AIG bonuses: just a cover for tens of billions to their counterparties?

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That's what disgraced former New York governor Eliot Spitzer thinks (link):

Everybody is rushing to condemn AIG's bonuses, but this simple scandal is obscuring the real disgrace at the insurance giant: Why are AIG's counterparties getting paid back in full, to the tune of tens of billions of taxpayer dollars?

For the answer to this question, we need to go back to the very first decision to bail out AIG, made, we are told, by then-Treasury Secretary Henry Paulson, then-New York Fed official Timothy Geithner, Goldman Sachs CEO Lloyd Blankfein, and Fed Chairman Ben Bernanke last fall. Post-Lehman's collapse, they feared a systemic failure could be triggered by AIG's inability to pay the counterparties to all the sophisticated instruments AIG had sold. And who were AIG's trading partners? No shock here: Goldman, Bank of America, Merrill Lynch, UBS, JPMorgan Chase, Morgan Stanley, Deutsche Bank, Barclays, and on it goes. So now we know for sure what we already surmised: The AIG bailout has been a way to hide an enormous second round of cash to the same group that had received TARP money already...

Comments

this is only a show to keep your eyes off of the real game. the new world order is here soon it will come up with what is called the bonuses dollar. this tool will be handed out by the billions the reason why the one world guys need the U.S. dollar to collapse after that evil the big boys can dissappear all freedoms and laws and people for one world reasons.

Lou Dobbs has been saying the samething for almost a year now. You would think that somebody in the MSM would be capable of explaining this to the general public. I used to work in the derivative trading departments of some of these major ZOMBIE banks. They have all been a bunch of Mckinsey and Co worshiping trainwrecks waiting to happen. They are all just like Enron and Credit Swiss, part of McKinsey Globalist Cult. Their IT departments are now a much of pompous MBA idiots riding herd on now increasingly low-grade H1-B indentured servants. Sorry but the correct thing to do would be for the Government to appoint Walter Issacson, who managed the S & L Bailout, to take control of the Zombies, break them back up into smaller banks that are not "too big to fail" and re-employee the tens of thousands of competent IT and other professionals the Zombies got rid of over the last decade. Paulson, Bernacke and Geithner are all dip-sh*t clowns. The fact that Obama can not see this tells you that he will prove to be an even less competent executive than Dubya. Heaven help us. There should be a constitutional amendment that nobody can President unless they held an elected executive position ie: Governor(Reagan,FDR,Clinton), Mayor(TR), County Executive(Truman), or a military command (Truman, Eisenhower,TR). Dubya's stint as Governor was a joke. Dubya could no finish his stint in the TANG. Obama has absolutely no executive experience.

And he has no knowledge of economics. We are witnessing the fruit borne from ethnic studies, where people like BHO are a full standard deviation below the rest of us in IQ.

How does it feel to be ignored Fred? Keep screaming. No one is listening you loon.