"The same people that created them....." Somebody's gettin it ...."comin and goin".... Guess who that is..... Just one more reason for a New Worldwide Direct Access Securities Exchange.... Time to clean house.... From Mish... ......................................................... Fed Overwhelmed, Calls Emergency Consultants To Untangle AIG AIG is just one piece of the derivatives mess. Nonetheless AIG alone is so complex no one can figure it out. In response, the Fed Calls Emergency Consultants To Untangle AIG. âI donât think the Fed has seen anything like this,â former New York Fed general counsel and AIG executive Ernest Patrikis said in an interview. âAIG just got so complex in terms of private corporate matters that you just need that outside expertise.â Patrikis is now with the law firm of White & Case in New York. In addition to hiring consultants, the Fed and the Treasury have retained Wall Street firms to help manage more than $2 trillion in bailout and emergency-loan programs. Pacific Investment Management Co. runs a $259 billion program to backstop the commercial-paper market. BlackRock Inc., Goldman Sachs Asset Management, Pimco and Wellington Management Co. are managing the Fedâs purchases of up to $500 billion of mortgage-backed securities. JPMorgan Chase & Co. oversees a separate program under which the Fed may lend up to $540 billion to support money market mutual funds. Last month, the House passed conditions for releasing the remaining $350 billion of financial-rescue funds, including a requirement that the Fed give details of the contracts and selection process for the mortgage-backed securities purchase programâs managers. The Senate isnât planning to take up the legislation. BlackRock is also managing and selling assets acquired in the Fedâs $29 billion rescue of Bear Stearns Cos., as well as securities called collateralized debt obligations the central bank purchased in the bailout of AIG, the largest U.S. insurer by assets. Staff Overwhelmed Such contracts show how the Fedâs in-house staff has been overwhelmed by new responsibilities that the central bank has taken on in handling the crisis. âOnce the government starts getting into the business of restructuring companies, there are competency deficits,â said Phillip Phan, professor of management at the Johns Hopkins Carey Business School in Baltimore. âItâs inevitable theyâll go back to Wall Street for advice.â Still, he said, âthe man in the street would say, âWeâre paying to fix somebody elseâs mistake by paying the very people who are part of the system that produced the mistake.ââ