"Too big to fail"

[Archae]

They SHOULD have been left to fail. :grr:


Goldman reveals where bailout cash went

Goldman Sachs received a $12.9 billion payout from the government's bailout of AIG, which was at one time the world's largest insurance company.

By Karen Mracek and Thomas Beaumont, Des Moines Register

Goldman Sachs sent $4.3 billion in federal tax money to 32 entities, including many overseas banks, hedge funds and pensions, according to information made public Friday night.
Goldman Sachs disclosed the list of companies to the Senate Finance Committee after a threat of subpoena from Sen. Chuck Grassley, R-Ia.

Asked the significance of the list, Grassley said, "I hope it's as simple as taxpayers deserve to know what happened to their money."

He added, "We thought originally we were bailing out AIG. Then later on ... we learned that the money flowed through AIG to a few big banks, and now we know that the money went from these few big banks to dozens of financial institutions all around the world."

Grassley said he was reserving judgment on the appropriateness of U.S. taxpayer money ending up overseas until he learns more about the 32 entities.

http://tinyurl.com/2uyfmcw

[uncommon]

1. That's the thing - no business in the United States should have such a stronghold on its

arena that its failure causes more than a tiny ripple in the economy.

The fact that these banks were described as "too big to fail" is a pretty good indicator that we need MORE regulation, not less.

[girl gone mad]

2. Pre-privatization was the only right answer.

Put them into receivership, just like the FDIC does several times a week with the smaller banks. The board is out, the good assets are sold off, bondholders get haircuts and we're zombie-free.