Payments were made as follows:
- $22.4 billion to satisfy CDS collateral postings by AIG Financial Products;
- $27.1 billion in payments made from Maiden Lane III To AIG FP counterparties;
- $43.7 billion in direct support to AIG securities lending counterparties;
US Taxpayers will be thrilled to discover that of the $93.2 billion of their money spent to prevent financial collapse, over 70% went to bail out non-domestic banks.
Another $12.1 billion was spent to bailout out municipalities under Guaranteed Investment Agreements, the main beneficiaries being California and Virginia, both receiving just north of $1 billion.
Also, can someone please explain why Ken Griffen's Citadel and Paloma Securities, both private hedge funds, have received $200 million in taxpayer cash each?
In total, over $105 billion has been spent so far to bail out assorted entities that have been so far entangled in the AIG web.
Considering AIG's newfound understanding of the importance of upholding transparency regarding the use of public funds, the U.S. public now fully expects to see a list of all bonus recipients since the company's collapse on September 16, 2008.
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5 comments:
so when they use the word 'collateral' posting for CDSs, does this mean that this money gets returned to AIG if the underlying does have a credit event?
the U.S. Government spends 3 trillion a year (normally). What's another 100 billion or so here or there. Just further proof that the average U.S. citizen is no more savvy than the average Indonesian peasant.
AIG is laundering money?
The collateral obligations that AIG paid off were legal requirements. Had they not made the payments, they would have been in immediate default and would have been liable to litigation. Do you really want AIG bailout money to go to lawyers instead? There is no doubt their counterparties would have immediately pursued them. If AIG wasn't able to use the money to meet its business obligations, you might as well have saved all the bailout money and let AIG go under in the first place. Also, you seem to want AIG to only deal with US firms. Is that now part of "Buy America" as well?
phony insurance/ rigged contracts/ bonuses no matter what. welcome to the black hole. maybe a presidential order could fix these thieves?
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