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The Derivative Project Calls On House Tea Party Chair, Congresswoman Michelle Bachmann (R MN), to Launch House Oversight Investigation into the use of U.S. Taxpayer Funds for AIG Bailout

The Derivative Project is requesting this investigation be completed in conjunction with Congresswoman Bachmann's legislation, sponsored in January 2011, to repeal the Dodd-Frank financial reform bill. The full text of this letter will be made available at The Derivative Project's website, www.thederivativeproject.com and Blog, blog.thederivativeproject.com.

The Derivative Project requested of Congresswoman Bachmann in this memorandum, the following investigation:

    --  What legislation does The Tea Party Caucus and House Republicans propose
        to prevent taxpayer dollars from being used in the future to fund
        speculative positions by an end user, like AIG, or other financial
        institutions if Dodd-Frank is repealed?
    --  Are there substantive issues for House Oversight Committee investigation
        of unequal enforcement of U.S. financial contract law, where U.S.
        individuals are imprisoned for breach of a financial contract and U.S.
        corporations and its representatives are allowed a "stupidity" defense,
        when there is a preponderance of evidence the corporate financial
        contracts are fraudulent?
    --  The Tea Party Caucus and the House Republicans launch a complete House
        Oversight Investigation of the use of taxpayer dollars to fund
        collateral call payments to Goldman Sachs and other AIG counterparties
        during the most recent financial crisis, specifically why these
        financial contracts were not deemed fraudulent between AIG and Goldman
        Sachs and unwound in an orderly fashion.
    --  The Tea Party Caucus and the House Republicans request a ruling from
        Attorney General Eric Holder on why the financial contracts between AIG
        and Goldman Sachs were not deemed fraudulent and a constitutional misuse
        of taxpayer dollars by the U.S. Department of Treasury headed by then
        Treasury Secretary Henry Paulson, who had a material conflict of
        interest in proposing this use of $180 billion of U.S. taxpayer dollars
        since he had been a partner of Goldman Sachs.  Should the U.S. Treasury
        Secretary have recused himself from the recommendation that U.S.
        taxpayers fund collateral call payments from AIG to Goldman Sachs?
    --  The Tea Party Caucus and the House Republicans investigate if the $50
        billion in taxpayer funds funneled to several banks for AIG collateral
        payments on derivative financial contract positions should be refunded
        by the banks to the U.S. taxpayer.

The Derivative Project is a non-partisan, Minnesota - based taxpayer advocacy organization that seeks to ensure the long-term stability of the U.S. economy through equitable enforcement, for both individuals and corporations, of financial laws and regulations.

SOURCE The Derivative Project