Despite My Disagreements With Pres. Obama's Administration In The Past On Some Issues, I Am Without A Doubt, Boldly Endorsing Pres. Barack Obama For Re-election In 2012!

Its NOT Unusual For A Politician's Constituents To Disagree With Them On Certain Issues Because Human Beings Are Individuals.

However At The End of The Day Its About Who's STILL Standing By Their Side.

I Stand By Pres. Obama's Side!

Visit msnbc.com for breaking news, world news, and news about the economy

U.S. Attorney Sends a Message to Wall Street

Every few days during the trial of Raj Rajaratnam, the Galleon Group’s co-founder, Preet Bharara, the United States attorney for the Southern District of New York, would quietly enter the courtroom and take a seat in the last row of the gallery.

From that unassuming vantage point, Mr. Bharara watched his colleagues try to persuade a jury to convict the former hedge fund titan of securities fraud and conspiracy.

The consistent presence of Mr. Bharara at the largest insider trading case in a generation — and the office’s resounding victory on Wednesday — signaled that the chief federal prosecutor in Manhattan was back as the sheriff of Wall Street.

Over the last decade, the New York attorney general, federal prosecutors in Brooklyn, the Manhattan district attorney and even the Justice Department in Washington angled for their share of financial fraud cases, an area traditionally dominated by the Southern District. For example, Eliot Spitzer grabbed headlines when he was New York attorney general by focusing on malfeasance at investment banks.

But Mr. Bharara has not-so-quietly reaffirmed his office’s leading role in pursuing corporate crime with this landmark insider trading case, which relied on aggressive prosecutorial methods and unprecedented tactics. For the first time, federal authorities used wiretaps to listen in on stock traders swapping illegal tips.

“What this case has done,” said Neil M. Barofsky, a former Southern District prosecutor who recently served as the special inspector general for the government’s Troubled Asset Relief Program, “goes well beyond simply putting a billionaire hedge fund manager behind bars.”

“The case will impact an entire industry,” Mr. Barofsky said. He said that Mr. Bharara “did more than just oversee and support the prosecution — he made sure that the target audience, traders on Wall Street, fully understood the extraordinary lengths that his office will go to discover these crimes, and that justice will be served.”

It has been 21 months since Mr. Bharara, 42, was appointed United States attorney by President Obama.

In that short tenure, his staff has ventured far beyond Wall Street, prosecuting some of the nation’s — and the world’s — most prominent defendants. Among them: Faisal Shahzad in the Times Square bomb plot; agents in a Russian spy ring; Ahmed Khalfan Ghailani, the first Guantánamo Bay detainee to be tried in the civilian system; Viktor Bout, a Russian accused of being an arms trafficker; a Somali man charged with piracy; and four men charged in a plot to bomb synagogues in the Bronx.

Not every case has gone smoothly. In Mr. Ghailani’s trial, the jury acquitted him of more than 280 counts of murder and conspiracy and convicting him of a single count of conspiracy to destroy government buildings and property. Nonetheless, Mr. Ghailani received a life sentence.

Some academics and newspaper columnists have also criticized Mr. Bharara for not filing criminal charges against senior executives at the center of the financial crisis. Last week, when his office filed a civil mortgage-fraud lawsuit against Deutsche Bank, he said there was not enough evidence to justify a criminal complaint.

Mr. Bharara was an infant in 1970 when he came to the United States from India with his parents. He grew up in Eatontown, N.J., and earned degrees from Harvard and Columbia Law School.

After several years in private practice, including a stint at Gibson Dunn & Crutcher in New York, Mr. Bharara became a federal prosecutor in Manhattan, handling organized crime, narcotics and securities fraud cases. In 2005, he became chief counsel to Senator Charles E. Schumer of New York, leading a Congressional inquiry into the firings of United States attorneys.

Some lawyers have wondered aloud whether Mr. Bharara may have political aspirations like his predecessors, including former New York Mayor Rudolph W. Giuliani, who filled the post in the 1980s. As with Mr. Giuliani, Mr. Bharara is a charismatic figure who is comfortable in front of cameras, can talk tough and has a knack for the witty sound bite. At a news conference announcing Mr. Rajaratnam’s arrest, Mr. Bharara riffed off a famous line from the movie “Wall Street.”

“Greed, sometimes, is not good,” he said.

Unlike Mr. Giuliani, whose political ambitions seemed barely hidden while he led the prosecutor’s office, Mr. Bharara has told friends he has no interest in elected office.

