Goldman Sachs Group Inc and a parade of European banks were the major beneficiaries of $93 billion in payments from AIG — more than half of the U.S. taxpayer money spent to rescue the massive insurer.
The revelation on Sunday by American International Group Inc was another potential public relations nightmare, coming on the same weekend that the Obama administration expressed outrage over AIG’s plan to pay massive bonuses to the people in the very division that destroyed the company by issuing billions of dollars in derivatives insuring risky assets.
The size of the payments also illustrates how seriously a potential collapse of AIG was viewed by the regulatory authorities. U.S. Federal Reserve Chairman Ben Bernanke said in an interview with CBS news magazine “60 Minutes” that the failure of AIG would have brought down the financial system.
AIG, an embattled insurance giant that has received federal bailouts totaling $173 billion and is now paying $165 million in employee bonuses, is at the heart of a global financial crisis that President Barack Obama is trying to address with plans for trillions of dollars in spending.
As part of those efforts, Obama will announce steps on Monday to make it easier for small business owners to borrow money, officials said.
March 16th, 2009 at 5:34 am
AIG should have been allowed to fail. Propping it up just delays to pain. The bottom is going to drop out of this corrupt system (federal reserve, fiat currency, etc.) someday so why delay it by looting the taxpayers. Death to the banksters!
mike Reply:
March 16th, 2009 at 10:04 am
obamas a fucking stupid failure
steve Reply:
March 18th, 2009 at 8:27 am
IT has nothing to do with obama it started in 2000 during bush rein get the facts just because the current administration inherited this crap you cant blame them during the bush admin all the fat hogs got fatter so when the time came they would all have there pockets full of cash and sit back and laugh at how they screwed us as Americans
March 16th, 2009 at 5:43 am
AIG should have been allowed to fail, hell, it’s still failing, it just got a capital injection from the American People to pay it’s CEO’s 165 million in bonus money. If the company is failing, why does ANYONE get a Bonus… good job, our company is dying, here’s 165 million.
March 16th, 2009 at 6:17 am
Grrrr you people need to understand that it was the derivatives not the bad home loans that caused this mess. I have been saying for months now that the money was to pay back foreigners for the scams they invented. The stupidity of my fellow Americans never ceases to amaze me.
March 16th, 2009 at 6:21 am
Grrrr you people need to understand that it was the derivatives not the bad home loans that caused this mess. I have been saying for months now that the money was to pay back foreigners for the scams they invented. The stupidity of my fellow Americans never ceases to amaze me.
March 16th, 2009 at 6:21 am
The headline should not be “AIG pissing away bailout money.” It should be, “PEOPLE ARE SURPRISED AIG is pissing away the bailout money.” I mean what did they think AIG was going to do, invest in the sinking US economy???
Social Viability Reply:
March 16th, 2009 at 3:58 pm
Exactly!
The politicians are just doing what they’re told (like always) and the financiers are making off with the loot (like always).
Don’t be surprised. These criminals have been robbing you and your family for generations.
If you want it to stop happening, just stop cooperating with them.
The only reason they are in power is because we grant them their power. The only reason they rule us is because we go along with them.
1. Stop Watching TV. Virtually all of TV is a mindwashing campaign to keep you mentally addled and incapable of creating a society not under their control.
2. Stop Voting. The politicians cannot claim any legitimate authority if we stop running out to the polls whenever they tell us we should.
3. Stop Using Their Money. Switch to an alternative currency where possible. If the Fed cannot exploit you through usury and inflation – and if the govn cannot extract taxation from you, their system will dissolve through lack of funding.
You will have to stand up for yourself and protect yourself and your family when they start frothing at the mouth over the demise of their system. But that is simply a necessary task in the pursuit of liberty and happiness.
Don’t fight the system:
Replace it
http://socialviability.com/
March 16th, 2009 at 6:28 am
It’s not a bailout, it never was…It is a “Trough Fund”, you know that thing that animals go to, to replenish when thristy…this is set up to replenish the filthy rich who exhausted cash, so they can stay rich. Why the public hasn’t burned Wall Street to the ground is beyond me, have we become that passive as to allow them to continue this “sham of a scam”. I can only assume people wouldn’t fall for the Nutshell Game, well this is the same thing. Wake Up.
Malachi4 Reply:
March 16th, 2009 at 8:55 am
I think you are right-on dude.Sorry to say.
Thom Ripley Reply:
March 16th, 2009 at 10:51 am
Wait until folks are hungry. They’ll be trials on television, then. I foresee a French Revolution-style scenario, hopefully without the guillotine.
Can I be Robespierre?
March 16th, 2009 at 6:37 am
AIG Untouchable;
They hold Government Pensions…
March 16th, 2009 at 7:16 am
AIG Untouchable;
They hold Government Pensions…
Sorry, forgot to add great post! Can’t wait to see your next post!
March 16th, 2009 at 7:47 am
AIG, an embattled insurance giant that has received federal bailouts totaling $173 billion and is now paying $165 million in employee bonuses, is at the heart of a global financial crisis that President Barack Obama is trying to address with plans for trillions of dollars in spending.
As part of those efforts, Obama will announce steps on Monday to make it easier for small business owners to borrow money, officials said.
AHH YES THROUGH THE RAPED SHEEP A CRUMB HERE AND THERE.
March 16th, 2009 at 8:15 am
This is clearly a piece meant to get the people enraged and pissed off enough to start the riots that they expected a long tome ago, now they’re going out of their way to get the people pissed enough to riot in the streets, they MUST HAVE RIOTS, their plan just won’t work unless you RIOT, so RIOT already you know you want to, do it, go ahead people, give them more of what they want.
Gunnery Sgt. Hartman Reply:
March 16th, 2009 at 10:26 am
Riots won’t start unless the grocery stores are empty and the power is out. If that happens then there will be riots. That is also when the people who have planned ahead with provisions will stay put for awhile. I hope it never happens but…..
A news story alone will not make people riot in the U.S.
March 16th, 2009 at 8:16 am
If we had dealt with this mess 10 or 20 years ago by letting them fail back then, we wouldn’t be having this problem now. Fact is the criminals were and still are running things. Our criminal elite are out of control and need someone to stop them. Flooding the world with artificial money like they’ve done for the last decade or so just won’t work anymore.
March 16th, 2009 at 8:41 am
All CNN and CNBC is talking about today is $165 million in bonuses, but is that just a diversion from the disclosure that over half of the $170b is going outside the United States?
If giving money to AIG had to be done regardless, then so be it. Tell taxpayers the truth instead of pointing the finger at AIG. Be angry at the politicians for allowing this to happen.
March 16th, 2009 at 10:57 am
the web bot is correct expect doom on a wide scale to come at the end of march, this is the spark that will light the fire
March 17th, 2009 at 5:36 am
AIG is not doing the right thing. The concept of Bonus is been defeated here. their hidden agenda is yet to unfolded to public. this cannot and must not be allowed to happen in America. Tax payer money is not meant for bonus share out. This must never happen
March 18th, 2009 at 12:06 am
The elite have assummed that the ‘Riots’ will not get out of hand as they did in the ‘French Revolution’ But the riots might get out of hand. I was at the WTO demo in Seattle and the demo almost did get out of hand or it would of on the Tuesday if more younger people were in the demo instead of the unions. The youth have no future and therefore have nothing to lose in a riot. If we have unemployment demos and unemployed Americans get killed in a demo then all hell will break lose. When people have lost everything they have nothing else to lose they will fight to the death, Sun Tzu “The Art of War”
March 18th, 2009 at 3:03 am
The same politicians who are pretending to be outraged (Chris Dodd exclusively) put a provision in the bailout bill allowing AIG and OTHERS to give out these bonuses promised before the bailout, LEGALLY. The wording Chris Dodd added was an ammendment to the original bailout, but he’s the one trying to rousing us up. The politicians have allowed these banks to bury themselves, then forced taxpayers to bail them out. Did AIG do anything illegal? I think the bailouts, all of them, were completely wrong. Fellow Americans rejected these bailouts, but; our elected representatives chose to do the opposite of what their supporters want. The same Congressmen and women chose to also give these banks huge sums of money, not limit its use, and put verbage in bills to legally allow 165 million in bonuses. We as Americans need to hold our elected representatives accountable for their mistakes, not AIG for taking advantage of our government’s continued failure and shortsightedness.
March 18th, 2009 at 8:20 am
AIG failed if they let AIG get away with this others will follow its like the poinzee scheme madof had tax payers should have never paid a penny. i would like to say after listening this started back in 2000 during the bush leadership and crashed in September during the end of the worst presidency ever so we cant blame the current administration and Libby was appointed by bush seems that all the dirty laundry started years back during the bush leadership.
now what has to happen is when we gained a new leadership they have to get out that big vacuum and clean up one hell of a mess and it will take some time. you cant blame something on someone that didnt start it alls you can do is clean up the mess and regardless of contracts aig sucks and should have been in bankruptcy to big for there britches