During all the stories about extravagant AIG ventures to luxury resorts and such, there has also been an undercurrent that the original $85 billion bailout’s not enough. Well, sure enough, just as AIG asks for another $40 billion, executives went to another resort. By now it should be obvious AIG executives are dishonest, greedy, and not to be trusted! Don’t give them another dime! In fact, take back what’s already been promised from the public coffers.
The deal being worked on behalf of AIG looks almost as much like the sort of shell game AIG itself played to get itself into this mess. Because of AIG’s spectacular incompetence, the US taxpayer is going to pony up about $20 billion for bad investments due to extremely risky greed on AIG’s part.
According to AIG spokespeople, this is another one of those “essential to the business” events, one which so-called other sponsors will pick up 90% of the $343.000 cost. Then why all the secrecy? According to ABC 12, which broke the story, resort personnel couldn’t even say AIG. In fact, no less than AIG’s CEO justified the expenditure.
The added $40 billion for AIG is coming out of the $700 billion bailout. Just how is not unlike the financial shenanigans that created the crisis in the first place. The Government cut the original $85 billion loan to $60 billion and replaced a $37.8 billion loan guarantee with a $52 billion aid package. AIG also has access to another $20.9 billion through the Fed’s so-called commercial paper program.
What’s truly astounding is the bailout banks still plan to pay bonuses to top executives. About $26.6 billion worth! When I worked in private industry, bonuses were dependent on the company making money. And, they did not exist on the basis of taxpayer bailouts! If the company failed to make a profit, then there should be no bonuses. And, by definition, if the company taps into the Wall Street bailout, it didn’t make a profit so no one earned a bonus.