tag:blogger.com,1999:blog-203628109129283105.post617731270195523817..comments2009-10-13T18:17:59.329-04:00Comments on one dimension: let the bailouts begin! - 3/10/08MrBrentLessardhttp://www.blogger.com/profile/08950122883252541062noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-203628109129283105.post-83784568539372941312009-03-17T05:19:00.000-04:002009-03-17T05:19:00.000-04:00A March 17th, 2009 WSJ article on AIG: The Real AI...A March 17th, 2009 WSJ article on AIG: <BR/>The Real AIG Outrage: http://online.wsj.com/article/SB123725551430050865.html?mod=rss_opinion_main<BR/><BR/>From the article:<BR/>President Obama joined yesterday in the clamor of outrage at AIG for paying some $165 million in contractually obligated employee bonuses. He and the rest of the political class thus neatly deflected attention from the larger outrage, which is the five-month Beltway cover-up over who benefited most from the AIG bailout.<BR/><BR/>Taxpayers have already put up $173 billion, or more than a thousand times the amount of those bonuses, to fund the government's AIG "rescue." This federal takeover, never approved by AIG shareholders, uses the firm as a conduit to bail out other institutions. After months of government stonewalling, on Sunday night AIG officially acknowledged where most of the taxpayer funds have been going.<BR/><BR/>Since September 16, AIG has sent $120 billion in cash, collateral and other payouts to banks, municipal governments and other derivative counterparties around the world. This includes at least $20 billion to European banks. The list also includes American charity cases like Goldman Sachs, which received at least $13 billion. This comes after months of claims by Goldman that all of its AIG bets were adequately hedged and that it needed no "bailout." Why take $13 billion then? This needless cover-up is one reason Americans are getting angrier as they wonder if Washington is lying to them about these bailouts. <BR/>...<BR/>The Washington crowd wants to focus on bonuses because it aims public anger on private actors, not the political class. But our politicians and regulators should direct some of their anger back on themselves -- for kicking off AIG's demise by ousting Mr. Greenberg, for failing to supervise its bets, and then for blowing a mountain of taxpayer cash on their AIG nationalization.<BR/><BR/>Whether or not these funds ever come back to the Treasury, regulators should now focus on getting AIG back into private hands as soon as possible. And if Treasury and the Fed want to continue bailing out foreign banks, let them make that case, honestly and directly, to American taxpayers.Bukco13https://www.blogger.com/profile/01906047132062805453noreply@blogger.comtag:blogger.com,1999:blog-203628109129283105.post-1352356076308470122009-03-16T13:22:00.000-04:002009-03-16T13:22:00.000-04:00from the Toronto Star:'Distasteful' AIG bonuses sp...from the Toronto Star:<BR/><BR/>'Distasteful' AIG bonuses spark outrage; Insurance giant hands $165 million U.S. payout to executives in unit that nearly ruined firm:<BR/><BR/>Leaders of the White House economic team bellowed about bonuses at bailedout insurance gian AIG Inc. and pledged to stop such payments in the future.<BR/><BR/>From one Sunday talk show to the next, they tore into the contracts that AIG asserted had to be honoured, to the tune of about $165 million (U.S.) and payable to executives by yesterday - part of a larger total payout reportedly valued at $450 million - even as the company has benefited from more than $170 billion in a federal rescue.<BR/><BR/>AIG has agreed to requests from the administration of President Obama to restrain future payments.<BR/><BR/><BR/>Quote from Austan Goolsbee, staff director of the president's Economic Recovery Advisory Board: "I don't know why they would follow a policy that's really not sensible, is obviously going to ignite the ire of millions of people, and we've done exactly what we can do to prevent this kind of thing from happening."MrBrentLessardhttps://www.blogger.com/profile/08950122883252541062noreply@blogger.comtag:blogger.com,1999:blog-203628109129283105.post-42292214480508786202009-03-16T01:56:00.000-04:002009-03-16T01:56:00.000-04:00That's interesting, I hadn't heard that about AIG....That's interesting, I hadn't heard that about AIG. If you could pass on a link or something I'd be interested to hear more about that. <BR/><BR/>It is unfortunate how the media suffers from a kind of momentum effect, where when one thing seems to be selling there's a mad rush to cover it and of course that lead to partisanship, etc... And of course, nothing sells better than doom and gloom!Bukco13https://www.blogger.com/profile/01906047132062805453noreply@blogger.comtag:blogger.com,1999:blog-203628109129283105.post-71070457874988588912009-03-15T14:30:00.000-04:002009-03-15T14:30:00.000-04:00I would like to hear the media report on individua...I would like to hear the media report on individuals who have been helped by the bailout. It appears gloom and doom are what the media wants to report. Didn't we just find out AIG had to pay those bonuses because the lawyers determined it was illegal if they didn't? Sorry, I could not get to the rest of your post because I got hung up on AIG!Anonymousnoreply@blogger.com