AIG bailout secrecy disputed

AIG bailout secrecy disputed

There are 3 comments on the TwinCities.com story from Jan 7, 2010, titled AIG bailout secrecy disputed. In it, TwinCities.com reports that:

Republicans in both houses called Thursday for hearings to investigate revelations that the Federal Reserve Bank of New York, led at the time by Treasury Secretary Timothy Geithner, pushed for greater secrecy on controversial bailout deals in 2008.

Join the discussion below, or Read more at TwinCities.com.

Porkulus

Minneapolis, MN

#1 Jan 8, 2010


"AIG’s first rescue was an $85 billion credit line from the New York Fed in September 2008. The bailout was expanded three times and is valued at $182.3 billion. That includes a $60 billion Fed credit line, an investment of as much as $69.8 billion from the Treasury and up to $52.5 billion for Maiden Lane facilities to buy mortgage-linked assets owned or backed by the company."



AIG was the designated patsy. They were demonized. Their bonuses were cursed. They had ACORN sent after their executives to stage protests.

Meantime, all they were really doing was to pass the money THROUGH AIG to Goldman Sachs, J. P. Morgan, and a couple of other banks who were their political donors. Goldman Sachs made huge profits, not only on all the money passed through, but also on shorting AIG.

What they presumably told AIG was,“You play the patsy, or you’re going bankrupt and will spend the rest of your lives in jail.” So AIG rolled over .

This wasn’t just Geithner. Obama was in it well before he became President. He was the second biggest recipient of donations from Goldman Sachs, after Doodyhead Dodd.
Turbotax Timmy

Minneapolis, MN

#2 Jan 8, 2010
AIG Uses Accounting Gimmick To Reduce Money It Owes Taxpayers By $25 Billion

http://www.businessinsider.com/aig-reduces-go...

American International Group says it has slashed the amount of money it owes the government by $25 billion after moving two subsidiaries into special holding units ahead of their planned spinoffs or sale. How could this be? Didn't a Sanford Bernstein analyst just discover that AIG had a new $11 billion hole in its balance sheet?

As it turns out AIG has reduced its debt to taxpayers without paying back a dime of the money it borrowed. Instead, it is just engaging in accounting chicannery to transfer the obligations to a pair of companies it is spinning off.

The government is receiving $25 billion in preferred shares in the two life insurance companies, American International Assurance Co. and American Life Insurance Co. AIG will continue to hold the common shares of AIA and Alico until it decides whether to sell the companies privately or IPO them. Then, at last, some of the taxpayer money may be repaid.

Here is the official press release from AIG.

more at businessinsider.com ...

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Hopefully some of this will serve as evidence that bailouts dont work and that they dont net taxpayers some kind of a return on their involuntary investment.

(Keep in mind that the Feds brought in a new CEO, made promises to him, and has now refused to meet those promises.)

DFL NeedsDiet

Saint Paul, MN

#3 Jan 8, 2010
Bailout a total scam!

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