rssAIG Wants Another Bailout – Where’s Rick Santelli When You Need Him?
Tuesday, February 24, 2009 at 8:41 am
- 3 Comments
The insurance giant AIG is back with its hands out, asking for yet another government bailout, the New York Times reports. At TPM, Josh Marshall raises an interesting question. Where does the bailout money for AIG — at $150 billion and counting — really go?
When we pour $10 or 30$ billion into AIG, it doesn’t vanish into thin air. It goes to someone else. Earlier evidence suggested that Goldman Sachs had massive exposure to a potential AIG bankruptcy. And it’s been alleged — though not on any harder evidence than a certain elementary logic — that AIG got saved in part because of people tied to Goldman who were running Bailout Inc. last fall.
Whatever the truth of that, I think it’s time we know more clearly where the $100 or so billion we’ve ‘loaned’ AIG so far went. (There’s been some data on this. But I don’t believe it’s been exhaustive or particularly detailed.) And where’s the next dollop of money likely to go? Whoever these recipients are, they are by definition companies that are in the capitalism business who made a bad bet on AIG, probably a lot of bad bets on AIG.
They don’t seem to be taking the hits, however. Taxpayers are the ones paying for the bad bets.
But let’s just ignore investigating all that and blame the whole thing on irresponsible homeowners instead. It makes for a better viral video.
3 Comments
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Comment posted February 24, 2009 @ 2:32 pm
Is AIG an example that trying to bailout these failing companies is not working? AIG has received a $150 Billion rescue package from the government and still is reportedly asking for more help.
When these failing companies are still going under despite multi-billion dollar rescue packages is it time to reexamine the current economic initiatives being promulgated today by the government?
http://www.weeklypoint.com/2009/02/24/aig-fears…
Comment posted March 29, 2009 @ 7:10 am
The outrage over AIG using less than 0.1% of the $173 billion stolen (so far) to pay employee “bonuses” [sic hush money] is silly. The Department of Justice (“DoJ”) should prosecute and send the guilty parties to jail. Here is a prescription for recovering the $173 billion that AIG has stolen from the federal government thus far.
(1) The DoJ should file suit in a U.S. District Court for civil conspiracy, fraud and breach of fiduciary duty against AIG and AIG’s directors. The DoJ can prosecute these defendants under the False Claims Act (31 U.S.C. § 3729–3733), the Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. § 1961–1968), and the Foreign Corrupt Practices Act (15 U.S.C. §§ 78dd-1).
(2) The DoJ should add as co-defendants any counterparties to AIG’s fraudulent derivative contracts (credit default swaps, etc.) who were unjustly enriched by being paid-off using any portion of the $173 billion that AIG extorted and defraud from the federal government.
(3) DoJ should file a motion in the case seeking the imposition of a constructive trust, in equity, over the federal government’s money, and/or any assets into which the counterparties converted the federal government’s money.
(4) The DoJ should allow a jury of intellectually honest citizens determine if AIG and AIG’s directors are liable for claims against them; and if they are, the amount of money that each party unjustly enriched by AIG’s extortion and fraud scam should return to the federal government.
(5) The DoJ should take on all appeals through to the Supreme Court so that the consequences of violating the laws that AIG has violated will set precedent for prosecuting others who choose to follow AIG's path.
See http://texasbarwatch.blogspot.com/ for information on how the U.S. Congress has facilitated AIG's theft and failed to prosecute the company or its directors for these crimes. Also, http://TexasBarWatch.US/ and http://Iran-Conoco-Affair.US/.
See http://www.delawarelitigation.com/2009/02/artic… for information on how AIG shareholders (read: lawyers fronting for AIG shareholders) are attempting to unjustly enrich themselves on U.S. taxpayer money being used to defend AIG's corrupt directors.
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