AIG Lists Banks it Paid W/ YOUR MONEY!!
source: http://www.nytimes.com/2009/03/16/business/16rescue.html?th&emc=th
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- smallgod
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Big foreign banks also received large sums from the rescue, including Société Générale of France and Deutsche Bank of Germany, which each received nearly $12 billion; Barclays of Britain ($8.5 billion); and UBS of Switzerland ($5 billion).
A.I.G. also named the 20 largest states, starting with California, that stood to lose billions last fall because A.I.G. was holding money they had raised with bond sales.
In total, A.I.G. named nearly 80 companies and municipalities that benefited most from the Fed rescue, though many more that received smaller payments were left out.
The list, long sought by lawmakers, was released a day after the disclosure that A.I.G. was paying out hundreds of millions of dollars in bonuses to executives at the A.I.G. division where the company’s crisis originated. That drew anger from Democratic and Republican lawmakers alike on Sunday and left the Obama administration scrambling to distance itself from A.I.G.
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More at link...
What do you think should be done about AIG and these banks taking tax dollars to prop themselves up while the people of the world can't afford to buy food?
(Picture from the Treasury department hearing, courtesy punditkitchen.com)
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cantspascua
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The difference now between the haves and have nots is that the haves are every major financial institution here and abroad that has our money , stocks, 401k, dividends, etc. and the have nots which is our U.S. government and people.
- 3 years ago
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cantspascua
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ras_menelik
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So I own this glasshouse?
January 2008 trading loss incident
Main article: January 2008 Société Générale trading loss incidentOn January 24, 2008, the bank announced that a single futures trader at the bank had fraudulently lost the bank 4.9 billion euros (an equivalent of 7.2 billion dollars), the largest such loss in history.[6][7] The company did not name the trader, but other sources identified him as Jérôme Kerviel, a relatively junior futures trader who allegedly orchestrated a series of bogus transactions that spiraled out of control amid turbulent markets in 2007 and early 2008.[8]
Partly due to the loss, that same day two credit rating agencies reduced the bank's long term debt ratings: from AA to AA- by Fitch; and from Aa1/B to Aa2/B- by Moody's (B and B- indicate the bank's financial strength ratings).[2][9]
Executives said the trader acted alone and that he may not have benefited directly from the fraudulent deals. The bank announced it will be immediately seeking 5.5 billion euros in financing. On the eve and afternoon of January 25, 2008, Police raided the Paris headquarters of Société Générale and Kerviel's apartment in the western suburb of Neuilly, to seize his computer files.[10] French presidential aide Raymond Soubie stated that Kerviel dealt with $73.3 billion (more than the bank's market capitalization of $52.6 billion). Three union officials of Société Générale employees said Kerviel had family problems.[11] On January 26, 2008, the Paris prosecutors' office stated that Jerome Kerviel, 31, in Paris, "is not on the run. He will be questioned at the appropriate time, as soon as the police have analysed documents provided by Société Générale."[12] Kerviel was placed under custody but he can be detained for 24 hours (under French law, with 24 hour extension upon prosecutors' request). Spiegel-Online stated that he may have lost 2.8 billion dollars on 140,000 contracts earlier negotiated due to DAX falling 600 points.[13]
The alleged fraud was much larger than the transactions by Nick Leeson that brought down Barings Bank.
[edit] February 2008
Société Générale SA says it had a net loss in the fourth quarter of 2007 after the French bank took a €4.9 billion ($7.18 billion) hit closing the unauthorized trading positions of Jérôme Kerviel.[14]
[edit] March 2009 - $11 billion bailout from United States taxpayers
On March 15, 2009, AIG disclosed that, among its counterparties, Société Générale was to date the largest recipient of both credit default swap (CDS) collateral postings ($4.1 bn) and CDS payments ($6.9 bn), paid in whole or part by U.S. taxpayers.[15]
- 3 years ago
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ras_menelik
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akamaial [removed]
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ras_menelik:
Yep, it sure does frost your cajones, huh?
- 3 years ago
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akamaial [removed]
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akamaial [removed]
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What can l really add to this other that since the beginning l've been against this bailout in every fashion for many of the very same reasons stated here.
- 3 years ago
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akamaial [removed]
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ddhboy
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I think you guys are forgetting that AIG is an INSURANCE COMPANY. Part of their function is to insure AAA mortgages, many of which ended in foreclosure. The problem with AIG is that they owed more money than they had capital, and now thanks to the government they now have enough capital to partially repay their debts.
Now, basically the bailout will NEVER end until the governments of the world re secure every bank, insurance company's and investor's investment, hell maybe even the sub prime mortgage owners who defaulted, and that is why all this is fruitless.
- 3 years ago
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ddhboy
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cybexg
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ddhboy:
That isn't correct. What happened was that AIG had such size and power and rating that it was able to policies and cross security devices without sufficient coverage. Once their rating (well, everyone's rating) began to fall, they were unable to create new instruments while systematically being unable to honor request for sufficient coverage for the existing devices.
that's the nutshell version.
- 3 years ago
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cybexg
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smallgod
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There seems to be a growing separation between the 'untouchable' upper class of individuals involved in the business of 'making money out of nothing' and normal people who bust their asses to make a day's pay. Our families have boycotted all of these institutions. What else can we do? This is spiraling way out of control!
Makes you want to make napalm...
- 3 years ago
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smallgod
