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?
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.