“Everything about Preet’s record suggests that he’s a federal prosecutor for all the right reasons,” said Randy Mastro, a lawyer at Gibson Dunn and a former top deputy under Mayor Giuliani. “The best prosecutors are often those who don’t have political ambitions.”

Mr. Mastro, who overlapped for a time with Mr. Bharara at Gibson Dunn, added, “But that doesn’t mean he shouldn’t be drafted into running.”

Ellen Davis, Mr. Bharara’s spokeswoman, said in a statement on Thursday: “Preet loves his job and has no desire to run for public office now or ever.”

Mr. Bharara has not commented publicly on the Rajaratnam verdict, other than a short statement in a news release. But in a series of speeches, he has explained his aggressive approach to corporate crime.

“When sophisticated business people begin to adopt the methods of common criminals, we have no choice but to treat them as such,” Mr. Bharara said weeks after revealing the use of wiretaps in building a case against Mr. Rajaratnam. “To use tough tactics in these circumstances is not being heavy-handed; it is being even-handed.”

He has taken that approach in other areas of financial crime.

His office secured convictions in two high-profile criminal cases against bank executives accused of stealing proprietary computer code related to high-frequency trading businesses, including a case against a former programmer at Goldman Sachs. More recently, Mr. Bharara’s prosecutors charged the operators of three popular online poker sites with fraud and money laundering.

And Mr. Bharara continues to pursue insider trading cases. Over the last 18 months, his office has charged 47 individuals with insider trading crimes, 36 of whom have pleaded guilty or been convicted. At a recent news conference, he indicated there was more to come.

“I wish I could say we were just about finished, but sadly we are not.”




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Sources: MSNBC, NY Times, Russia Today, Wikipedia, Youtube, Google Maps

Eliot Spitzer To Replace Campell Brown? Or Roland Martin?

Campbell Brown Leaving CNN


Campbell Brown said Tuesday that she's quitting her prime-time show on CNN primarily for one reason: Not enough people are watching her.

CNN has struggled in the prime-time ratings as cable news viewers have increasingly sought edgier, more opinionated programming. Brown, a former NBC News reporter, advertised a "no bias, no bull" persona in a straight news and analysis program with a concentration on politics.

Brown said it was her decision to leave. She said she could say she was leaving to spend more time with her two young children or pursue new opportunities, and both would be partly true.

"But I have never had much tolerance for others' spin, so I can't imagine trying to stomach my own," she said. "The simple fact is that not enough people want to watch my program, and I owe it to myself and to CNN to get out of the way so that CNN can try something else."

(Msnbc.com is a joint venture between NBC and Microsoft.)

Nancy Grace on CNN's sister HLN network averages 745,000 viewers in the time slot, according to the Nielsen Co. Brown's show stands at 574,000.

CNN's prime-time problems with Brown, Larry King and Anderson Cooper have given rise to dozens of armchair program directors who have published advice this spring. Now CNN's executives will have their first shot at doing something new.

CNN/U.S. President Jon Klein said he respects Brown's decision and wishes her well. "We will announce our programming plans in the coming weeks," he said.

Brown's decision comes at a time when CNN has reportedly been talking with CBS News about ways to combine forces, although nothing has been publicly done.

CNN has tested its own ideas, and there's been talk of reviving some version of its old "Crossfire" political debate show, which was a template for opinionated talk on cable in the 1990s. CNN canceled the series soon after Comedy Central's Jon Stewart ridiculed it.

One segment that has appeared on Brown's show features Mary Matalin and Roland Martin in a political debate, an idea that could potentially be expanded.

Brown, who is leaving CNN entirely, noted in a statement her "indomitable" rivals on the other networks.

"Shedding my own journalistic skin to try to inhabit the kind of persona that might co-exist in that lineup is simply impossible for me," she said. "It is not who I am or who I want to be, nor is it who CNN asked me to be at any point. This is the right decision for me and I hope it will be a great opportunity for CNN."




Spitzer’s Name Arises as CNN Tries To Fill a Seat



As CNN moves to replace Campbell Brown in its struggling prime-time lineup, the most intriguing name on the channel’s list is Eliot Spitzer, the disgraced former governor of New York, The New York Times’s Brian Stelter writes.

Mr. Spitzer has held conversations — but so far only informal ones — about becoming a regular contributor to the cable news channel, The Times said, citing two people who were briefed on the matter. But the people said he was not being courted for an anchoring job, meaning he would not directly replace Ms. Brown in the channel’s 8 p.m. time slot.

