Starr International, which in the global meltdown in 2008 owned more AIG stock than any other entity, spells out in a $25 billion lawsuit against the Federal Reserve, how the Fed, acting in the name of the U.S. Government, illegally took control of AIG. That the Fed then gutted the company to the tune of billions of dollars and secretly siphoned off this money to other financial institutions, including foreign banks.
How many foreign banks? The list goes on and on, but here are a few: Societe Generale, Deutsche Bank, Banco Santander (Spain), and Royal Bank of Scotland.
And this doesn’t include the banksters gorged by the Fed here in the United States: J.P. Morgan, Merrill Lynch, HSBC, Morgan Stanley, and Bank of America.
Again, this is the short list!
…The unprecedented approach the Government took with AIG enabled the Government to use AIG as a vehicle to covertly funnel billions of dollars to other preferred financial institutions, including billions of dollars to foreign entities, in a now well-documented “backdoor bailout” of these financial institutions. (Starr International v. United States of America p.8)
But this is just half of the story. AIG shareholders in 2008 overwhelmingly rejected the Federal Reserve’s bid to take control of the company. But the Fed, acting in the name of the U.S. Government, spurned the law and Constitution.
Per the lawsuit:
Plaintiff’s claim is governed by the Fifth Amendment to the United States Constitution, which provides in pertinent part that no person shall “be deprived of life, liberty, or property, without due process of law.” (Starr International v. United States of America p.12)
The entity known as the Federal Reserve, in fact not part of the federal government, nor actually having any money reserves, like a robber baron, illegally commandeered AIG.
Though the lawsuit names the United States government as the plaintiff, Starr International is clear that the Federal Reserve was the body that gutted the company:
In connection with the transactions commencing in September 2008 described above, the Federal Reserve Bank of New York (“FRBNY”) assumed control of AIG as a controlling shareholder and controlling lender. (Starr International v. United States of America p.9)
The Fed, not satisfied with gutting the company and feeding billions to foreign banks, then proceeded to force the company, then 90% owned by the U.S. Government, to take so-called bailout loans at exorbitant rates:
This is the only time in history when a borrower from the Government, let alone a fully-secured borrower, was charged such an extortionate interest rate. (Starr International v. United States of America p.6)
This sounds like a Mafia shakedown! Who’s running the Federal Reserve—Al Capone?
Starr International, the plaintiff, joined by thousands of other former AIG stockholders, including former AIG Chairman, Maurice “Hank” Greenberg, subpoenaed the modern day Al Capone—none other than Fed Chairman Ben Bernanke. But Bernanke and the Federal Reserve, being above the law, refused. Starr International then filed a separate lawsuit to have a federal court compel Bernanke to testify. Eric Holder’s DOJ fought tooth and nail to prevent this, saying high government officials should not have to testify. Never mind that the Federal reserve is not part of the government! On August 12, federal judge Thomas Wheeler of the U.S. Court of Federal Claims ruled against the government, and mandated that Bernanke must testify.
Whether Bernanke will actually obey the law and testify remains to be seen. Perhaps Bernanke’s testimony will reveal the Fed’s illegal operations and will be the beginning of dismantling the Fed. The so-called “Federal Reserve” that has no reserves. That is not part of the Federal government, but enjoys federal protections. That has destroyed the economy, despite its charter mandating that it stabilize the economy. That has devalued our currency more than 90% since its inception in 1913, and if not stopped will eventually destroy this country.
Will this lawsuit be the beginning of the end for the Federal Reserve?
Time will tell.