Taxpayers likely to lose $132 billion from AIG bailout via TARP

[brentspeak]

This was money funneled by the Bush/Obama people to the pockets of Goldman Sachs, Chase, etc.

AIG repayment prospects fade

http://money.cnn.com/2010/06/04/news/companies/aig_payback/

By David Goldman, staff writerJune 4, 2010: 4:53 PM ET

NEW YORK (CNNMoney.com) -- Taxpayers have lent AIG $132.6 billion, but getting that money back is looking less likely.

The sale of AIG's Asian life insurance unit for more than $35 billion would have helped a lot, but the deal http://money.cnn.com/2010/06/03/news/companies/aig_prudential_aia/index.htm?postversion=2010060309">went bust this week when the buyer, Prudential PLC, sought a lower price.

Now the troubled insurer is essentially back to square one with its repayment strategy -- though AIG Chief Executive Robert Benmosche remains upbeat about the options regarding AIA, and maintains that AIG will pay back its loans in full.

[Mopar151]

1. This has always been the big stinker of the bailouts

In more ways than one. And the idiots who's malfeasance caused this mess are still walking around loose.

[xchrom]

2. Recommend

[avaistheone1]

3. Gee...instead that could have funded single payer national health insurance

for each and every American for two years, and two million new jobs in health care could have been created.










We have been totally ripped off by AIG and the Wall Street banks.



:grr:

[chill_wind]

4. Just remember, there was no malfeasance.

And AIG execs were certainly pleased with that decision. Pleased, they said, but not surprised.

Case Said to Conclude Against Head of A.I.G. Unit
May 24, 2010, 2:45 am

Federal prosecutors investigating the events leading up to the collapse of the American International Group in 2008 will not bring charges against Joseph Cassano, the chief executive of the unit that insured mortgage-related securities with calamitous results, according to two people briefed on the matter, Gretchen Morgenson reports in The New York Times.

Mr. Cassano and other executives at A.I.G.’s Financial Products unit, which had insured almost $80 billion in mortgage-related securities, came under scrutiny by the Department of Justice after the insurer failed in September 2008. Investigators were examining whether Mr. Cassano misled investors when he stated in December 2007 that the company’s obligations on the mortgage securities it backed were unlikely to produce losses.

The Federal Reserve Bank of New York and the United States Treasury rescued A.I.G. with a taxpayer backstop totaling $180 billion.

The people briefed on the decision not to bring charges spoke on condition of anonymity because they were not authorized to speak publicly on the matter.

F. Joseph Warin, Mr. Cassano’s lawyer, said in a statement: “Although a two-year, intense investigation is tough for anyone, the results are wholly appropriate in light of our client’s factual innocence.”

Lawyers for another A.I.G. executive who was a target of the investigation, Andrew Forster, said in a statement that their client had been cleared as well. “We were very pleased but not surprised to hear,” said the lawyers, David M. Brodsky and Richard D. Owens, of Latham & Watkins, “that they were dropping the criminal investigation of our client Andrew Forster,” adding, “In the end, the facts were stronger than the emotions surrounding A.I.G.’s problems.”

http://dealbook.blogs.nytimes.com/2010/05/24/case-said-to-conclude-against-head-of-a-i-g-unit/?src=busln

[flyarm]

5. why I beee..I thought I have seen posts and posts here at Du telling we mere mortals that we got

most our money back..in record times...silly me..for reading the crap.

[cornermouse]

6. I know.

I saw that article too and thought about posting it but decided it wouldn't do any good trying to post it here.

[quakerboy]

7. Ah... it is starts lookin too hairy

I'm sure the Fed will be happy to secretly lend them the cash to pay the government back. Unless its more helpful to Goldman Sachs not to do so.

[activa8tr]

8. Didn't this happen under Bush's administration? Why is this

being linked to the current President?

Just another 132 billion Bush and his folks screwed us with.

[Jennicut]

9. I am not sure on the timeline...I thought Geithner agreed with it during the transition?

Paulson was Treasury Secretary at the time, however.