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THE MUSINGS OF A TRADITIONAL SOUTHERN DEMOCRAT

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Sid in his law office where he sits when meeting with clients. Observant eyes will notice the statuette of one of Sid's favorite Democrats.

Sunday, March 15, 2009

Enough, enough. Just when you think it couldn't get any worse, it does. -- AIG Faces Growing Wrath Over Payouts

I could add so much more to this story, such as about Goldman Sach's CEO (Goldman being a big recipient of the funds discussed below) participating in the bailout decision, and maybe will in due time. But I am in the middle of something else at the moment.

From The Wall Street Journal:

Troubled insurer American International Group Inc., now 80% owned by U.S. taxpayers, spent the weekend deflecting mounting criticism of how government funds have been funneled to various banks and used to pay employee bonuses at the business unit that almost sank the company.

After calls for more transparency, AIG disclosed Sunday that roughly two-thirds of the $173.3 billion in federal aid it received has been paid out to trading partners such as banks and municipalities in the U.S. and abroad.

The disclosures came as AIG was lambasted for about $450 million in bonus payments planned for employees at a business unit that lost $40.5 billion last year. The unit's woes pushed the company to near-collapse, forcing the government bailout.

The list of AIG's trading partners reads like a who's who of global finance. It includes big U.S. banks such as Goldman Sachs, which received nearly $13 billion. Large European firms, such as Société Générale and Deutsche Bank also appear, each having received nearly $12 billion.

There are political risks to the disclosures, notably the fact that taxpayer dollars are essentially passing through AIG to make whole private businesses and foreign banks.

2 Comments:

Blogger Pro said...

AIG = Allowing Irreversible Greed.
AIG = All in Greed.
AIG = Arn't I Greedy.
AIG = A$#holes, in general.

This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? They cry yet get paid millions on the "average joes" taxes. Furthermore, I fear this is just the tip of the iceberg. Look what Enterprise rent-a-car did to get bailout funds:

http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/

Not to make excuses for these people, but the bailouts are making crooks out of everyone that touches the money.

3:24 AM  
Blogger Russ Frier said...

Guys, I think if you look at the miniscule % that the AIG hooplah represents of the various bailouts in play juxtaposed with the level of media attention, it screams false flag...

7:16 PM  

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