AIG divulges where the bail-out money went.

[JohnWxy]

http://www.marketwatch.com/news/story/AIG-details-105-billion-payouts/story.aspx?guid=%7B74DD6FC0%2DD2D8%2D4925%2D8B84%2DF8E4BEBEEADB%7D

Most of the leading U.S. and European banks were represented on the list of recipients of AIG payouts

Payments to municipalities totaled another $12.1 billion.

AIG said that between Sept. 16 and Dec. 31, it paid out $22.4 billion in collateral related to credit default swaps, or CDS. Such swaps are essentially insurance policies on a company's debt in case it were to default.

Another $27.1 billion went for payouts made to cancel some CDS contracts.

The remainder of the $173 billion of taxpayer money that AIG has received has been used to repay debt, boost capital levels at some of its units and fund vehicles created to wind down its derivatives contracts


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AIG'sfull disclosure here:
http://www.aig.com/aigweb/internet/en/files/Counterparties_tcm385-153017.pdf

some excerpts (with some notes from me_JW):

"Using funds from the emergency loan, financial counterparties listed on Attachment A (all attachments are posted online at http://www.aig.com/Related-Resources_385_136430.html ) received a total of $22.4 billion in collateral relating to CDS transactions from AIGFP between September 16, 2008 and December 31, 2008. This amount represents funds provided to such counterparties after the date on which AIG began receiving government assistance. The counterparties received additional collateral from AIG prior to September 16, 2008.

On November 10, 2008, AIG and the FRBNY established Maiden Lane III, a financing entity, to purchase the securities underlying certain CDS contracts from the counterparties to such contracts, allowing the cancellation of the contracts. Attachment B lists payments made by Maiden Lane III to such counterparties.

Maiden Lane III Payments Made to Counterparties $27.1 Billion. Maiden Lane III Payments Made to AIGFP (AIG Financial Products)$2.5 billion.


Municipalities in the states listed on Attachment C received a total of $12.1 billion from AIGFP between September 16, 2008 and December 31, 2008 in satisfaction of Guaranteed Investment Agreement (GIA) obligations. GIAs are structured investments with a guaranteed rate of return. Municipalities typically use GIAs to invest the proceeds from bond issuances until the funds are needed.


Public aid was also used to satisfy obligations to financial counterparties related to AIG’s securities lending operations. Securities lending counterparties listed on Attachment D received $43.7 billion from September 18, 2008 to December 31, 2008."


Okay, to summarize:

Collateral Postings to counterparties (under CDS agreements) (Attach A.) $22,400,000,000
Maiden Lane III purchase the securities underlying certain CDS contracts (Attach B.) $27,100,000,000
Payments to municipalities in satisfaction of GIA obligations(Attach C.): $12,100,000,000
Satisfy Obligations to Securities lending counterparties(Attach D.): : $43,700,000,000

total of above: $105,300,000,000

total bail-out funds received: $173,000,000,000

remainder: $67,700,000,000
Payments to AIGFP (attach B) $2,500,000,000
total: $70,200,000,000

"AIG has used the balance of the public aid it received ($70,200,000,000_JW) during that time period for other purposes, including the funding of Maiden Lane II and III, debt repayment and capital support for some of its businesses." (i.e. to shore up it's balance sheet and pay bonuses._JW)


(Reuters) - Goldman Sachs Group Inc and a parade of European banks were the major beneficiaries of $93 billion in payments from AIG

[jimshoes]

1. I guess the big question should be

why did my taxpayer money have to pay off these gambling debts? And is tar and feathers too good for these thieves?

[JohnWxy]

2. Only because these shmucks have us over a very big barrel.

[OHdem10]

3. Do you just love the fact that a huge portion of taxpayers' money

went to European Countries???