AIG Ignores Fed Regulator Rules

AIG Ignores Fed Regulator Rules

www.bloomberg.com

AIG, the insurer dismantling itself to repay U.S. loans, used $2.4 billion from asset sales to shore up a property-casualty unit instead of paying down its government credit line.

Under the terms of a credit agreement signed days after the New York Fed first rescued AIG with an $85 billion credit line in September, AIG is required to use net cash proceeds from asset sales to repay its loan within five days after the close of a transaction. Net proceeds exclude funds from regulated insurance subsidiaries that could be downgraded if the capital were removed. AIG has to seek permission from r

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So, AIG conducts criminal behavior which causes them to go bankrupt. The NY Fed bails them out and they conduct more criminal behavior. So, the US Fed bails them out with yet more money and they continue to conduct more criminal behavior. You can't keep rewarding criminal behavior and expect them to stop.

They give the CEOs who caused the business to fail bonuses to the tune of $100 million after we bailed them out with over $255 Billion dollars ($85 billion in extended credit and $170 billion in free money).

They are now pocketing the money they are making off the liquidation of assets and funneling it to subsidiaries or partner companies rather than paying back their debts to the NY Fed and the US Fed!

This just goes to show how AIG is above the law, not accountable to anyone, makes public officials look impotent, and shows how little say American tax payers have in how their money is used to profit the already rich.

If we let this continue without bringing the fury of the American People and the full extent of the law upon them, then this is going to set a dangerous precedent for GM and every other company we bailed out.

www.bloomberg.com
(visit the link for the full news article)

Didn't I read here on ATS a few months ago that AIG was bailed out mainly because they are in charge of the retirement accounts of congress and past presidents?

I say we go retro on them. There must be a company somewhere that still makes quality guillotines. I figure you publicly lop a few heads and things will sort out quite handily. Hey, don't blame me. It worked for the French.