By: homunculus
The Big Takeover: The global economic crisis isn't about money - it's about power. How Wall Street insiders are using the bailout to stage a revolution
View ArticleBy: marsha56
And just when you thought it couldn't get any worse: AIG sues Government for $306 Million in Tax Payments.
View ArticleBy: homunculus
Perp Walks Instead of BonusesRobert Scheer on AIG Bonuses, the "Backdoor Bailout" and Why Obama Should Fire Geithner, Summers
View ArticleBy: Artful Codger
When a bond is issued, there is insurance issued as well, a guarantor agrees to pay if the issuer can't. Problem is the agreements say that if the insurer goes, the whole note is payable on demand....
View ArticleBy: jefftang
It's pointless to muster outrage that this is how the funds are being spent. The whole point of the AIG bailout was so they could pay these obligations. If AIG was simply broke, they could have been...
View ArticleBy: delmoi
Anyone else notice that AIG's stock tripped in the past few days? I think it may be because the government owns 79%, and if they own any more they might have to be responsible for AIGs (potentially...
View ArticleBy: ornate insect
AIGFP needs to be separated from its...parent and put into temporary government receivership.
View ArticleBy: Ironmouth
The question is simple--will AIG going down cost more than keeping AIG afloat? The anwser is it costs more for them to go down because of the collateral effects of what happens. AIG is tied to a lot of...
View ArticleBy: Ironmouth
Interesting to see Rabobank there. They've been rather vocal about them not being caught up in the whole subprime mess, unlike its major Dutch competitors Rabobank is getting the money because they are...
View ArticleBy: ornate insect
Despite Cuomo's subpoenas, AIG is not releasing its bonus information.
View ArticleBy: ornate insect
Question: Why is hedge-master Joseph Cassano, the guy who ran AIGFP in London (ground zero in the financial bubble) not in jail? His CDS chop-shop, which blew half a trillion dollars, and which he ran...
View ArticleBy: delmoi
To all the people pointing out how this is now "Obama's" fault, and that somehow those of us who are angry and frustrated at the bailout are hypocrites: Wrong. correct Fixed that for you. Seriously,...
View ArticleBy: ornate insect
Geithner's plan [TALF] to invite private equity and hedge fund investors to a fire sale of bank assets is a return to the very same policies and practices that triggered the financial crisis in the...
View ArticleBy: Smedleyman
Yeah, that's what strikes me - the government owns 80% of the company but AIG was refusing to disclose its trading partners, all that. And this "Privacy Obligations" regarding the recipients for the...
View ArticleBy: clevershark
"And, AIG can't even go bankrupt and clear these off the sheets because of the fact that derivatives payments cannot be discharged in bankruptcy." That strikes me as a sword that swings both ways --...
View ArticleBy: digsrus
When my kid gives me a call and says "I'm in trouble, I've run up a gigantic credit card bill!" I'm going to say don't worry son, I've learned how to handle this kind of problem from the government....
View ArticleBy: morganw
The flip side however is that these are just collateral postings - not payments. Is the govt. putting real $$ into AIG to hold as collateral? It seems like it could just assume the responsibility to...
View ArticleBy: Xoebe
To all the people pointing out how this is now "Obama's" fault, and that somehow those of us who are angry and frustrated at the bailout are hypocrites: Wrong. It is perfectly okay to be angry with the...
View ArticleBy: Mastercheddaar
God am I pissed off about this!!!!! Doesn't surprise me at all either. Who in the fuck are they to get paid more money than I'll ever see in my life time for totally fucking up our economy. (note I...
View ArticleBy: snofoam
If you knew that ultimately some big banks and financial companies would have to be nationalized so they could be cleaned up, but it was politically unpopular, what would you do? Maybe let these idiots...
View ArticleBy: JPD
So if the govt in effect already owns AIG, why don't they formalize it by nationalizing then renege on the bonus contracts? You can still sue the government.
View ArticleBy: AppleSeed
"Whom", I know you're out there somewhere. Poor lil' neglected interrogative pronoun. Perhaps we could use some of that bailout cash to send a card or a fruit basket to "whom". If the big 'O' didn't...
View ArticleBy: dydecker
every shareholder is 98% wiped out. AIG actually did get nationalized. So if the govt in effect already owns AIG, why don't they formalize it by nationalizing then renege on the bonus contracts?
View ArticleBy: delmoi
Oh and I should have added, they were $22 before the crash, so every shareholder is 98% wiped out. AIG actually did get nationalized.
View ArticleBy: delmoi
I kinda hoped that some scheme would be authorized to wipe out the shareholders AIG shares are like 60¢, up from 35¢ last week for some reason though. The entire market cap (the sum value of every...
View ArticleBy: a robot made out of meat
I kinda hoped that some scheme would be authorized to wipe out the shareholders (can 451$M come from their 20%?) and the true gamblers (hedge funds buying CDSs with no underlying investment to cover)...
View ArticleBy: diogenes
By the way, you guys all realize it was Obama's decision to keep doing this right? I do realize that. Where do I apply for my personalized self-flagellation rod?
View ArticleBy: gimonca
This means that corporations, municpalities, states and the like who have their bonds guaranteed by AIG would have to pay back all the money owed immediately, rather than over time. So perfectly...
View ArticleBy: dydecker
Haha, it's not my face. I would actually sacrifice the very small amount of money I have to lose just to see all of the financial industry get their comeuppance. Human nature, squire.
View ArticleBy: JPD
Let AIG go bankrupt and let the chips fall where they may. Definition of cutting off your nose to spite your face.
View ArticleBy: JPD
Note also that one of the talking points during the bailout of the auto companies was that the UAW contracts were too damaging to the auto companies, and should be renegotiated so the auto workers were...
View ArticleBy: dydecker
The bonuses are indefensible, but legally what can AIG or the government do? Let AIG go bankrupt and let the chips fall where they may.
View ArticleBy: JPD
Parts A and B at the very least would not have been a problem if CDSs had been regulated as insurance, because then AIG would have had to maintain capital reserves. Of course, had that been the case...
View ArticleBy: Mur
Note that one of the talking points in defense of the bonuses has been that they are "contractually obligated" to pay these. Note also that one of the talking points during the bailout of the auto...
View ArticleBy: Kirth Gerson
the National Guard can't stop them. Could they try? Maybe if they weren't all occupying other countries.
View ArticleBy: vivelame
The funniest part is that, if i got this right, you can actually take a Credit Default Swap ("insurance") on credits you're *not* a part to. I could, if i had the money, take a CDS on a transaction...
View ArticleBy: moonbiter
Allan Gordon: I just don't see how the financial sector thinks this is a good idea. Two reasons:They're dumbfucks. But so are we, becauseit will probably work. They will get their bonuses. And even if...
View ArticleBy: Allan Gordon
I understand the reasons for bailout as well as the reasons for nationalization. However I just can't get why the entire fucking financial sector has to be so god damn gung ho for bonuses after they...
View ArticleBy: fullerine
And the other problem is the moral hazard issue I see someone has been breaking the first two rules of Moral Hazard Club.
View ArticleBy: atrazine
Were these paid because of actual defaults? The creation of the Maiden Lane entities makes me think the TARP implementors are being creative in stretching dollars, but I ran across this in the 3 part...
View ArticleBy: delmoi
Larry Summers: Stop the AIG Bonuses. Yes You Can. All that he's saying is that AIG shouldn't get to deduct those bonuses from their taxes, and then in theory the government would get that money back....
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