That word sparked talk inside CNN this week, and even appeared in David Letterman’s monologue Tuesday night. His punch line: “That would be a switch — somebody paying him for an hour.”

Mr. Spitzer resigned the governorship in 2008 after it was revealed that he solicited prostitutes. As attorney general of New York, Mr. Spitzer earned the nickname the “Sheriff of Wall Street,” after he attacked what he considered to be rampant conflicts of interests at big Wall Street firms, winning settlements from many of the big banks.

Now, seemingly wrapping himself in the redemptive spirit of television, Mr. Spitzer is a budding pundit, and he has even tried his hand at anchoring on MSNBC, one of CNN’s competitors. His first two times as a substitute for the anchor Dylan Ratigan were well-received inside MSNBC last month, and he filled in again on Monday.

“He’s a smart guy, extremely smart, and he communicates well,” a cable news executive said of Mr. Spitzer. “The question about him is, how much stench is on him, and is he likable enough?”

MSNBC declined to comment on Mr. Spitzer’s status at the channel, The Times said. But two news executives said MSNBC was not in talks with him about a paid position at the channel. Like the people briefed on Mr. Spitzer’s conversations with CNN, the executives requested anonymity because they were not authorized by their employers to speak on the record.

“I am simply not saying anything about this issue,” Mr. Spitzer said in an e-mail message on Thursday.

As it contemplates what program to place in Ms. Brown’s time slot, CNN is considering a panel discussion program with various political voices. Mr. Spitzer could conceivably be a panelist.

A CNN spokeswoman said the channel would not comment on speculation.


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Sources: CNN, MSNBC, NY Times, Youtube, Google Maps

New York's Corrupt Democrat Party Ruining The State

New York Politics Gone Wild...For Democrats


Once a source of national leaders of both political parties, New York state has descended into a bizarre, riveting spectacle of corruption and political debasement, with its governor facing calls to resign as well as new charges of accepting illicit perks and lying under oath, the dean of its congressional delegation giving up his gavel over corruption charges and another House member announcing he won’t run again amid allegations of sexual harassment.

And that was just yesterday.

The latest, dizzying episodes of political disgrace in New York follow a half-decade of disaster during which three top state politicians were forced out amid allegations of everything from large-scale theft to small-scale sexual indiscretions.

And while Republican leaders have drawn their share of blame (and indictments), New York is now effectively a one-party state. Its current scandals attach themselves to the dominant Democrats, and the riveting soap opera is feeding a narrative of corruption that threatens to deepen the party’s national woes and distract from the White House’s attempt to refocus the country on health care. And it also hastens a decades-long diminution of the state’s 20th-century pre-eminence, a rise powered by the reform-driven Roosevelt presidencies.

“I have never seen a situation in New York, in my entire life, where there are so many legislators who have turned out to be bums — and a couple of executives, too,” said former New York City Mayor Ed Koch, whose third term as mayor dissolved in a humbling scandal at the Parking Violations Bureau.

Albany’s political scandals are a diverse mix, but the current wave began when Alan Hevesi, the respected, professorial state comptroller, was accused first of using his staff for errands and then of selling access to New York’s giant pension fund. Eliot Spitzer followed, driven from office for paying for sex, but already dogged by charges he’d used the state police to spy on his top Republican foe.

That rival, New York Senate Majority Leader Joseph Bruno, a Republican, was next, indicted for allegedly taking bribes. Then on to Rangel, the dean of the congressional delegation and a worthy heir to the man he defeated for the seat, Adam Clayton Powell Jr., who was censured by Congress for corruption that included Caribbean trips. On Wednesday, Rangel stepped down from his chairmanship of the House Ways and Means Committee after the House ethics committee found that he had broken House gift rules by accepting corporate-sponsored travel to the Caribbean.

Paterson, for his part, reportedly intervened in an aide’s domestic violence case and allegedly received free tickets to Yankees games, then lied about it to investigators.

Democrats have dominated the recent scandals, but the party owes its edge over the state’s frayed Republican Party largely to the fact that it has more members in office.

Two Republican congressmen left office in recent years amid ugly scandals: Rep. John Sweeney was defeated after his wife’s reports of domestic abuse became public; he’s now reportedly under investigation in a lobbying case. And Rep. Vito Fossella was forced out when a drunken-driving charge led to the discovery of his second, secret family.

