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