Despite $143 Billion Bailout, AIG May Be Tottering Towards Collapse

Despite $143 Billion Bailout, AIG May Be Tottering Towards Collapse

industry.bnet.com

Despite a $143 billion federal rescue effort, American International Group seems to be tottering towards collapse. The giant insurer is quickly running through Federal Reserve lending and key executives are jumping ship, leaving some experts to wonder if bankruptcy might have been a better alternative.

(visit the link for the full news article)


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Burning so much money so fast has raised suspicions that AIG had already incurred billions of dollars in losses when the federal government extended it the $85 billion emergency line of credit. According to media accounts, AIG has not provided details of how it has spent the money

Let's see, $143,000,000,000 has been wasted on the company because they are too big to fail and they won't say how they spent the money?? What the hell is going on here. At least they still got their plush retreat.

Something tells me that they knew that this wouldn't work and this was just another scheme to fleece more money from the taxpayers.

I guess we will find out soon enough what happens when a company that is too big to fail....fails.


industry.bnet.com
(visit the link for the full news article)

Thanks for the link.

I guess most people don't get really mad at this sort of thing until it comes directly out of their checking accounts..it has already come out of their savings accounts (401k's/IRA's) but I guess that isn't enough yet.

On the other hand..what can you say, its not like the government listens to its people at all.

Guess we shall see how much worse things will get after the election, seems like everything has been in a holding pattern.

That's because of the ongoing Derivatives market. You'd think the financial sector would have stopped or been forced to stop selling the useless things after the bailout. Hasn't happened, you can still buy em and AIG is there for ya insuring the risk. These guys will never learn at this moment in history. At least not until the whole house of cards truly collapses.

PG

Addiction to greed, really. Until these folks get arrested for something - they'll keep going. Laughing at the govt who bails them out. Like an alcoholic who walks in on a buy one get 10 free day at the local liquor store.

It would be fantastic for AIG to fail. Why? Well, shows that we shouldn't do bail-outs and let free market economy handle the situation. And, it keeps companies and industries from wanting a bailout to help them out of their poor business practices.

GM made poor cars and had bad sales and now tried to get $25 billion in their own bailout. If they made better cars and people bought them, nobody would need a bailout. If they didn't dump so much into R&D and unions and all that - same thing, no bailout. (unions aren't entirely bad - they just seem to have gravely hurt the US auto industry)

This economy needs a shakeout and so does government. Maybe failing AIG and friends needs to happen.

Color me shocked.
/sarcasm

Where did the money go? Hunting trips, getting pedicures, another vacation, paying bonuses...all that on top of their derivatives exposure and such mundane operating expenditures like keeping the lights turned on adds up to a hell of a lot more than the $123B they've sucked from the American taxpayer.

Let the turds collapse. Please. Let 'em fall and fall hard.

Well lets face it the parasites in office have been pillaging and raping the US for the last 8 years and to qoute Bush they have been doing it in plain sight so its no suprise is it.

What really pisses me off is all the families who are losing their homes yet these scumbags are getting away with robbing billions from the people. Many Americans sneer at the French but at least they dealt with who was putting the hurt on them.

Originally posted by pizzaguy
That's because of the ongoing Derivatives market. You'd think the financial sector would have stopped or been forced to stop selling the useless things after the bailout. Hasn't happened, you can still buy em and AIG is there for ya insuring the risk. These guys will never learn at this moment in history. At least not until the whole house of cards truly collapses.

PG

Flagged and starred.

Incredible.

We should have all raised holy hell when everything tanked right after all the bailouts were approved - after they told us that would happen only if the bailouts weren't approved.

I have a simple question..

If it's legal for me to shoot and kill someone taking my property, why can't I shoot these people ?

Seriously. This is the first time I've ever thought anything like that but reading this and seeing the way they have robbed people and are causing so much devastation..why in the hell can I not shoot to kill the men who are robbing from me and millions of others ?

It's not like I actually want to or would,but if someone else were to and the decision to prosecute them came under my authority... well, they would be free-birds within 10 minutes..

B : "You killed 10 AIG execs?
AIG Killer: yes.. they were stealing and causing millions of people to starve, kill, commit suicide and much much more"
B : righto.. you're free to go.
AIG Killer : -- exits building --

b

lol @ too big to fail.

I think in their minds they're thinking, "They're too big to fall."

more like they're so big they just appear to be falling slowly...

... just wait for the impact, I can't imagine the feeling of dread they must feel at the moment, knowing that it's collapsing, and not a thing can stop it... and they have to answer for it.


You know that feeling you get when you're watching a train wreck about to happen?...

... yeah.

Originally posted by johnsky
You know that feeling you get when you're watching a train wreck about to happen?...

... yeah.

AIG is the most slow-motion, delayed trainwreck in the history of trainwrecks. It's just inching along with bits falling off here and there, and the brick wall is still a mile away.
Meanwhile the American taxpayer is jogging alongside attempting to superglue the missing parts back on, not noticing that the conductor is picking his pocket.

*sigh*

Originally posted by Bspiracy

Seriously. This is the first time I've ever thought anything like that but reading this and seeing the way they have robbed people and are causing so much devastation..why in the hell can I not shoot to kill the men who are robbing from me and millions of others ?

Let's see . . . No, you can't do that. But you can sentence them to life in prison.

Judge says loss in AIG scheme exceeds $500 million
By JOHN CHRISTOFFERSEN – 1 day ago

NEW HAVEN, Conn. (AP) — A federal judge has ruled that shareholders of American International Group Inc. lost more than $500 million as a result of a scheme to manipulate the financial statements of the world's largest insurance company.

The ruling Friday by Judge Christopher Droney means five former insurance executives convicted of the scheme could face up to life in prison under advisory sentencing guidelines.

ap.google.com...

That's why the bailout money wasn't enough to save AIG, because good part of it went to hot shot lawyers capable of changing the possible life in prison sentence to one week of community service.