Does AIG Stand For A*Holes In Gotham?

Even though AIG wasn't legally prohibited from doling out the bonuses, their demonstrable foolishness is indicative of a wanton greed, a willful ignorance and pure disrespect for the taxpayer. I'm not sure what Congress or the Executive Branch can do regarding the bailout bonus money, but given the populist sentiment in America right now, I applaud their efforts. Follow Andrew Cuomo and Max Baucus to know what New York state and the Senate have in mind.

Dana Milbank notes that the bully-pulpit isn't enough for Obama on this issue. So it's no surprise that Obama's poll approval numbers are finally starting to drop.

AIG to Get Government Bailout

From The International Herald Tribune:

Fed to give AIG $85 billion loan and take 80% stake
By Michael J. De La Merced and Eric Dash
Published: September 17, 2008

In an extraordinary turn, the Federal Reserve agreed Tuesday night to take a nearly 80 percent stake in the troubled giant insurance company, the American International Group, in exchange for an $85 billion loan.

The Federal Reserve and Goldman Sachs and JPMorgan Chase had been trying to arrange a $75 billion loan for the company to stave off the financial crisis caused by complex debt securities and credit default swaps. The Federal Reserve stepped in after it became clear Tuesday afternoon that the banking consortium would not be able to complete the deal.

Without the help, AIG was expected to be forced to file for bankruptcy protection.

The need for the loans became necessary after the major credit ratings agencies downgraded AIG late Monday, a move that likely to have forced the company to turn over billions of dollars in collateral to its derivatives trading partners worsening its financial health.

Until this week, it would have been unthinkable for the Federal Reserve to bail out an insurance company, and AIG's request for help from the Fed of just a few days ago was rebuffed.

Rest of article at link above.


Riddle me this, MOA readers..

Why isn't this called WELFARE?

Wall Street Collapse?

A series of articles in the NYTimes indicate very bad times on Wall Street.

In Frantic Day, Wall Street Banks Teeter

By ANDREW ROSS SORKIN, BEN WHITE and JENNY ANDERSON
Published: September 14, 2008

In one of the most extraordinary days in Wall Street’s history, Merrill Lynch is near an 11th-hour deal with Bank of America to avert a deepening financial crisis while another storied securities firm, Lehman Brothers, hurtled toward liquidation, according to people briefed on the deal.

The dramatic turn of events was prompted by the cataclysm of losses that has shaken the American financial industry over the last 14 months.

The moves came after a weekend of frantic negotiations between federal officials and Wall Street executives over how to avert a downward spiral in the markets. Questions still remain about how the market will react and whether other firms may still falter like A.I.G., the large insurer, and Washington Mutual, both of whose stocks fell precipitously last week.

Coming just a week after the government took control of mortgage lenders Fannie Mae and Freddie Mac, the magnitude of the industry’s reshaping is staggering: two of the most powerful firms on Wall Street, Merrill Lynch and Lehman, will disappear.

The weekend’s once unthinkable outcome came after a series of emergency meetings at the Federal Reserve building in downtown Manhattan in which the fate of Lehman hung in the balance. In the meeting Federal Reserve officials and the leaders of major financial institutions were trying to complete a plan to rescue the stricken investment bank.

But as the weekend unfolded, Barclays and Bank of America, which had both considered buying all or part of Lehman, decided that they could not reach a deal without financial support from the federal government or other banks.

As a result, people briefed on the matter said late Sunday that Lehman Brothers would file for bankruptcy protection, in the largest failure of an investment bank since the collapse of Drexel Burnham Lambert 18 years ago.

Other articles:
Wall St. Goliath Teeters Amid Fear of Wider Crisis

Bank of America in Talks to Acquire Merrill Lynch

Rush Is On to Prevent A.I.G. From Failing

Just one of these stories would be enough to make you stand up and go WTF....the combination of them all..........

This country is in SERIOUS FINANCIAL TROUBLE.