UPDATE III: Still not fed-up with the Washington politician-New York banker cartel. Then read The Associated Press, 13 firms receiving federal bailout owe back taxes and the Washington Post, House GOP Report Details Countrywide's Efforts to Benefit VIPs.
The bonuses at AIG are just the tip of the iceberg. As The Deal Professor writes:"Washington is filled with outrage over the $165 million in bonuses given out by the American International Group. Yet, as I said in my post on Tuesday, “Seven Sad Truths About A.I.G.,” the real concern over the insurance giant should be about the $170 billion in government bailout money it received and and A.I.G.’s subsequent payments of tens of billions to a myriad of banks.
All of this appears to have been done without any attempt to bargain or otherwise obtain government recompense from these third-party banks. Congress should hold hearings to find out why this was done and if it was appropriate, instead of concentrating on the more minor compensation issue."
Clearly there are two sets of rules and regulations in life: those that apply to the Washington politician-New York banker cartel and those that apply to the rest of us.
Is it time to renew Operation Siege?
UPDATE II: FINALLY, after nearly six months of criticizing the bailout of AIG and other insolvent investment banks and non-depository financial institutions, people are starting to realize it was and is a con job, flim flam, gaffle, grift, hustle, scam, scheme, or swindle. Claim the world will collapse unless _____ (fill in the blank), and the purpose: save the big-wigs. Former Treasury Secretary Henery Paulson had become fabulously wealth working at Goldman Sachs.
Read the Washington Post, Wall Street's Dangerous Refusal to Learn and The New York Times, A.I.G. Bailout Priorities Are in Critics’ Cross Hair.
I SAY AGAIN: the AIG bailouts were an attempt to try and save well-connected investment banks, like Goldman Sacks. The AIG bailout never made sense, except if you understood that the money was meant to save Goldman Sachs. Since early on it has been clear that payments to AIG were just a cover to get money to Goldman Sachs. And when the original terms of the bailout proved too onerous, the terms were waived for another sweetheart deal.
Read The Big Picture, Backdoor Bailouts for Goldman Sachs? Also read The New York Times, A.I.G., Where Taxpayers’ Dollars Go to Die.
UPDATE: For months I've said, let the insolvent non-depository banks and other financial institutions fail. Others are beginning to realize that it would be the better solution. Read Time, The Case for Letting AIG Fail.
You also might want to reread my proposed solution to the economic mess.
Since September I've said that the AIG bailouts were an attempt to try and save well-connected investment banks, like Goldman Sacks, the former firm of former Treasury Secretary Paulson. The AIG bailout never made sense, except if you understood that the money was meant to save Goldman Sachs. Since early on it has been clear that payments to AIG were just a cover to get money to Goldman Sachs. And when the original terms of the bailout proved too onerous, the terms were waived for another sweetheart deal.
Others finally began to realize the same. Read The Big Picture, Backdoor Bailouts for Goldman Sachs? Also read The New York Times, A.I.G., Where Taxpayers’ Dollars Go to Die.
Well, the list of AIG payees was final released, and to date Goldman Sachs has received $12.9 billion, nearly twice as much any other American financial company.
The practice of engaging in financial transactions to conceal the identity, source, or destination of money is a crime called money laundering. But instead of investigations and criminal prosecutions, there will be more bonuses.
That's right, AIG laundered the money, so now it is time to split the AIG take on the deal, $165 million in bonuses.
Where is the outrage! Are taxpayer really such foobs?
Or have they had enough? Is it time again for Operation Siege?
Let me know.