View Full Version : You Ever Wonder WHY?
BMT (RIP)
02-26-2009, 14:16
You ever wonder why AIG keep's getting Bailed out??
I don't know if this is true but sure might be worth checking.
Remember when this economic crisis hit and Congress let
Bear Sterns go under and pushed a bunch of forced marriages
between banks, etc.?
Then they bailed out AIG. At the time, I thought, "That's strange.
What does an insurance company have to do with this crisis?"
I think I just found the answer. Among other things,
AIG INSURES THE PENSION TRUST OF THE UNITED STATES CONGRESS!!
No wonder they got bailed out right away!
"To hell with the people, let's protect our future", said all our
Senators and Congressmen. Nice to see where their loyalties lie!
BMT
Red Flag 1
02-26-2009, 14:36
You ever wonder why AIG keep's getting Bailed out??
I don't know if this is true but sure might be worth checking.
Remember when this economic crisis hit and Congress let
Bear Sterns go under and pushed a bunch of forced marriages
between banks, etc.?
Then they bailed out AIG. At the time, I thought, "That's strange.
What does an insurance company have to do with this crisis?"
I think I just found the answer. Among other things,
AIG INSURES THE PENSION TRUST OF THE UNITED STATES CONGRESS!!
No wonder they got bailed out right away!
"To hell with the people, let's protect our future", said all our
Senators and Congressmen. Nice to see where their loyalties lie!
BMT
I am waiting for our" great" legislative branch of the federal government to begin wearing togas to "work".:mad:
That can be taken two ways......and both fit.
:munchin
RF 1
You ever wonder why AIG keep's getting Bailed out??
I don't know if this is true but sure might be worth checking.
Remember when this economic crisis hit and Congress let
Bear Sterns go under and pushed a bunch of forced marriages
between banks, etc.?
Then they bailed out AIG. At the time, I thought, "That's strange.
What does an insurance company have to do with this crisis?"
I think I just found the answer. Among other things,
AIG INSURES THE PENSION TRUST OF THE UNITED STATES CONGRESS!!
No wonder they got bailed out right away!
"To hell with the people, let's protect our future", said all our
Senators and Congressmen. Nice to see where their loyalties lie!
BMT
Sir, having spent many years working for one on the "bailed out" financials, it is no surprise. The insurance companies spend BIG $$$ on making sure that "their" products are forefront.
It is truly sad to me that Our Own government has taken a bend-over and paddle...I know because my job at the financial was to plan lavish events put on by said "insurance companies," for certain employees. :eek:
Holly
It still has a long way to go. AIG insured a great many securities - bonds, for example - through credit default swaps (CDS). There are counterparties around the world. But it seems the U.S. Treasury is going to backstop these. So, the U.S. taxpayer will protect investors in other countries from loss. Potentially, as much as $300 billion in losses.
LINK (http://www.bloomberg.com/apps/news?pid=20601087&sid=aBoViRlcrDGc&refer=home)
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AIG Rescue May Include Credit-Default Swap Backstop (Update1)
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By Hugh Son and Zachary R. Mider
Feb. 26 (Bloomberg) -- American International Group Inc. may get a backstop from the U.S. to protect against further losses on credit-default swaps, according to a person familiar with the matter.
The federal guarantees may be included in New York-based AIG’s restructured bailout, which the company plans to disclose next week with fourth-quarter results, according to the person, who declined to be identified because the talks are private.
Regulators who saved AIG in September feared that a collapse of the insurer, which sold swaps to banks including Goldman Sachs Group Inc., would spread losses throughout the global financial system. In November the U.S. committed $30 billion to retire some of the contracts tied to subprime mortgages, while not addressing other swaps tied to corporate loans and European debt.
“Counterparties around the world continue to have significant exposure to AIG, and market conditions continue to be fragile and sensitive to the potential disorderly failure of AIG,” the Federal Reserve said in a report in November.
AIG provided protection on more than $300 billion of assets through credit derivatives as of Sept. 30. Credit-default swaps pay the buyer face value on their debt holdings in exchange for the underlying securities if the borrower fails to meet its obligations. It wasn’t immediately clear how many of the swaps would be backed by the U.S., and talks are continuing, the person said.
AIG has posted four straight quarterly losses on swaps tied to U.S. home loans.
Michelle Smith, a spokesman for the Federal Reserve, declined to comment as did the Treasury’s Isaac Baker and Joseph Norton of AIG.
To contact the reporters on this story: Hugh Son in New York at hson1@bloomberg.net; Zachary R. Mider in New York at zmider1@bloomberg.net
Last Updated: February 26, 2009 13:47 EST
Unfortunately, my life insurance policy that I bought years and years ago, was bought by AIG a couple of years ago. Even with me having a rather substantial policy with them, I think I would have rather seen them sink than swim.
AIG INSURES THE PENSION TRUST OF THE UNITED STATES CONGRESS!!
American International Group Inc. was the recipient of a government "bailout" of about $85 billion back in September of last year. But the loan that was extended to the failing insurance company was not the work of the U.S. Congress. The deal was brokered by the Federal Reserve with the backing of the Treasury Department. In fact, some members of Congress were not at all supportive of the deal.
Furthermore, the decision to lend the company money could have nothing to do with pensions for members of Congress. AIG does not insure the pension trust fund that covers members of Congress and other federal employees. AIG spokesman Peter Tulupman dismissed the claim as "an unsubstantiated rumor." And Kathy McGettigan, deputy associate director of the Office of Personnel Management's Center for Retirement and Insurance Services, told FactCheck.org: "No one insures that fund. The fund's assets are backed by the earned benefits of [federal] employees. The fund itself is not insured."
http://www.factcheck.org/askfactcheck/did_congress_bail_out_aig_because_it.html
Richard's $.02 :munchin