Secret banking cabals that control the global economy is a key topic of conspiracy theorists. After the congressional hearing into the bailout of AIG, you have to wonder if it's true.
The hearing described a secretive group deploying billions of dollars to favored banks.
The Federal Reserve Bank of New York, most influential in the federal-reserve system -- it's decision to buy out, for $30 billion, contracts AIG sold on toxic debt to Goldman Sachs, Merrill Lynch & Co., and others, was a back-door bailout for the banks, which received 100 cents on the dollar for the contracts.
#### Treasury Secretary Tim Geithner was head of New York Fed at time of the AIG bailout.
The House Committee on Oversight and Government Reform focused on the New York Fed’s cover-up of buyout details and who benefited.
#### The New York Fed is a QUASI-governmental institution that isn’t subject to citizen intrusions such as information requests.
#### Representative Marcy Kaptur said : “People think the president of the New York Fed works for the U.S. government. But in fact he works for the PRIVATE banks that elected him.”
The New York Fed, a QUASI-governmental body, was able to push the Securities and Exchange Commission around, an executive-branch agency, in the AIG bailout deserves a congressional hearing itself.