In New York City, meanwhile, prosecutors just finished tending to one of former Mayor Rudy Giuliani’s top aides, Bernard Kerik, the former police commissioner, who was convicted on corruption charges. And the city has heard a steady drumbeat of lower-level indictments, with members of the state Assembly, state Senate and City Council marching to the courthouse on charges ranging from extortion to domestic violence.

At this point, only two of the six statewide elected officials, Sen. Chuck Schumer and Attorney General Andrew Cuomo, were actually elected to the positions they hold.

The hail of dropping shoes has shocked even the state’s blithest political operatives.

“It used to be, you could at least look across the river at New Jersey and feel good about yourself. Those days are gone,” mourned Kevin Sheekey, Mayor Michael Bloomberg’s longtime political adviser, adding, “It’s going to get worse before it gets worse.”

New York loves to reflect on itself, and the city’s scholars say the core of its political problems is one that haunts old Democratic bastions everywhere: The old, vibrant, flawed Democratic machines have collapsed, but they haven’t really been replaced by anything.

“We’ve cut off our new sources of talent and basically kept young people out,” said Mitchell Moss, a professor of urban planning at New York University. “[Rep. Edolphus] Towns and [Former Rep. Major] Owens and Rangel were very tough on young African-American politicians. You had to be a blood relation to get anywhere.

“And the only way we had a woman [in statewide office] was Hillary Clinton coming in or [Sen.] Kirsten Gillibrand getting appointed,” he said.

Rangel is a fixture of the Democratic establishment, one of a “gang of four” that dominated Harlem politics for decades. Paterson is the son of another of that group.

Their simultaneous fall “is the end of the Democratic machine,” said Vincent Cannato, a New York historian and biographer of the late Mayor John Lindsay.

One mark of the empty talent pool: The state’s elite have pinned their hopes on the appointed lieutenant governor, Richard Ravitch, to save the legislative sessions. Ravitch is 76, emerged from retirement to take the job and plans to return to private life in the fall.

Other scandals have been less predictable — or explicable. Spitzer’s fall was triggered by private vice. And Democrats in the White House and in Congress are deeply concerned about the fallout from allegations of sexual harassment directed at upstate Rep. Eric Massa by a male aide.

POLITICO broke the news of the charges Wednesday afternoon, which partially drowned out the White House’s attempt to focus on health care. The report, and the subsequent news that House Majority Leader Steny Hoyer knew of the allegations, raised a troubling echo of the 2006 revelations about former Rep. Mark Foley (R-Fla.), who dragged his party down with him in a scandal over inappropriate contact with House pages.

While Washington Democrats cast pained glances at New York, New York Republicans are seeking to capitalize on the situation. Massa’s vacant seat is a likely Republican pickup, and the gathering storm has endangered congressional Democrats in a delegation that is down to a sole Republican.

“If Gillibrand has a close race, Republicans could make three to five House seats very competitive in New York,” said Bill Cunningham, a former executive director of the New York State Democratic Party.

Republican gubernatorial candidate Rick Lazio Wednesday released a Web video featuring a “Democrats’ Hall of Shame” and calling for “fundamental change.”

The havoc is likely to have an immediate and unpredictable effect on the state’s fiscal future, already imperiled by an $8 billion deficit. Rangel's forced exit saps New York of a major defender on the Hill and leaves the state without control of a marquee committee in the House — at a time when California Democrats including Speaker Nancy Pelosi, Energy and Commerce Committee Chairman Henry Waxman and Education and Labor Committee Chairman George Miller are already hogging the top slots.

The most powerful New Yorkers post-Rangel occupy far less lofty perches: Upstater Louise Slaughter runs the Rules Committee, a powerful post but one that leaves her outside the inner circle of leadership; eastern New York’s Towns runs the House oversight panel but is often a step behind the ranking Republican, Darrell Issa; and Brooklynite Nydia Velazquez is chairwoman of the Small Business Committee, which controls a relatively small budget.

The scandals have also badly damaged the state’s clout in Washington, according to Rep. Anthony Weiner, a Democrat from Brooklyn.

He said he saw an immediate demonstration of New York's reduced clout on Wednesday, when a delegation of 12 Democrats from the state called a meeting with Pelosi to address their concerns that the Senate version of the health reform bill would seriously shortchange the New York.

"You probably could have accomplished as much as we did with a call to Nancy [Pelosi] by Charlie Rangel," Weiner told POLITICO.

"Look, Charlie was a powerful voice for New York in a place where we badly need it,” Weiner added. “We're not powerless, but we're definitely less powerful than we were ... . It's bad."

It’s a Democrat, though, who seems best positioned to capitalize, at least for now, on his party’s collapse: Attorney General Andrew Cuomo, son of former Gov. Mario Cuomo, who has kept his nose clean and is currently investigating Paterson.

Veteran Village Voice investigative reporter Wayne Barrett, who has exposed a score of scandals in Albany and City Hall, said, “I’ve never seen anything like this." But he sees the possibility of stability looming on the political horizon, in the form of Cuomo, the state’s Prince Hal.

“Every power player in New York has been swept aside in what seems like an instant,” said Barrett. “Where does this all end?... I guess the only great hope is Cuomo.”





A Generation of New York City's Corrupt Pols Laid Low


Steven Rattner, former New York Times reporter, failed media investment firm founder, friend of Bloomberg and Sulzberger, and Car Czar, is one more former political star caught up in the New York pension fund scandal.

As the NY Times and WSJournal report today, the SEC is investigating Quandrangle Group founder and crazy social climber Rattner for paying $1 million to play with the state's massive pension fund.

The state pension fund was just a hilarious morass of corruption, mostly revolving around former comptroller Alan Hevesi, who was the sole trustee of the whole system. Charges have been filed against former deputy comptroller David Loglisci and Hevesi pal (in Post parlance) Hank Morris.

Morris, a Democratic political consultant who ran Chuck Schumer's '98 and '04 campaigns, was the man to send your massively inflated "finders' fees" to in exchange for pension business. Morris and Lovlisci made tens of millions in kickbacks, because they directed the "alternative investments" wing of the $122 billion fund.

And just this week former Liberal Party chair Ray Harding was charged with accepting $800,000 in reward money (from the Morris kickback pool) for some favors he did for Hevesi. Is anyone else growing to like this Andrew Cuomo kid?

So! Quadrangle—meaning Rattner—paid $90k to acquire a shitty movie Loglisci produced, and three weeks later they were doing $100 million worth of business with the pension fund. Shortly after that, Quadrangle paid $1.1 million in fees to Hank Morris.

Here is the film, Chooch, that actual legitimate investment firms invested in, in order to get that sweet pension business. Let's just quote the entire plot summary:

The life of Queens resident Dino Condito is about to take a surprising turn. After letting down his softball team by striking out in the bottom of the ninth against Hoboken, his crew brands him the chooch. Trying to cheer up his cousin Dino, Jubilene Condito cashes in his savings from his first holy communion and springs for a vacation to Cancun.

You mean leave Queens? asks Dino, as if the thought had never occurred to him. But there's a mix-up on the way to the airport involving a mysterious bag of money. As soon as Dino and Jube land in Mexico, they're abducted by a pair of thugs and left in the desert at the mercy of a trio of soldiers.

It takes reuniting Dino's old Queens crew, including Dino's beloved pet dachsund, to save the two cousins. Only after a jail bust, donkey ride, chicken coop explosion, and a life-changing love affair at the local bordello does the crew finally arrive to save the day. Returning home in triumphant glory with his reunited crew and newfound love Ladonna, Dino discovers the meaning of family, friendship and neighborhood.

Oh man. Rattner paid almost six figures for the rights to distribute the DVD of this heartwarming action-comedy. The only user comment is a 2-star pan from someone who knows an actress with a bit part in the movie from back home in Denver. Hah. Chooch: the shitty low-budget mob mix-up comedy that brought down a large segment of the early-2000s New York political establishment.

And now Rattner will save the auto industry for Barack Obama, who hired him because Rattner millions in donations to get himself out of the investment business and into Democratic politics.


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Sources: Politico, Gawker, NY Times, Wall Street Journal, Washington Post, Google Maps

Spitzer To AIG: "Show Us Company Ponzi Scheme E-mails!"

Show Us the E-Mails

(NY Times Op-Ed By ELIOT SPITZER, FRANK PARTNOY and WILLIAM BLACK)



We end this extraordinary financial year with news that the Treasury is in discussions with American International Group about selling the taxpayers’ 80 percent ownership stake in that company. The government recently permitted several banks to break free of its potential oversight by repaying loans made during the rescue. But with respect to A.I.G., the Treasury should not move so fast. There is one job left to do.

