NEW WORLD ORDER: BAILOUTS HELPED FOREIGN FIRMS...
WHEN MEMBERS OF THE US CONGRESS BECOME CORRUPTS
Watchdog panel cites global impact of US bailout
Aug 12, 6:20 AM (ET)
By MARCY GORDON
WASHINGTON (AP) - The $700 billion U.S. bailout program launched in response to
the global economic meltdown had a far greater impact overseas than other
countries' financial rescue plans did on the U.S., according to a new report
from a congressional watchdog.
Billions of dollars in U.S. rescue funds wound up in big banks in France,
Germany and other nations. That was probably inevitable because of the
structure of the Treasury Department's program, the Congressional Oversight
Panel says in a new report issued Thursday.
The U.S. program aimed to stabilize the financial system by injecting money
into as many banks as possible, including those with substantial operations
overseas. Most other countries, by contrast, focused their efforts more
narrowly on banks in their nations that usually lacked major U.S. operations.
But the report says that if the U.S. had gotten more data on which foreign
banks would benefit the most, the government might have been able to ask those
countries to share some of the cost.
"There were no data about where this money was going," panel chair Elizabeth
Warren said in a conference call with reporters on Wednesday. "The American
people have a right to know where the money went."
An example: Major French and German banks were among the biggest beneficiaries
of the U.S. rescue of American International Group Inc., yet the American
government shouldered the entire $70 billion risk of pumping capital into the
crippled insurance titan. The report compares that with the $35 billion that
France spent on its overall financial rescue program and the $133 billion that
Germany spent.
Much of the $182 billion in federal aid to AIG - the biggest of the government
rescues - went to meet the company's obligations to its Wall Street trading
partners on credit default swaps, a form of insurance against default of
securities. The partners included French banks Societe Generale, which received
$11.9 billion in AIG money, and BNP Paribas, which got $4.9 billion, and
Germany's Deutsche Bank, $11.8 billion.
Of the 87 banks and financial entities that indirectly benefited from the U.S.
aid to AIG, 43 are foreign, according to the report. In addition to France and
Germany, they include banks based in Canada, Britain and Switzerland.
In addition to AIG, many of the U.S. banks and automakers that received
billions in bailout aid derive a large proportion of their revenue from
operations outside the U.S., the report noted.
The watchdog panel was created by Congress to oversee the Treasury Department
rescue program that came in at the peak of the financial crisis in the fall of
2008. It has said it's unclear whether U.S. taxpayers will ever fully recoup
the cost of the AIG bailout. The Congressional Budget Office estimates that
taxpayers will lose $36 billion.
Although the law creating the U.S. rescue program called for Treasury to
coordinate its actions with similar efforts by foreign governments, "the global
response to the financial crisis unfolded on an ... informal,
country-by-country basis," the new report says. "Each individual government
made its own decisions based on its evaluation of what was best for its own
banking sector and for its own domestic economy."
The U.S. program wound up injecting capital into around 700 banks, while all
other governments combined aided fewer than 50, according to the oversight
panel.
At the same time, the report suggests that the Treasury program, known as the
Troubled Asset Relief Program, or TARP, may have played a constructive role.
"It appears that the existence of the TARP might have served to enhance the
negotiating position of the U.S. government (at least in a limited way), as it
demonstrated the willingness of U.S. officials to be aggressive and forceful in
committing a significant amount of resources to confront a deepening crisis,"
the report says.
Treasury Department spokesman Mark Paustenbach said the report "shows that
Treasury worked effectively with its overseas partners in a number of ways to
address the global financial crisis."
The report says the financial crisis revealed the need for an international
plan "to handle the collapse of major, globally significant financial
institutions."
THE 111TH US CONGRESS IN TROUBLE:
CORRUPTION ! INCOMPETENCE, ARROGANCE, IGNORANCE AMONG MEMBERS SUCH AS
SENATORS CHRIS DODD, CARL LEVIN, CHARLES SHUMER , BERNIE FRANK ETC.... RESULTED
IN THIS ?
FROM AMERICA WITH LOVE.
VIETNAM INVASION & OCCUPATION OF CAMBODIA continues 1979-2009.
US PRESIDENT RONALD REAGAN INSISTS ON CAMBODIA INDPENDENCE. 1988
On April 28, 1984, Deng Xiaoping, Chairman of the Advisory Committee of the
Central Committee of the Communist Party of China, meets U.S. President Ronald
Reagan in the Great Hall of the People in Beijing. (Photo: fmprc.gov.cn)
Photo Gallery>>>
President Reagan's address to the 43d Session of the United Nations General
Assembly in New York, New York . September 26, 1988.
"Mr. Secretary-General, there are new hopes for Cambodia, a nation whose
freedom and independence we seek just as avidly as we sought the freedom and
independence of Afghanistan. We urge the rapid removal of all Vietnamese troops
...."
"Prime Minister Pham Van Dong called on me and, in the presence of Premier Chou
En-lai, swore in the name of the Democratic Republic of Vietnam that the latter
would always respect the land frontiers as well as all islands belonging to the
"Kingdom of Cambodia" March 1970 by Sihanouk . Wilfred Burchett book "The China
Cambodia Vietnam triangle " P-176-177
UN Passes Strong Resolution on Cambodia Human Rights Abuses
Feb. 27, 1982 : UN Commission on Human Rights meeting in Geneva adopted a
resolution condemning Vietnam’s occupation of Cambodia as a violation of
Cambodian human rights. The vote was 28 in favor, 8 against, and 5 abstentions.
5. Oct. 21, 1986 The UN General Assembly adopted a resolution A/RES/41/6, by
vote of 116-21 with 13 abstentions, calling for a withdrawal of Vietnamese
forces from Cambodia.
As of today,Cambodia is still occupied by the Vietnamese troops despite the
call from the US president to Vietnam to cease her occupation of Cambodia since
1988.
Cambodia needs Independence from Vietnam and the Vietnamese invaders.
Vietnam must cease her occupation of Cambodia at once.
BURY
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