Hello!! Thanks for forming this platform. I’m so glad I found it. I am a parent with student loan debt for my daughter from years ago, and I also have a student loan from a school I did not complete, and the school closed. Glad to be here for tips and guidance.
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Would 60 TRILLION help Americans? I bet it would. The bankers are THE problem …
Federal Reserve and US Treasury “secretly” gave away 60 TRILLION
The Federal Reserve “secretly” funneled 60 TRILLION through AIG and intentionally withheld this information from disclosure. By comparison, the entire 2019 Federal Budget was “just” 4 trillion, all student debt 2 trillion and all consumer debt 20 trillion.
Even though the Federal Reserve successfully withheld this information from disclosure in the AIG Schedule A SEC filing, the 60 TRILLION is substantiated in three congressional documents below.
AIG Bailout was $60 TRILLION
The massive AIG bailout (credit default swaps) is detailed in AIG Bailout Oversight Hearing, Panel 1, Oct. 8, 2008. Eric Dinalo participated in the AIG matter as NY State Insurance Superintendent and estimated the bailout at $60 trillion. Others; Maloney ($57 trillion), Yarmuth ($62 trillion), Turner (63), Braley (63), Welch (62), Sarbanes (62). The participants state that $60 trillion is equal to the value of the NYSE or production for the entire planet for one year. The recent annual federal budget was “just” 4 trillion … The nature of the “naked” credit default swaps is also set forth; essentially gambling, no collateral, no ownership of underlying asset, no return value, no cap relative to underlying asset.
Audit of Federal Reserve Substantiates Bailout Amounts
The magnitude of the AIG bailout is seemingly confirmed in the first-ever audit of the Federal Reserve. GAO, Opportunities Exist to Strengthen Policies and Processes for Managing Emergency Assistance, GAO-11-696. Table 8 (page 131), 2011. In assessing the GAO audit, the Levy Institute estimated the bailout cost at $29 trillion (Levy Institute, Working Paper No. 698, December 2011, $29,000,000,000,000: A Detailed Look at the Fed’s Bailout by Funding Facility and Recipient). Recipients: Citigroup: $2.5 trillion, Morgan Stanley: $2 trillion, Merrill Lynch: $2 trillion, Bank of America: $1.3 trillion, Bear Sterns: $800 B, Goldman Sachs: $800 B, Lehman $180 B. Barclays PLC (United Kingdom): $800 B Royal Bank of Scotland (UK): $500 B, JP Morgan Chase: $400 B, Deutsche Bank (Germany): $350 B, UBS (Switzerland): $300 B, Credit Suisse (Switzerland): $250 B, Lehman Brothers: $200 B, Bank of Scotland (United Kingdom): $200 B, BNP Paribas (France): $200 B. That might only be half (29 out of 60 trillion) …
Bailout Intentionally Withheld from Public Disclosure
The “extraordinary” withholding of disclosure is detailed in House of Representatives, Committee on Oversight and Government Reform, Public Disclosure as a Last Resort: How the Federal Reserve Fought to Cover Up the Details of the AIG Counterparties Bailout from the American People, Special Report, US House, January 25, 2010. When the SEC sought full disclosure of the amounts and recipients the FRBNY responded that this “requirement is giving us some pause, since we haven’t otherwise disclosed this information to Congress.” The “FRBNY clearly hoped to prevent Congress from fully understanding the payments to AIG’s counterparties” (pg 13).
The Committee concluded that the “fact that a quasi-government agency, unaccountable to the American people, likely wasted billions of taxpayer dollars and went to great lengths to prevent Congress and the American people from learning about these actions demonstrates the threat that the Federal Reserve poses to basic principles of American democracy.” (emphasis added)
Ultimately, the SEC granted a request by AIG to keep the bailout confidential as described in federal lawsuits brought by AIG shareholders against the US for unfair treatment in the bailout. Hilarious … taking into account the “secret” part of the bailout means that AIG received 98% of all bailout funds which doesn’t seem “unfair.” Despite this obvious defense, the US attorneys never sought or offered this information to any of the three courts (Federal Court of Claims, Federal Circuit and US Supreme Court).
Federal Reserve and US Treasury Claim Profit
Despite the evidence that $60,000 billion in losses were secretly funneled through AIG, the FRNY and US Treasury claimed a profit of about $20 billion.
Press Release (newyorkfed.org), August 23, 2012
“When taken together, the total net profit to taxpayers from the New York Fed’s assistance to AIG and AIG-related facilities was $17.7 billion.”
Treasury Sells Final Shares of AIG Common Stock, Positive Return on Overall AIG Commitment Reaches $22.7B 12/11/2012
“Treasury has realized a positive return of $5.0 billion and the Federal Reserve has realized a positive return of $17.7 billion.”
Treasury Sells Final Shares of AIG Common Stock, Positive Return on Overall AIG Commitment Reaches $22.7 Billion
The AIG bailout likely resulted in a loss of $59,980 billion rather than a profit of $20 billion.
“A nation can survive its fools and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all alleys, heard in the very halls of government itself. For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear.” Cisero
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Just want to say Hello. A former student of AI Charlotte here.