A.I.G. was at the center of the web of bad business judgments, opaque financial derivatives, failed economics and questionable political relationships that set off the economic cataclysm of the past two years. When A.I.G.’s financial products division collapsed — ultimately requiring a federal bailout of $180 billion — those who had been prospering from A.I.G.’s schemes scurried for taxpayer cover. Yet, more than a year after the rescue began, crucial questions remain unanswered. Who knew what, and when? Who benefited, and by exactly how much? Would A.I.G.’s counterparties have failed without taxpayer support?

The three of us, as experienced investigators and prosecutors of financial fraud, cannot answer these questions now. But we know where the answers are. They are in the trove of e-mail messages still backed up on A.I.G. servers, as well as in the key internal accounting documents and financial models generated by A.I.G. during the past decade. Before releasing its regulatory clutches, the government should insist that the company immediately make these materials public. By putting the evidence online, the government could establish a new form of “open source” investigation.

Once the documents are available for everyone to inspect, a thousand journalistic flowers can bloom, as reporters, victims and angry citizens have a chance to piece together the story. In past cases of financial fraud — from the complex swaps that Bankers Trust sold to Procter & Gamble in the early 1990s to the I.P.O. kickback schemes of the late 1990s to the fall of Enron — e-mail messages and internal documents became the central exhibits in our collective understanding of what happened, and why.

So far, prosecutors and regulators have been unable to build such evidence into anything resembling a persuasive case against any financial institution. Most recently, a jury acquitted Bear Stearns employees of fraud related to the collapse of the subprime mortgage market, in part because available e-mail messages suggested the employees had done nothing wrong.

Perhaps A.I.G.’s employees would also be judged not guilty. But we would like to see the record to find out. As fraud investigators, we would like to examine the trading patterns of A.I.G.’s financial products division, and its communications with Goldman Sachs and other bank counterparties who benefited from the bailout. We would like to understand whether the leaders of A.I.G. understood that they were approaching a financial Armageddon, and whether they alerted their counterparties, regulators and shareholders to the impending calamity.

We would like to see how A.I.G. was able to pay huge bonuses to its officers based on the short-term income they received from counterparties for selling guarantees that, lacking adequate loss reserves, the companies would never be able to honor. We would also like to know what regulators knew, and what they did with the information they had obtained.

Congress wants answers, too. This month, during hearings on Ben Bernanke’s nomination to a second term as chairman of the Federal Reserve, several senators fumed about being denied access to his A.I.G.-related documents.

No doubt, some of the e-mail messages contain privileged conversations among lawyers. Others probably include private information that is irrelevant to A.I.G.’s role in the crisis. But the vast majority of these documents could be made public without legal concern. So why haven’t the Treasury and the Federal Reserve already made sure the public could see this information? Do they want to protect A.I.G., or do they worry about shining too much sunlight on their own performance leading up to and during the crisis?

A.I.G.’s board of directors, a distinguished group of senior business executives, holds the power to decide whether to publish the e-mail messages and other documents. But those directors serve at the behest of A.I.G.’s shareholders. And while small shareholders of public corporations generally do not have the right to force publication of internal documents, in this case one shareholder — the taxpayer — holds an 80 percent stake. Anyone with such substantial ownership has effective control over corporate decisions, even if the corporation is a large public one.

Our stake is held by something called the A.I.G. Credit Facility Trust, whose three trustees are Jill M. Considine, a former chairman of the Depository Trust Company and a former director of the Federal Reserve Bank of New York; Chester B. Feldberg, a former New York Fed official who was chairman of Barclays Americas from 2000 to 2008; and Douglas L. Foshee, chief executive of the El Paso Corporation and chairman of the Houston branch of the Federal Reserve Bank of Dallas.

Ultimately, these three trustees wield all the power at A.I.G., and have the right to vote out the 11 directors if the directors are unwilling to publish the e-mail messages. In other words, if these three people ask A.I.G.’s board to post the messages and other documents, the board will have no choice but to comply. Ms. Considine, Mr. Feldberg and Mr. Foshee have the opportunity to be among the most effective and influential investor advocates in history. Before A.I.G. escapes, they should demand the evidence.

The longer it remains hidden, the less likely we will be to answer many questions about the A.I.G. collapse and the larger economic crisis — including the most important one: how do we prevent a repeat? Time is the enemy of effective investigation; records disappear, memories fade. The documents should be released — without excuses, or delay.



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Sources: NY Times, Huffington Post, AP, Google Maps