Truthout: A.I.G. Using "Suicide Strategy" to Push Bonuses

[marmar]

A.I.G. Using "Suicide Strategy" to Push Bonuses
Tuesday 17 March 2009

by: Matt Renner, t r u t h o u t | Report


Washington, DC - As nationwide populist anger boils after the news that hundreds of millions of taxpayer dollars may be given to employees of the insurance-giant-turned-government-liability American Insurance Group (A.I.G.), President Obama promised to try to block what he described as an "outrage" Monday, but a group of former regulators said the administration must get even tougher with A.I.G.

"(A.I.G.) is a corporation that finds itself in financial distress due to recklessness and greed. Under these circumstances, it's hard to understand how derivative traders at A.I.G. warranted any bonuses, much less $165 million in extra pay. I mean, how do they justify this outrage to the taxpayers who are keeping the company afloat?" Obama said, adding, "I've asked Secretary Geithner to use that leverage and pursue every single legal avenue to block these bonuses and make the American taxpayers whole."

$165 million is set to be paid to executives of A.I.G.'s financial products division, the same people who made unregulated bets against the failure of major financial institutions and other companies. Losses on these bets are a major reason the company is failing, reporting a record-setting $60 billion loss last quarter.

Economics and law Professor William K. Black, a famous figure in the savings and loan crisis of the 1980s for his role as a senior regulator who fingered the then speaker of the House and "The Keating Five" for doing favors for bankers, has been a vocal critic of the bailout programs, which began during the Bush administration.

In an interview with Truthout, Professor Black said that A.I.G. is using a "suicide strategy" to hold the government hostage and keep the bailout funds flowing. ........(more)

The complete piece is at: http://www.truthout.org/031709J

[notesdev]

1. It's called extortion

and a lot of people should be locked up for it, anyone at AIG who contributed to the making of these threats.

[SoCalDem]

2. Isn't that the truth..

We f'ed it up SO bad, that WE are the only ones who know where all the bombs are... Give us all your money, or we'll just let them explode.. :grr: