AIG, Market Meltdown, and Offshore Banking: Deception Incorporated

By: readerOfTeaLeaves

In all the discussions about TARP and AIG bonus payments and bailouts, have you ever heard a member of Congress ask Paulson or Geithner why we are bailing out financial corporations who have numerous offshore subsidiaries where they can hide money, transactions, and assets to avoid taxation -- and also to avoid reporting these assets on their balance sheets?
This needs much more discussion, and today David Shuster has some eye-popping statistics that explain why: http://www.msnbc.msn.com/id/21134540/vp/29902627#29902481
To get a larger sense of how serious this problem is, check out Conason's latest Salon column: http://www.salon.com/opinion/conason/2009/03/23/big_clawback/index.html
Why did Wachovia need 18 subsidiaries in Bermuda, three in the British Virgin Islands, and 16 in the Caymans? Why did Lehman Brothers need 31 subsidiaries in the Caymans? What do Bank of America's 59 subsidiaries in the Caymans actually do? Why does Citigroup need 427 separate subsidiaries in tax havens, including 12 in the Channel Islands, 21 in Jersey, 91 in Luxembourg, 19 in Bermuda and 90 in the Caymans?
What would you wager that some of those 'subsidiaries' moved money used to hedge bets on the US mortgage market? Or buy CDS's in London from AIG?
Do you recall this topic being raised at any of the Senate hearings on the economic meltdown? Or being raised in any bailout hearings?
Why are we bailing out Citigroup when we haven't even had a chance to examine what's in any of it's "... 427 separate subsidiaries in tax havens, including 12 in the Channel Islands, 21 in Jersey, 91 in Luxembourg, 19 in Bermuda and 90 in the Caymans? And furthermore, why has Congress failed to ask about these 'subsidiaries' in bailout hearings?
It's easy to get distracted with the outrageous 'bonuses' of AIGFP's employees.But what's the relationship between AIGFP and offshore bank accounts?Why are we being asked to bail out banks that are operating hundreds of offshore banking 'subsidiaries'?!!
Are these institutions, and CEOs, simply 'offshoring the money' so that their balance sheets look dire enough to come pick Uncle Sam's pocket?
Is DNI Blair serious in saying that the economic meltdown is a national security issue? And if it is, then why are we bailing out ANY financial institutions -- or 'insurance providers' -- who have offshore subsidiaries?!
And why isn't Congress asking about these things?
In providing the links and information here, I'm relying on Joe Conason for the research; I have not confirmed the numbers stated here independently, so am taking them 'on faith' from Shuster's program, and Conason's article.