Why hasn't Obama and Geithner simply nationalized AIG, kicked out its top dog crooks

[brentspeak]

show everyone else who's responsible for their mess the door, and ushered in a SWAT-team of competent people to look over AIG's books and run things? Why are they playing games?

[NewJeffCT]

1. Doesn't the government already own like 80%?

shouldn't they be able to do what they want?

[gristy]

2. Exactly. They run around like scared little people.

Hey, Mr. President! You're in charge! Act like it!

[ChairmanAgnostic]

6. You be da man? uh uh.

Leave that to the GOP.

AIG is a major faux pas, and getting worse. It will require major sweeps. Like everyone in that financial instruments office, after we tax their bonuses at 200% or more. Then, we indict, and imprison the thieves.

[BlooInBloo]

3. Because it's part of Obama's betrayal master-plan to TOY with us...

Rather like a cat plays with a mouse... and then.... CHOMP!!!

Clearly we're doomed.

[Uzybone]

4. I think thats all but done

a govt appointee now runs AIG and we already own 80% of the company.

These shenanigans that we are all up in arms about were signed away in 2008.

[brentspeak]

7. We don't own enough of it if AIG's top brass are still pi$$ing away taxpayer billions on bonuses

[polichick]

5. Good question - this is crazy.

[tbyg52]

8. Because the corporations actually run this country.

Apparently whether or not they are bankrupt....

[Odin2005]

9. Because if he does any nationalization overtly the DINOs and pundits will scream bloody murder.

Basically I think he's stuck between a rock and a hard place. He and Geithner knows nationalization must happen but they are trying to figure out how without inciting a DINO revolt and send the MSM media screaming EVIL SOCIALIST OBAMA IS DESTROYING AMERICA, OMG!!11!!111

[Naturyl]

11. Yep. What you said.

It's politics.

[Yavin4]

13. Exactly

It's the conservative Dems and the pundits who will scream the loudest.

[moundsview]

10. And just where is this SWAT-team of competent people

standing by right now? Are we to believe that the government has armies of experts sitting around just waiting to leap into action?

[Zynx]

12. We still would be responsible for its obligations.

Those include contracts.

[treestar]

14. Where would he get the statutory power to do that?

How does the law allow that?

[ljm2002]

15. Oh for goodness' sake...

...the government -- our government -- has stepped in and nationalized banks in the past, does so now, and will do so in the future. They call it putting them into receivership. They take them over, fire the management, sell off the bad debts, make good on the FDIC-insured deposits, bring them back to solvency and then sell them back into the private sector. This happened on a large scale during FDR's New Deal. More recently, during the Savings and Loan scandal, the government put numerous large institutions into receivership. There are indeed laws that address these contingencies, and such laws could be invoked in the present situation as well.

At this point, we the taxpayers already own 80% of AIG. The difference now is, our leaders are either too timid or too corrupt (take your pick) to step in and put their asses into receivership and take control of the situation. Instead, the creditors who made bad bets are being paid off to the tune of 100%, the yahoos who created the situation are being paid their bonuses, and we are being left holding the bag.

It is infuriating to have people shrug and accept that the government "has no power" in this situation. The government most certainly does have the power to do more, it is just choosing not to do so. Our leaders are also choosing not to have any public discussion of why they are making this choice -- another case of lack of transparency. Instead, they are pretending that they have no choice.

Since we, the taxpayers, are the ones making good on these bad bets, I'd like it if someone were looking for our interests in this mess. And as I mentioned in another thread, in about a month or so IMO, President Obama is going to own it. He'd be smart to take control, rather than let Geithner et al piss away all the good will and political capital that he started out with, not to mention breathing life into the moribund Republican party by letting them take on the populist mantle.

[leftstreet]

16. All ur bankz are belong to us!

Just say NO to receivership > toxic asset cleaning > returning healthy banks to the Predator Class.

Actually Nationalize the suckers!

Volks Banks!