AIG – The Other 99% of The Bailout Money

19 Mar

While everyone from Obama to John Stewart raves about the “bonuses” the Bloody Bonuses! There is an abject silence on what would seem to be the more important matter – the other 99% of the money AIG was given in Bailout funding…

Hell, if the government manages to throw money at something at better than a 20% straight BURN rate – that’s NEWS – but not this kind of news. Overhead alone is a regular 20%…

So what’s the big Hoopla over 1% in bonuses?  ONE PERCENT. That’s gotta be a new record in government frugality when it comes to wasting money as a general rule!

Let’s put it in perspective: AIG is estimated to get over 170BILLION from the government. Here’s the story from Philadelphia on  the “in house” payments and bonuses AIG is spending:

“In addition, AIG is paying $121 million in previously scheduled corporate bonuses and hundreds of millions more in retention payments to more than 6,000 employees throughout the company’s global insurance units.” – The PhiladelphiaEnquirer

But their list of beneficiaries of teh rest of the funds is vague and without any detail:

“The funds were paid from the government’s initial $85 billion emergency loan in September and included major firms such as the Goldman Sachs Group Inc., Societe Generale, Deutsche Bank AG, Merrill Lynch & Co. Inc., Morgan Stanley, Bank of America Corp., and Barclays P.L.C.” – where are the numbers as so carefully noted in the employee pay off breakdowns?  We don’t like paying ‘bad employees” – we’d much rather pay “bad banks”?!

Well, what no one seems to be talking about – (and why they talk when they do is another mystery – it’s like none of these people knew all of this at least six weeks ago! – Oh NO!  It’s all NEWS to them! NOW! Yeah, right.

Anyway, as I was saying – the other 99 percent of the money… yeah. that.

Well, here’s what the WSJ has to say on the matter – and they are still looking -

“Some banks that were paid by AIG after it was bailed out by the government

* Goldman Sachs
* Deutsche Bank
* Merrill Lynch
* Société Générale
* Calyon
* Barclays
* Rabobank
* Danske
* Royal Bank of Scotland
* Banco Santander
* Morgan Stanley
* Wachovia
* Bank of America
* Lloyds Banking Group

Source: WSJ research

Other banks that received large payouts from AIG late last year include Merrill Lynch, now part of Bank of America Corp., and French bank Société Générale SA.

More than a dozen firms with smaller exposures to AIG also received payouts, including Morgan Stanley, Royal Bank of Scotland Group PLC and HSBC Holdings PLC, according to the confidential document.

The names of all of AIG’s derivative counterparties and the money they have received from taxpayers still isn’t known, but The Wall Street Journal has identified some of them and is publishing others here for the first time. ” – Wall Street Journal

So here we are- people are giving up their houses for masses of debt that the banks speculated on and cannot recoup; mutual fund managers are losing our retirement funds at a rate faster than the fall of the S & P 500 by an average of 15%; every financial institution on the planet, it seems was caught up in the frenzy of over leveraged over inflated real property mortgages, and at the same time we are paying AIG to pay off the very banks who ran the biggest baddest best ever ponzi scheme on the  whole world. A global housing scandal/bubble/funding bonanza!

It was a completely front loaded, over expensed, and over paid for in the form of up front commissions on every level blow out. And now it’s blown out – and we get to pay for it again? Oh, of course we do. Ha ha. Silly me.

And this, children, is why Central Banks are GOOD for you. ;0

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