Cynical Synapse

Sun, 15 Mar 2009

World’s Biggest Ponzi Scheme: AIG and Treasury

Filed under: Bailout, Business, Economy, Politics, Take action — cynicalsynapse @ 2:37 pm

American International Group (AIG) has received at least $170 billion in Federal bailout. That includes the lastest $30 billion in taxpayer dollars. The problem is, there’s no transparency. Neither AIG nor Treasury will disclose how the money is being spent.

Bits and pieces come out from time to time. We know AIG’s spending $170 million on bonuses. They justify this on the need to keep talented people so they can fix the remaining $1.6 trillion of toxic assets still on their books. Excuse me, but aren’t these the same guys who are responsible for the bad assets being on their books in the first place? Treasury scolded AIG and AIG Chairman Edward Liddy promised to work on restructuring their bonus system. Liddy says AIG is legally obligated to pay the bonuses, which were set last year before Wall Street melted down. We should all be happy AIG’s chairman finds the situation “distasteful”. Did he accept his bonus?

Some of the money went to European banks—about $50 billion of it. Then there’s the suspicion that lots of it flowed through AIG to Goldman Sachs.

Just like Madoff stayed in his luxury penthouse until the day he pled guilty, AIG and its executives continue their greedy, ruinous behavior. In a 21-page presenation, AIG warned Treasury they needed more just as they were getting that last $30 billion. There’s no end in sight. At least one economist estimates AIG will need another $200 billion.

Seems to me AIG and Treasury are in cahoots to run their own Ponzi scheme. And they’re making Madoff look like an amateur. Tell your Senators and representative enough is enough.

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3 Comments

  1. AIG = Allowing Irreversible Greed.

    This is sick. Why in the world are we helping these companies that keep sending millions to people who do not know how to run a company? They cry yet get paid millions on the “average joes” taxes. Furthermore, I fear this is just the tip of the iceberg. Look what Enterprise rent-a-car did to get bailout funds:

    http://www.butasforme.com/2009/02/25/alert-enterprise-rent-a-car-may-have-fired-employees-as-fake-evidence-when-lobbing-for-bailout-money/

    corporate welfare.

    Comment by Jax — Sun, 15 Mar 2009 @ 6:43 pm

  2. The bonus payout excesses at AIG are just the tip of the iceberg of what is happening with the other Wall Street bailouts including Bank of America. Working productive Americans are bailing out the same crooks that destroyed our economy along with 45% of the wealth in the world and now the American taxpayers and our children will be forced to live a far lower standard of living with reduced prosperity and opportunities due to this but only we pay the price.

    Washington has bailed out the banks, Wall Street & their Washington special interests and much of the cost is added to the national debt to by paid by this and future generations while real estate and investments continue to fall. Find out what a growing repudiate the debt movement could mean for treasuries, the dollar, gold and the stock market and how this is a better alternative than Washington’s plans to monetize the debt in future years and tax and destroy our remaining wealth by depreciating the dollar.

    The Campaign to Cancel the Washington National Debt By 12/21/2012 Constitutional Amendment is starting now in the U.S. See: http://www.facebook.com/group.php?gid=67594690498&ref=ts

    Comment by utah1234 — Mon, 16 Mar 2009 @ 11:23 am

  3. I did. I wrote both my Senator and Representative with an extremely blunt email after this latest round of bonuses handed out by AIG. However, I expect nothing to come of it. As usual, the only response is a form letter on how important it is to save our banking industry. Besides, both of them have a strong belief that the only savior to American and our economy is allowing big businesses grow bigger & richer. Neither of them have spoken out on the misuse of bailout funds. I certainly didn’t vote for either of them the last time, but plenty in my state did. So they feel comfortable.

    Comment by Old-Man — Tue, 17 Mar 2009 @ 3:33 pm


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