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Wednesday, October 08, 2008

AIG Bailout Smack in the Face

It took less than a week for the bailout plan to slap Joe Taxpayer (formerly Joe Sixpack before AA) in the face. I think we all knew that you can not hand a blank check to an industry that prides itself on million dollar bonuses and golden parachutes that would make royalty blush.

Over at AIG they went and threw a party for their top performers after they drew off almost $61 Billion from the government bailout of AIG. Somehow the executives over at AIG thought it was wise to blow almost $500,000 for a party on the U.S. Taxpayers dime just one week ago! Over at the Washington Post they have this on the topic…

AIG Gets More Government Bailout Cash

Only one day after it was revealed that AIG had sprung for a $440,000 spa vacation shortly after getting an $84 billion government-loan bailout comes this report: The government is loaning AIG another $38 billion.

AIG, the world's largest insurer, said it has already drawn down $61 billion on its $84 billion line of credit from the government. AIG's financial products division got into the mortgage-backed securities market and incurred billions in losses, sending the entire company teetering toward bankruptcy. The $84 billion loan was meant to help prop up AIG.

During a hearing before the House Oversight committee on Tuesday, it was revealed that just last week, about 70 of the company's top performers were rewarded with a week-long stay at the luxury St. Regis Resort in Monarch Beach, Calif., where they ran up a tab of $440,000, The Post's Peter Whoriskey reported today.

Snip n Hold on to your wallet…

Today, AIG chief executive Edward Liddy defended the vacation by pouring gasoline on the fire.

Such trips "are standard practice in our industry," Liddy said, no doubt thrilling every other major insurance company.
- Washington Post

You would think that the Treasury Department or even the office of the Attorney General would be pouncing on this abuse but they probably won’t. Big boys will be big boys! Nope, now the treasury is going to need to loan AIG another $38 Billion so they can pay the bar tab for these top performers in the company that would have gone belly up?

President Bush should be ripped! No, that would be out of character for him when this sort of blatant abuse happens. I’m sure somebody at the White House is pissed and I’m laying bets on the woman that answers the mail for the under secretary of we don’t give a damn department.

*****Fatvine has linked in... Thank you!

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