Only the Little People Pay Losses

OK, got it cracked. Don’t be a shareholder, or a preferred shareholder, or even a creditor or a policyholder. Just be a counterparty to a sleazy derivatives bucket shop — AIG Financial Products (AIG), to pick a name at random — and your chips, with applicable profits, will be returned no questions asked. 

The bailout is not of AIG, or its shareholders, or even its policyholders; the principal beneficiaries of this action are the members of the International Swaps and Derivatives Association [ISDA] including, without limitation, Global MegaBankDrekk NA and its wholly-owned subsidiaries. 

The Surviving Crooks & Liars Consortium won, without firing a shot, or spending a dime.

The Federal Reserve Board on Tuesday, with the full support of the Treasury Department, authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group ...The secured loan has terms and conditions designed to protect the interests of the U.S. government and taxpayers.

The Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth, and materially weaker economic performance.  

Federal Reserve Board
Press release Sep. 16 2008

AIG Statement on Announcement by Federal Reserve Board
Press release Sep. 16 2008

 

Fed to Loan AIG $85 Billion in Rescue

by Edmund L. Andrews

The New York Times Sep. 16 2008

US Plans Rescue of AIG to Halt Crisis

By Matthew Karnitschnig, Deborah Solomon and Liam Pleven

The Wall Street Journal  Sep. 16 2008

AIG Gets Up to $85 Billion Fed Loan; Cedes Control

by Craig Torres and Hugh Son

Bloomberg Sep. 16 2008

 

US to take control of AIG

By Francesco Guerrera, Aline van Duyn and Krishna Guha

The Financial Times Sep. 16 2008

AIG gets Fed rescue in form of $85 billion loan

By Alistair Barr & Steve Goldstein

MarketWatch Sep. 16 2008

Comments

[RCK]

AIG BAILOUT IS THE BEST SOLUTION. There is no alternatives. Now there is time to find out in an orderly fashion, what happened and punish the white collar crooks, if you can. The real culprits are those who enticed greedy home-buyers to offer loans. The speculators are greatly responsible for this act also. But they did every thing in a legal way. You cannot catch them. If AIG has to go under, it will but in a orderly fashion, without disrupting the global economy much. Don't bet yet on the ripple effect.

2008 Sep 17 05:06 AM

[notsosmart]

nobody will go to jail.the crooks are well connected.average dumb-dumb american will pick up the tab.wow-all this socialism during a conservative administration.LOL

2008 Sep 17 11:00 AM