Another $30,000,000,000 dumped down the AIG rathole

[n2doc]

AIG To Get New $30 Billion Bailout

IEVA M. AUGSTUMS | March 1, 2009 04:37 PM EST |
CHARLOTTE, N.C. — American International Group Inc. will receive additional federal assistance of up to $30 billion as part of a revamped government bailout, according to media reports Sunday, citing unnamed sources.

The new funding, the fourth government rescue of AIG since September, is intended to support the New York-based insurer as it is expected to announce $60 billion in quarterly losses early Monday.

Once one of the world's largest insurers, AIG has already received $150 billion in loans from the government. In return the government has taken an 80 percent stake in the insurer.

Under the new deal, the U.S. Treasury and the Federal Reserve would provide about $30 billion in fresh capital to the insurer, lower the interest rate on a $60 billion loan and ease the terms of a $40 billion preferred share investment.

more:
http://www.huffingtonpost.com/2009/03/01/aig-to-get-new-30-billion_n_170898.html

[liberalmuse]

1. We gave them $150 billion...

and they're reporting a $60 billion loss, meaning they lost $210 billion! Jesus Christ. Fuck these bankers.

[leftstreet]

2. I wish you wouldn't type out all those zeros

:cry:

[roamer65]

3. Get ready. I read somewhere that it could be another $200B before its stabilized.

[FreakinDJ]

4. You mean given to the Suadis

A Suadi Royal Prince owns 85% stake in AIG

[Initech]

5. I like money.

[GoesTo11]

6. The company could be bought for $1 billion.

Why not nationalize it now? Just tell them to take a hike. They obviously aren't a real business, why pretend with stock, etc.

It's worth $1B and they're spending another $30B. Imagine this was your brother in law. His business had been worth 140k, then his bad debts were exposed. You had lent him $200k. He lost it all and his business is now worth $1k. So he's asking you to reduce interest, relax terms on another $100k and to give him another $30k.

This is not the right solution. It's just not. I may not be a top economist, but this defies common sense. I would place more credibility in expert economist judgement and less in common sense if the former hadn't brought us to this point.

[AntiFascist]

12. Worse yet, isn't it CIA? Who knows where the funds are going. n/t

[tabbycat31]

7. bring this CEO before Congress

and make him explain the vacations on taxpayer dollars before he gets another dime.

[Karenina]

17. Not a chance. It's a BFEE national security issue.

A cursory look down the AIG rabbit hole will reveal the same LTCM, BCCI nastiness. How 'bout that security breach re: Obama's helicopters, eh?

[stillcool]

18. He was appointed by the Government

to run AIG in September.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9tDCRpMNHkI&refer=home

[Initech]

19. And then we the tax payers get to collectively kick his ass. Repeatedly.

[acmavm]

8. Wait wait wait wait. Where's that frigging thread about AIG suing the

US government for tax money back in the 70s (I think it was the 70s).

It was within the last few days.

edit: Here it is (the original article, not the thread)

AIG Sues U.S. Government to Recover $306 Million in 1997 Taxes
2009-02-27 21:22:57.859 GMT

By David Glovin

Feb. 27 (Bloomberg) — American International Group Inc., the insurer in talks to restructure its federally funded
$150 billion bailout, sued the U.S. government to recover $306 million in taxes.

In a 52-page complaint filed today in Manhattan federal court, AIG said the U.S. government “erroneously and
illegally” assessed taxes, penalties and interest on the company for several complex transactions in 1997.



http://tortiball.com/wp/2009/02/aig-sues-us-government-wtf/

[leftstreet]

13. wtf?

Looks like the article was scrubbed from Bloomberg

Strange days.

[dkf]

9. I want to know exactly where the money is going and who exactly we are bailing out here.

If AIG failed, who are these entities who would have been out all that money?

My understanding is most of the business under AIG are independently secure, but the problem is the derivatives unit.

[notesdev]

10. Investment bankers

AIG's significance is its position as a counterparty to all these credit default swaps... all the bankers were depending on them to be rock solid insurance, never imagining that their demand for riskless profit could overwhelm a company of that size. And then of course are the fools at AIG who actually insured these deals. We're talking Paulson and Geithner's buddies.

[dkf]

14. I want them to name names.

Investment Bankers who put everything on credit default swaps from this firm weren't doing their due diligence either.

They bought what should have been worthless protection, but is now being backed by the American taxpayer.

We should have those characters by the hairs too.

As far as I'm concerned this is pure corporate welfare.

[Elidor]

11. For this kind of money, they should be sending people to clean my house

And everyone else's house, too. In fact, that's not a bad idea. They could start from the bottom in a simple field with high demand and slowly work their way back up.

[onethatcares]

15. for this kind of money it should be renamed

"the company formerly known as aig, now the Property of the Citizens of the United States of America".

An 80% interest in that place should give us all naming rights, and the right to smack the ass of every corporate asshole that got them to this point.

[Sancho]

16. My retirement is in AIG Valic...so as long as I get mine back I'm happy!

When I started putting up retirement, Valic was "independent" and rated AAA and recommended by everyone. AIG bought Valic somehow (I don't keep up with those things) and all of a sudden the safe, no-risk retirement is under a company of crooks from Texas. I'm as PO'd as I can be...


:wtf: :wow: :grr: :scared: