Seen at Jesse's Cafe Americain, from the New York Post:
August 12, 2009
HARRY Markopolos -- the whistleblower on Bernie Madoff who proved to be much smarter than the SEC -- says there are evildoers out there who will make the Ponzi scum "look like small-time." Markopolos gave a speech to 400 of the faithful at the Greek Orthodox Church in Southampton and predicted major scandals will soon be revealed about the unregulated, $600 trillion, credit-default swap market. "To put it in simple terms, it is like buying fire insurance policies from five different insurance companies on your neighbor's house and then burning down the house," he said. After his lecture, Hampton Sheet publisher Joan Jedell reports Markopolos was feted at a dinner at Nello Summertimes hosted by John Catsimatidis and his wife, Margo, who were joined by Al D'Amato and Greek shipping magnates Nicholas Zoullas and Spiros Milonas.
This would likely be AIG/Goldman Sachs etc. It could also relate to the allegations that JPMorgan Chase and others deliberately brought Lehman down.
This blog has repeatedly pointed out that the payments--in full-- from the U. S. Government to those who purchased credit default swaps (CDS) from AIG were improper, and that the final payment, made during the early months of the Obama administration, was hidden by the hyped "controversy" over the vastly smaller bonuses to AIG personnel. Perhaps quixotically and perhaps incorrectly, EBR has also suggested that as with Watergate, the scandals attendant to the Great Financial Crisis will play out more publicly. Certainly what AIG and its counterparties did, dealing with CDS with no reserves and then having the Government make good on this "insurance" was very wrong. Will it be buried?
The Markopolos news item might signify movement in this story. I would neither hold my breath for another shoe to drop nor rule it out.
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