Remember the outrage following the decision to cover 100 percent of the credit default swaps claims against AIG? Well, now it appears that payout may have been partly for the same types of Goldman Sachs securities over which Goldman is now being sued by the Securities and Exchange Commission.

Goldman Sachs says it didn’t bet against its customers in subprime mortgages. I guess it depends on what they mean by customer, and what they mean by market maker. It says it acted properly in its dealings with AIG. I guess it depends on what they mean by “properly”.

At present we have an inefficient federal legislative branch with members chosen on the basis of geography and population. What is needed is a bold refashioning of government — a constitutional amendment to replace our present gridlocked mess with a far more elegant and effective system based on the proven efficiencies and priorities of The Market.

Does Obama have what it takes to reinstate banking regulations?

This is a timeline based on the emails released by Federal Reserve Bank in response to a letter request from Rep. Darrell Issa. These emails show AIG trying to do plain vanilla disclosures, and initially involving the Fed to make sure they were disclosing enough. But the disclosures were inadequate and the Fed did not ensure AIG did make adequate disclosure. The emails released thus far are sufficiently damning and raise a host of suspicions;we have a right to know the full story. Further, because of the push back and forth, it is hardly wild speculation to think there is a smoking gun document out here.

The battle for transparency at the Federal Reserve just ratcheted up a notch. Edolphus Towns, the chair of the House Oversight and Government Reform Committee, just issued a subpoena to the New York Federal Reserve Bank, asking for documents related to AIG and their counter-party payments.

The House Banking Committee is going to have hearings on the NY Fed’s orders to AIG to make material misstatements on its 8-K filings to the SEC.

A lawyer for the New York Federal Reserve Bank is out with a statement claiming that Timothy Geithner played no role in the incident where lawyers instructed AIG to hide key elements of their payments to counter-parties.

Ed Towns, the chairman of the House Oversight and Government Reform Committee, just announced that he would hold hearings into the emails that show how the New York Federal Reserve delayed disclosure of AIG counter-party payments, hiding public information from federal regulators.

This is unbelievable. They conspired to lie to the taxpayers, to Congress and to investors. Do they really expect that nothing will come of it?