Truthdig - Ear to the Ground - Bigger Bailout Expected for AIG

			November 13, 2009 Log in / Register
			Text Size

In a Hole

Getting Out of Afghanistan With Grace

'Daily Show': Cold Busted, Sean Hannity

The Socialist Threat Comes to 'South Park'

Happy 40th Sesame Street

Where Are the Real Deficit Hawks?
By David Sirota

Bring Them Home, Mr. President
By Eugene Robinson

Getting Out of Afghanistan With Grace
By William Pfaff

Where Does the Caving End?
By Ellen Goodman

Bomb Kills 7, Wounds 35 at Pakistan Spy Agency

Obama Calls for Intel Investigation After Fort Hood Shooting

U.S. Adult Cigarette Smoking Rate Rose in 2008

Fed Restricts Overdraft Fees

U.N. Criticizes U.S. Homeless Situation

The Pleasure Is in Your Hands

The Socialist Threat Comes to ‘South Park’

‘Daily Show’: Cold Busted, Sean Hannity

The Onion: Is Anyone Safe From Google?

‘Sesame Street’ Turns 40

Marc Cooper on the Fate of Cesar Chavez’s Dream
By Marc Cooper

Art Market Gets a Boost from Sotheby’s, Warhol

Freedom’s Fight
Gary Phillips

Emma Thompson, Petition Tourist?

Financial Meltdown 101

A Dig compiled by the editors of Truthdig

Vetting Sarah Palin

A Dig compiled by the editors of Truthdig

Bush v. Gore: The Court Cases and the Commentary

E.J. Dionne
$19.95

Charm Offensive: How China’s Soft Power Is Transforming the World

By Joshua Kurlantzick
$11.56

Golf Shirt

$21

Bigger Bailout Expected for AIG

Flickr / reubenaingber

The government is expected to come to AIG’s rescue for a fourth time as the mega-insurer prepares to announce the biggest quarterly loss by a single company in the history of the world. Reports put the bonus bailout at $30 billion, less than half of AIG’s expected quarterly loss.

New York Times:

The federal government is preparing to loosen the terms of its huge loan to the American International Group and provide another $30 billion to the insurer as it prepares to report the biggest quarterly loss in history on Monday, $62 billion, people involved in the discussions said Sunday night.

The intervention marks the fourth time that A.I.G., the giant insurer, has had to seek assistance from the federal government. The government already owns nearly 80 percent of the insurer’s holding company as a result of the earlier interventions, which included a $60 billion loan, a $40 billion purchase of preferred shares and $50 billion to soak up the company’s toxic assets.

The deal would have the government commit another $30 billion in cash to A.I.G. from the Troubled Assets Relief Fund, should the company need it, according to the people involved in the talks.

Read more

More Below the Ad

Advertisement

TAGS: aig bailout economy tarp treasury

Related Entries

November 12, 2009 Happy 40th Sesame Street
November 11, 2009 The Economy Looks Better in Paul Krugman’s Neighborhood
November 10, 2009 The Man Who Put the Rainbow in ‘The Wizard of Oz’
November 9, 2009 Goldman Sachs Becomes ‘SNL’ Punchline
November 8, 2009 Kucinich: Why I Voted No

Email to a friend

Get truth delivered to
your inbox every week.

Previous item: Conservatives Cling to Romney

Next item: Islamic Banks Presented as an Economic Model

Elsewhere: .

Comments

Are you a Truthdig member yet? Login now, or register with Truthdig.

By #12345, March 10 at 7:49 pm #
(Unregistered commenter)

AIG is in the insurance business, n’est pas. Did it insure slices of those subprime loans marketed by Wall Street, sold/bought by big banks. Did the govt just buy both sides of those deals for us…

Report this

By Stephen Smoliar, March 2 at 5:51 pm #

The scary thing about digging down to the cause of this mess is that it reveals what constitutes “normative practices” in the financial sector:

http://therehearsalstudio.blogspot.com/2009/03/todays-mess.html

Report this

By Tom Semioli, March 2 at 3:58 pm #
(Unregistered commenter)

STEVE E. Fool me once, shame on me, fool me twice, and we won’t get fooled again.

BTW: The country is already bankrupt!

Report this

By msgmi, March 2 at 3:35 pm #
(Unregistered commenter)

The CEOs who have led AIG et al into the financial meltdown remain in place yet another day as the gov’t pours additional billions into the chcanery mess. If such hubris were to be practiced and exposed in the back alleys of Main Street, the perps would have been dealt with as soon as the whispers of chicanery were heard. Wall Street culture is different, ponzi schemes and profits have no room for rules.

Report this

By artie, March 2 at 2:05 pm #
(Unregistered commenter)

Goldman Sachs trained many a swindler- Greenspan, Greenberg, Rubin, Bernanke, Paulson, etc. None has been indicted- it was all legal!!! They all will be given billions in bonuses for their greed, curtesy of our children and grandchildren. Obama will bankrupt the country within three years.

Report this

By Eric L. Prentis, March 2 at 1:11 pm #

AIG is an impediment to our economic recovery, let this stinking corpse finally be buried.

Report this

By Steve E, March 2 at 6:03 am #
(Unregistered commenter)

How does it go? Fool me once——

Report this

By Chris, March 2 at 3:16 am #
(Unregistered commenter)

>And where is the government going to get this paper they call money?<

Borrowing tons of it from China until they, and the rest of the world, figures out America is no longer worth loaning money to which is a scary possibility.

60 minutes’s Scott Pelley recently did a piece on another oncoming foreclosure crisis regarding prime mortgages. Apparently prime mortgages weren’t immune from “creative loaning” mechanisms. More depressing is that it appears there is a looming crisis in regards to commercial real estate and credit cards. This has been mentioned by Gerald Celente, Nouriel Roubini, Peter Schiff and others. Schiff actually joked that with the endless bailouts occurring that people should just max out their cards because the credit card companies are going to get a bailout just like every one else.

Report this

By BlueEagle, March 1 at 11:09 pm #

Thank you Democrats for continuing Bush’s failed policies. I wonder if there are any people out there that still think there is a difference between Bush’s and Obama’s policies.

And where is the government going to get this paper they call money?

Report this