AIG-American International Group, Inc-International insurance and financial services organization, with operations in approximately 130 countries and jurisdictions.
What can I say that isn’t being said all around this country. I was watching Bernanke on 60 minutes last night and listening to his excuses as to why we had to give AIG four bailouts totaling $160 billion.
In Bernanke’s words:
“Let me just first say that of all the events and all of the things we’ve done in the last 18 months, the single one that makes me the angriest, that gives me the most angst, is the intervention with AIG. Here was a company that made all kinds of unconscionable bets. Then, when those bets went wrong, we had a situation where the failure of that company would have brought down the financial system,” Bernanke said.
“It makes me angry. I slammed the phone more than a few times on discussing AIG. I understand why the American people are angry. It’s absolutely unfair that taxpayer dollars are going to prop up a company that made these terrible bets, that was operating out of the sight of regulators, but which we have no choice but the stabilize, or else risk enormous impact, not just in the financial system, but on the whole U.S. economy,” Bernanke explained.
During a commercial break they had a news update. The announcer told us that AIG was giving bonuses to its executives totaling $165 million in bonus. I couldn’t believe what I was hearing. They were using the bailout money for this. These are the very morons that backed risky loans and investments. Here was Bernanke defending the reasons he gave them the money and now I hear that bonuses are being given to AIG’s executives! Anything that Bernanke had to say hearing that, was meaningless. To me, he was making a fool of himself just by giving this interview to 60 Minutes.
In defending these bonuses, AIG Chairman Edward Liddy said outside lawyers informed AIG that it had contractual obligations to make the payments [to its executives] and could face lawsuits if it did not do so. Liddy said the company had entered into the bonus agreements in early 2008 before AIG got into severe financial straits and was forced to obtain a government bailout last fall. Shouldn’t the government had know this ahead of giving AIG $160 billion? Maybe-just maybe-bankruptcy was the way for them to go. All contract would have to be renegotiated.
Benanke doesn’t believe that any business “to big to fail” should file for bankruptcy. The Feds rescued AIG so that they could avoid bankruptcy. The Feds believe that a bankruptcy filing would have caused losses and problems for financial institutions and policyholders globally that were relying on AIG to insure them against losses. Guess what? Foreign banks that invested with AIG did loose money and AIG reimbursed them and others with bailout money the government gave to AIG to save their asses. AIG Reveals How It Used Some Taxpayer Money
Now the government wants to attach strings to these bailouts. You are a bunch of bureaucratic nimrods. It’s kind of too little, too late. Or maybe I should say, “Too much, too late.” Stop taking us Americans for fools.