Hi there, I was wondering if these are recent loans or from more than 10 yrs ago? I know there was a case at one point that helped people from AI get their loans dismissed because they had lost accreditation. https://www.washingtonpost.com/education/2020/02/06/feds-give-former-art-institute-students-new-opportunity-loan-forgiveness/
Hello all,
Over $100,000 in debt to just get my foot in the door of the non-profit world. I never expected to be wealthy but at least able to survive. At my current salary I will never be able to pay off my loans, even if I work full time until I am 100 years old.
I’m hoping to find ways to contribute and help move this forward for all of us.
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You’ve listed me as a debt striker. I might have - 50 years ago. But we worked them off. Now I’m rich - I can pay my bills. I get social security and a little off a small investment and don’t go anyplace or do anything - I’ve become weak and sore -
I try hard to help build the struggle for communism - socialism -
Norma J F Harrison normaha@pacbell.net
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Wow! your quote from Cisero. Considering what just happened at the Capitol. Chilling. I plan to use it on every post I make pertaining to injustice anywhere. As for the rest of your post, those figures are so astronomical, I can’t even begin to comprehend them, yet Biden just want to settle on $10,000. I know enough about that figure to know its not enough.
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60 Trillion is beyond absurd … yet … the congressional members clearly identify the amount as “equal to all stocks on the NYSE” or global economic output for a year (in 2009).
Furthermore … is is also clear that the derivatives were “naked” with no collateral. Thus … the taxpayer received virtually nothing in return.
Now … democrats are up to bat again.
I am so glad this union was founded. I have education debt and credit card debt from years of low wages. I lived paycheck-to-paycheck so I have no retirement except the small monthly social security check I receive. My credit card payments take all of it and I don’t know what to do. I need help and wish to chat with others in a similar predicament. Should I keep making credit card payments or what?
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Thank you to The Debt Collective for existing!
I now see I have a voice in deciding what we all do together to fight back against endless creditors, collectors and the various government agencies that are extracting from us constantly, and I want to use it.
I went to AI Charleston and with penalties, collections, and interest I am ballpark estimating that my current illegitimate debt load is around $100,000
I have lived under the weight of this number since I got off the college track 10 years ago. Excited to be finally leveraging this number for the benefit of myself and the collective.
I am so grateful that this is really becoming a movement, a large one. This has to be the TSUNAMI finally coming in from Occupy’s almost forgotten earthquake. And I’m grateful to get to be part of it.
Thank you for this platform. Though I don’t qualify for any forgiveness, which is very unfortunate (due to my private loans) I hope to one day qualify since I was left in the dust of my school, even as an alumni. Will continue to keep watching this platform. - Graduate of AI of Minnesota, not making said promise of salary.
Retired, experienced Science/Math Educator, turned Techno-geek, and an ever-lastin’ Accomplice-In-Arms!
Active member of Los Angeles Tenants Union’s Mid-City Local, deeply involved with landlord/property research (LATU Research & LATU Mid-City Local Research).
Finally migrated over to “here” (Debt Collective)
SOLDARITY with ALL us fellow debtors!
Remember . . . WE take care of US!
Hi unfortunately I missed the training. Is there a way to get the information to prepare for the January 18th protest.
I’m still a PhD student and single mom of a 3 year old. I’m doing my graduate degrees overseas and accumulated about half a million in student debt for tuition, housing, and childcare. I’m afraid I won’t ever pay this off and I can’t imagine leaving my son with this debt. I’m hoping this collective will help me find some way out of this 
Just today (5.12.2022) got a note from Navient, saying i’m responsible for a debt i co-signed in 2002, and from which the principal borrower tapped out via bankruptcy in 2011 (and with whom i haven’t spoken since c. 2005). I was told at some point that my responsibility was discharged, but damn if i can find the paperwork. Any ideas would be appreciated, as would any commiseration anyone can muster up…
60 trillion is a lot. it would take all day to count that high. my debt is only 20000. i wish i had not spent that money when i knew they wanted me to pay it back,
Sparky Abraham from debt collective contacted me about three weeks ago
i asnwered questions that he sent to me, i have not heard back from him
I originally had $34000 Sallie Mae for my undergraduate degree. In 2009 my husband got in a major car accident left him in coma and $1,000,000 in medical debt as it was a car accident that was ruled someone else’s fault so medical insurance would not pay. We filed lawsuit against them and lost. We then had to file bankruptcy which included student loans. Navient had then had my loans I turned in paperwork they never cleared from debt and judge never said student loans not included. 2009 we took in two boys from state foster system. I took on graduate loan as I thought my undergraduate were taken care of then they increased interest now owe $123000 their debt calculators show I need to pay $1200 month which we can’t afford. My husband works at railroad and they go by gross and take money for Medicare and retirement since it doesn’t pay into social security . He is unijured spouse. I work for State of Missouri Family Support Division. I don’t want to default. If they would of told me in school $1200 a month I would of never took out loans. We need better financial education for young students and need to not push student loans on low income first time college students who don’t understand any of this or their parents. This is not something I would of done if I understood what I understand now. I need any and all suggestions or ideas to make money to pay as we don’t have it with inflation we were all ready short. I have messaged president 3 times. IDR is not helping.