Forget the bonuses, AIG can't repay its loans, GAO says

[kpete]

Source: McClatchy

* Posted on Wednesday, March 18, 2009

Forget the bonuses, AIG can't repay its loans, GAO says

By Kevin G. Hall | McClatchy Newspapers

WASHINGTON — Lost in all the shouting over the $165 million in bonuses paid to executives of disgraced insurer American International Group was this sober message delivered to Congress on Wednesday by a government watchdog: AIG's ability repay its $170 billion in loans from taxpayers has eroded significantly.

Testifying before Congress, Orice Williams, the director of the Government Accountability Office's financial markets division, said that AIG has had only limited success in restructuring itself, despite more than $170 billion in federal aid in four separate bailouts since last September.

"AIG's ability to repay its obligations to the federal government also has been impaired by its deteriorating operations, its inability to sell its assets and by further declines in its assets," said a GAO report that was released with Williams' testimony.

When the Federal Reserve rescued AIG in September with an original $85 billion loan that gave the government a nearly 80 percent equity stake in the company, the intention was to prevent rating agencies from further downgrading AIG.

Read more: http://www.mcclatchydc.com/227/story/64311.html

[LakeSamish706]

1. As Mr. Liddy stated in his testimony, the markets will determine on whether or not....

AIG will be able to pay back it's loans...

[MichiganVote]

2. Breaking Up Is Hard To Do......coming soon to an economy near you.

[KansDem]

3. So, when do the calls to AIG CEOs begin?

You know--

Hi, is this Edward Li-, Lib-, er...Liddy? Am I speaking to Mr. Liddy? Oh, good! Well this is Tiffany with Cooperating Collections. How are you doing this evening? Fine, now Mr. Libby, er...Liddy, I wanted to remind you that this is call is to collect a debt and any information acquired from it will be used to that effect. Also, this call may be monitored and recorded for training purposes. Okay, Mr. Lib...er, Liddy? Wonderful! Now, I notice you missed a payment of $12,345,678.90 that was due last week. Can we arrange a check-by-phone this evening. Oh? Are you sure? If we can postdate this transaction, I'll note it in your account here on the computer screen and that'll stop the calls. Really? Well, I'll make a note of that as well. Now, Mr. Lib...er, Liddy, can you verify your address and home phone beginning with your area code, please?...

[onethatcares]

4. face it folks, from one worker to the next

these bastards arent' gonna pay anything back, they aren't gonna answer any questions, they don't give a flying vuck about you, me, your mom, your kids, the dog or the ferret, they are going to take OUR MONEY AND LAUGH ALL THE WAY TO THE RIVIERA. Meanwhile, we'll be eating beans if we're lucky and hoping we have a job or a house, or a car or a future.

Never in my 58 years of living did I expect this. And our so called representatives will be right there eating bon bons and drinking vino with them.

[dixiegrrrrl]

5. 2010 elections coming up, real soon. Take names now.

[wackywaggin]

6. After watching C-span AIG testimony today.

1.) AIG has borrowed 78 billion to date and has another 30 billion available to it at the federal reserve which it has not used not the 170 billion reported.
2.) Liddy is being paid 1.00 to run the company, no bonuses or other incentives.
3.) Liddy is protecting individuals who recieved bonuses for an unknown reason. Someone the other day suggested these bonuses were hush -up money, possibly.
4.) The derivitives business at AIG has been "wound down" from 2.7 trillion to 1.6 trillion dollars of exposure and the bonuses are for the workers that helped wind these derivitives down to date.
5.) The remaining 1.6 trillion dollars in derivitives are the safer derivitives that remain not the more risky ones.
6.) most if not all of the most risky contract-derivitive swaps have been sold already.

:smoke:

[LeftHandPath]

7. As long as Goldman Sach is protected...

everyone else can take a dirt nap.

This is all about Goldman. Everything in this crisis leads back to the Goldman Death Star.