AIG payouts (not news)
This is interesting — to see where AIG distributed its bailout money — but not news, in the sense that it was clear last fall that the prime reason for pumping governmental money in was to allow AIG to fulfill its obligations under the gross ton of credit default swap protection it sold during the decade.
And that Goldman Sachs is number one on the list is also no surprise. Â This takes us back of course to the Lost Weekend during which Lehman was almost bought but Paulson declined to provide “encouragement,” precipitating instead Lehman’s bankruptcy the next day.
Then and now it seems it was the pending failure of Goldman (triggered by AIG failing to honor the CDS it entered into with Goldman) that persuaded Paulson, that same Monday, to change his mind and start bailing.
ed says:
In the wake of the weekend story detailing the AIG payouts and the 2008 bonuses being paid to its executives, Obama today tells Geithner to use all legal means to block the bonuses or get them back.
March 16th, 2009 at 2:25 pm
Ilidas says:
Yes, that was refreshing.
March 18th, 2009 at 3:43 pm
ed says:
I actually thought it was rather For Public Consumption.
Meanwhile he’s allowing Geithner to do nothing of substance re the big bank system, and reports today and yesterday suggest that Nothing is indeed the confirmed game plan.
March 18th, 2009 at 3:55 pm
ed says:
Furor over the management of AIG has people calling for Geithner’s head.
In defending Timmy yesterday, Obama expressed with clarity his vision of the Presidency as the government’s Technocrat Support Department:
“He is making all the right moves in terms of playing a bad hand,†the president continued. “And what we need to be doing is making sure that we are providing him the support that he needs.â€
Ohh kiss my grits.
March 19th, 2009 at 10:24 am
ed says:
NY Atty General Andrew Cuomo releases list of the AIG bonus babies. Subpoened this past Monday (three days ago).
It is indeed rather shocking. Looting. Seventy-three people given a million or more — supposedly the company chief says so they won’t leave the ship.
And yet eleven of the babies are already no longer employed, one of whom was given $4.3 million.
Either the Treasury or the Fed owns 80% of the company. Gross incompetence it seems to have let this looting happen.
March 19th, 2009 at 2:29 pm