See Chellie Hedge.

According to a recent online article, Harry Markopolos -- the man who blew the whistle on Bernie Madoff -- said about hedge funds and credit swaps  "To put it (credit default swaps) in simple terms,” he said, “it is like buying fire insurance policies from five different insurance companies on your neighbor's house and then burning down the house.”    So what do hedge funds, AIG and credit swaps have to do with Maine?   Well, one hedge fund that participated in AIG credit swaps has been financing our 1^st District Congresswoman – Chellie Pingree.

According to Business Insider web site “Paloma Partners were securities lending counterparties of AIG's.  They lent securities to AIG, which it then lent out to others to be shorted.  This business was famously catastrophic for AIG, causing a firestorm of losses for the company.  That would ordinarily be a disaster for counterparties, who would have been left empty-handed.  Market processes are excellent factors for punishing reckless lenders to financially irresponsible companies.  But that process has been thwarted by the bailout.”  According to that same article, “Paloma Securities received $200 million of taxpayer dollars each between September 18 and December 31, according to the list of AIG counterparties released.”

Donald Sussman’s Paloma Partners  (of Congresswoman Pingree fame) was a counterparty to the failed portion of AIG!!!!   In other words, Paloma Partners participated in the controversial credit swap derivatives with AIG.   They lost when AIG collapsed.  However, they were bailed out.  Though being filthy rich, Paloma received $200 million of tax payer, bail out money!   Many employees then turned around  and donated in excess of $43,000 to Chellie Pingree, according to filings.   Some observations and questions come to mind:

·         That hedge fund has been the largest contributor to Ms. Pingree over the last several years: Cayman Island and Greenwich, Ct. located, Paloma Partners Hedge Fund. 

·         According to her FEC reports, in just the last year Ms. Pingree accepted $100,000 in contributions from Paloma Partners.

·         How willing do you think she will be in investigating the involvement of Paloma Partners in the destruction of AIG by Paloma Partners?

·         Why hasn’t the self-proclaimed queen of transparency and accountability, former President of Common Cause, CEO detractor, introduced any legislation that would regulate these evil awful hedge funds? Why hasnt she refused their contributions?

·         Paloma Partners received $200 million from the ‘financial weapons of mass destruction’ that destroyed AIG: Credit swap derivatives. Is she liable to be negatively influenced by the donor of that cash? 

·         Is she likely to be inclined to investigate Paloma Partners’ and hedge funds’ involvement in the takedown of AIG? 

·         Would she be less likely to ethically distinguish the consequences of the donor’s requests? 

·         Did Chellie Pingree receive AIG Bailout cash?  

·         Is that a direct and complete conflict of interest in her representation of the people of Maine and the citizens of the United States? 

I think it is time that someone, preferably the Maine-based media, takes a very close look at Paloma Partners, their relationship to Congresswoman Pingree, and their involvement in AIG’s collapse.  With Paloma’s involvement in the AIG mess and their tireless financial support of Congresswoman Pingree, how can Pingree continue to take contributions from this firm and its employees?  We need to ask the Congresswoman some tough questions.