This is bazaar and sick! It makes me realize that the deck is stacked hard against the common man. AIG was a reckless and aggressive company who put our entire financial system at risk with risky coverage on risky loans. They essentially insured what they assumed couldn’t go bad. When the housing market collapsed, AIG was left holding the bag, naked, with billions to pay and billions more still at risk.
NOW! The man with the most to gain from it’s recovery (Hank Greenberg) is floating a proposal that will have a greater impact on his personal wealth than anything he has done before.
GET THIS! Congress is listening!! Edolphus Towns met with Greenberg behind closed doors and Towns came out with a proposal later that day.
Representative Brad Sherman, a California Democrat on the House Financial Services Committee, said he “couldn’t imagine” that his committee would support a revised rescue.
“The effort is clear: Take more risks with U.S. taxpayer dollars,” Sherman said in an interview. “If there are profits to be made, they go to enormous bonuses for executives and big money for Greenberg. If there are losses, they’re borne by the people in my district and other districts.”
I am at a loss here. This company shouldn’t really exist. They are way under water. However, a fundraiser here, a donation there, a job there, and congress is fast to act! Sick!!
The company’s bailout includes a $60 billion Fed credit line, a Treasury Department investment of as much as $70 billion, and $52.5 billion to buy mortgage-linked assets. AIG owes more than $39 billion on the credit line as of last week, and has tapped the Treasury for more than $40 billion.