|
|
June 19, 2013
|
|
|
|
 AIG on the Mend?Posted on Sep 21, 2009
After narrowly escaping catastrophe during the financial implosion that began last fall, American International Group—otherwise known as AIG—is leveling out, according to a cautiously optimistic new report from Congress’ Government Accountability Office. —KA
Advertisement TAGS:
|
Guantanamo Prisoner’s Case Demonstrates Unfairness of Military Commissions
Email 
Print
Share
Email to a friend
Newsletter 
Like Us
Follow Us
Get Our Feed
Tags|Bazaar|Podcast|About Us|Contact Us|User Agreement|Privacy Policy|FAQ: Comments and Moderation | Google+
© 2013 Truthdig, LLC. All rights reserved.
By Mark, September 21, 2009 at 1:32 pm Link to this comment
(Unregistered commenter)
Per the source article:
“The research arm of Congress reported on Monday that the American International Group’s financial condition HAD STABILIZED BUT said IT WAS NOT CLEAR WHETHER the giant insurance group WOULD EVER BE ABLE TO RESTRUCTURE AND REPAY ITS FEDERAL RESCUE PACKAGE.”
Emphasis added.
Couple of observations:
(1) It’s really AMAZING what a couple of hundred BILLION Dollars can do, that is, if you’re part of the Wall Street establishment. Apparently, government bailouts are o.k. if they benefit the guys at the top. Homeowners in default and on the verge of foreclosure get to experience capitalism in the raw. Ditto for folks without health insurance - no public option for you.
(2)The highlighted language is rich! Kinda like when doctors say “The procedure was a success, however the patient didn’t respond to treatment.” Those federal rescue funds are as good as lost - they will never be repaid. Counterparties like Goldman Sachs got the dough and passed it out to its executives in the form of bonuses and other compensation. At the time of the bailout AIG was bankrupt anyway you define it: (a) unable to pay its debts as they became due AND (b) its debts exceeded its assets. Whatever assets it does possess probably consist of receivables and maybe some commercial real estate. Good luck trying to realize any dough from either of those.
In the meantime we’re told that healthcare “reform” must not add a dime to the deficit.
Keep in mind that the recently killed F-22 fighter cost the taxpayer $62 BILLION through the end of 2006!
I’d say we’re living in Bizarro World, but that’s unfair to Bizarro World.
Report thisBy felicity, September 21, 2009 at 1:18 pm Link to this comment
Go figure. We (our money) bailed out Citigroup at a cost of $20 billion. That amount would have bought us the entire company. As it is, we got 7.8% of the equity.
AIG sold insurance for which it had little monetary backup - $550 billion worth, $100 billion backing it. It insured CDS, a contract insuring a bond if the issuer defaults. Bottom line, it insured sub-prime mortgage backed securities. Brilliant - like selling a guy whose building is on fire, fire insurance.
They made their money down the line, from CEO to salesman, and they’re long gone, rich and apparently scot-free. They dealt fraudulently and we’re paying their penalties.
(Found out yesterday from a real-estate person that banks are still loaning on sub-prime mortagages - in fact those are about the only housing loans they’re making. What are the odds more bail-outs are in the offing?)
Report this