AIG Pulls Fast One -- "Cash Awards" Going To Managers

Quote from DrPepper:

We did address it with our government before they gave the money to AIG. There was a huge public outcry and protests against the $700 million bail-out. Congress pretended to listen by not passing it the first time. Then, when the market tanked, congress added quite a bit more pork to the bill to persuade a few more congressman to vote for it. In the future, all of these bailouts will be looked upon as the biggest financial mistake in history.
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We taxpayers had no opportunity to raise hell or protest the AIG bailout. It was not part of the 700B bailout sham. It was originally a 70B loan at 12% or so. Renegotiated to 150B at approx 6% with minimal transparency. We found out only after the deal was done. Now they are claiming its part of national security... WTF

I believe the reason this deal was done fast and without any act of congress was the fact that AIG insures Government and municiple bonds and underwrites risk for a majority of the tanking banks. The original purpose was to provide a 70B bridge loan so they could liquidate their 1 trillion + in assets and windup their business affairs.

Feds defrauded the citizens by stating the deal will make money for all taxpayers. Making money for citizens is not the function nor purpose of our federal government. The government knows the bankruptcy code is a sham only allowing lawyers to rape all the assets. The feds have unilaterally decided who to save and who to let die.

The same Jagaloons who have bankrupted their own company are still in charge with fed guaranteed money. Hmm.. lets let the fox guard the henhouse.

Imagine if white collar crime had the same three strikes your out laws... Be alot of pardon requests on Bush's docket.
 
Here we go again... The govt has no stop loss and is averaging down AIG.

1st: $70B 12%
2nd $150B 6%
3rd: ????

Probably $300B @ 3%

2.69B shares outstanding at $0.47 = $1.43B in market cap.

already leveraged 100x1

Why not cut our losses... Offer $1 a share to buyout the company for $2.69B and nationalize it?

Just Off Reuters:

AIG in talks with U.S. government for more funds: source
Monday February 23, 3:56 pm ET

NEW YORK (Reuters) - American International Group Inc (NYSE:AIG - News) and the U.S. government are engaged in talks, as the troubled U.S. insurer faces massive losses due to writedowns on commercial real estate and other assets, according to a source and CNBC report on Monday.

AIG, once the world's largest insurer, is expected to post a loss of nearly $60 billion on Monday, when it reports its results, CNBC reported citing unnamed sources close to the company.

The talks with the government include the possibility of additional funds for the insurer and trading debt for equity, a source familiar with the matter told Reuters.

The situation is fluid, and other options are also being discussed, the source said, adding that it was unclear where the talks would ultimately lead.

AIG's board is meeting on Sunday to work out an agreement with the government, CNBC said.

In case they do not reach a deal, AIG's lawyers at Weil, Gotshal & Manges LLP were preparing for the possibility of bankruptcy, CNBC said.

AIG declined to comment.

AIG shares fell 7 cents, or 13 percent, to 47 cents on the New York Stock Exchange shortly before the close.

AIG, once the world's largest insurer, has already gone to the government twice for help. The government rescued the company in September after bad mortgage bets left it on the verge of collapse. The bailout swelled to about $150 billion in November when the Federal Reserve and U.S. Treasury stepped in with more cash to buy mortgage assets that had left AIG deeply in the red, and to ease the terms of its loan repayment.

(Reporting by Paritosh Bansal; editing by John Wallace, Richard Chang)
 
Landis, makloda and S2000 have strong opinions on AIG.

Here's mine: Insurers never should have been allowed to do anything remotely as foolish as write CDSs.

The U.S. taxpayer has now given AIG nearly $180 billion dollars, will be giving it more, and AIG is trading around 50 cents a share. It's a literal black hole.

And this crisis is built on a foundation of corruption.

There should be criminal trials of AIG personnel en masse, IMO.

Symbolically, there should be criminal investigations into the throwing of parties, payment of bonuses, etc., at AIG.

Here's the kicker: The rest of the world is tarting to blame the United States, almost singularly, for their financial problems, as they see their pension funds and other such quasi-public funds fail.
 
this is insane, how much of AIG's losses due to CDO's have been paid ? Was the intitial two bails outs just a drop in the bucket ? If so, how much are they really in the hole for ?

where is the accountability for their mistakes? it's the govt, the taxpayers and your children who will be paying for all this corruption.

shouldn't there be some jail time, beheadings like the chinese do it ?
 
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