Subsidized Shariah; Treasury Tested on 'Islamic Finance 101'

Article excerpt


Does Timothy F. Geithner support jihad? Of course not. But the Treasury secretary on Tuesday lost a major round of a court case in which a taxpayer argues that government ownership of the insurance giant American International Group Inc. amounts to an unconstitutional government establishment of Islam. The controversy involves Shariah-compliant financing, part of which requires charitable contributions to those who struggle for Allah jihad ).

The Thomas More Law Center, representing the plaintiffs in this case, has claimed there are a number of links between charities that receive funds as a result of Shariah-compliant financing and terrorist organizations that are hostile to the United States. This is a long-standing practice whereby some front groups exploit charitable contributions to fund Islamic extremists.

Regardless of jihad, there is no dispute that, as U.S. District Judge Lawrence P. Zatkoff wrote on May 26, AIG is the market leader in Sharia-compliant financing, which features financial products that comply with the dictates of Islamic law. It's undisputed that the government, as a result of last fall's bailout, now owns 77.9 percent of the aggregate voting power of the common stock of AIG. …