AIG WANTS MORE MONEY…AGAIN…
Remember last October when AIG rewarded 70 of the company’s top performers with a week-long stay at the luxury St. Regis Resort in Monarch Beach, CA where they ran up a tab of $440,000? This was right after they received an $85 billion bailout. Well, now they have the audacity to ask for more money from us. How balsy can they get? Reported expenses for AIG personnel included $200,000 for rooms, $150,000 for meals and $23,000 for the spa. Less than a week after the taxpayers rescued AIG, company executives could be found wining and dining at one of the most exclusive resorts in the nation. They were getting their manicures, pedicures, massages and facials while we were paying their bills. They were not held responsible by paying back the stimulus money. No wonder why these corporated pigs are so corrupt. It pays off for them!!!
This comes on the heels of bailed out Northern Trust sponsoring a big PGA event, blowing millions (see my recent blog). Now we have AIG seeking more money. AIG already received two bailouts last year. They’ve blown through that money, and now they want more. As I’ve said about them in a previous blog, maybe they should change their name to PIG because they’re hogging all our hard-earned money. The more they have, the more they want.
What the heck did they do with the $150 billion they got from us already? Look where the Dow is? It’s DOWn another 250.89 points (7114.78)! Our investments are dwindling as these big hogs get bailed out every time. No wonder they want more money. Obama will give it to them!
Ask yourself: Who are the recipients of Obama’s bailouts? Let’s look at some recent history…
Obama received $30,800 from John M. Noel, head of Travel Guard, part of insurance giant AIG, which received a federal bailout. Another instance where Obama is rewarding those who helped get him in the White House. AIG is just one of a handful of corporate bailout recipients, or bailout candidates, that donated significant funds to offset the parties, lighting and staging of the nominations of Democrat Barack Obama in Denver and Republican rival John McCain in Minneapolis-St. Paul. Seems like they greased both parties’ palms for “insurance”. No matter who won the presidency, they’d be “paid back”.
Ford, General Motors, Citigroup and Freddie Mac all provided cash or goods to the conventions, according to a report prepared by the Campaign Finance Institute and the Center for Responsive Politics, two nonpartisan organizations that track political money.
Want to hear more? Roughly two weeks after the back-to-back conventions last summer, the Treasury Department announced an $85 billion bailout of AIG, which had split its convention donations evenly between the parties.
Freddie Mac, which was virtually taken over by Treasury, donated $500,000, evenly split between the host committees. Covering all the bases like AIG and the other hogs.
Investment banks such as Goldman Sachs, Morgan Stanley, UBS and now-defunct Lehman Brothers―all of which have either received direct aid from the government or benefited from new lending standards imposed by Treasury and the Federal Reserve―donated $1.5 million to the host committees.
Nearly $3 million in cash and equipment came from the banking sector, including Citigroup and Bank of America. Most of those are now eligible for, or have received, government assistance.
And the latest corporate players coming to Washington with hat in hand, the auto industry, also had a major presence at the conventions. Ford donated $100,000 to each of the host committees, and GM made available 735 new cars to the conventions for use by elected officials and other VIPs. Yes, Ford did not accept a bailout, but as I pointed out in a previous blog, I believe it’s because they don’t want to be held accountable for their excessive expenditures.
"The conventions provided representatives of major corporations and industries with many opportunities to interact with Washington’s decision-makers," said Sheila Krumholz, executive director of the Center for Responsive Politics. "Those conversations may have paid off just weeks later when the government started handing out money to those companies and industries that are struggling."
Corruption and hypocrisy are abundant in our new administration, and nobody seems to care. This is getting so sickening. When is America going to wake up and say…ENOUGH!!!
|Tuesday, 24 February , 2009, 09:17|
New York: American International Group Inc, which was rescued twice last year by the US government, is in talks with authorities for more aid as it looks to post its largest-ever quarterly loss, a source familiar with the matter said on Monday.
AIG is expected to post a roughly $60 billion fourth-quarter loss, the source said.
The loss would be among the largest in corporate history, exceeding Time Warner’s $54 billion loss in 2002 and dwarfing the $24.5 billion loss AIG posted in the third quarter, when the government increased its rescue package for the troubled insurer to about $150 billion.
The latest round of talks with the government include the possibility of additional funds for the insurer and trading debt for equity, another source said.
The situation is fluid and other options are being discussed, this second source said, adding that it was unclear where the talks would lead.
AIG may look to convert preferred shares held by the government into common stock, Bloomberg reported, citing an unnamed source.
The discussions are going on as US authorities try to put out financial crisis fires on other fronts as well. Citigroup Inc, whose stock has been pounded by fears that the government may seize the bank and wipe out shareholders, is also in talks to give the government a larger stake, a person familiar with the matter told Reuters.
CNBC, which first reported AIG’s discussions, said the losses to be announced next Monday were due to writedowns on commercial real estate and other assets. It said the insurer’s board will meet next Sunday to work out an agreement with the government.
In case they do not reach a deal, AIG’s lawyers at Weil, Gotshal & Manges LLP were preparing for the possibility of bankruptcy, CNBC said.
But the first source told Reuters that while AIG has retained Weil Gotshal, the insurer has no plans to file for bankruptcy.
"Is it likely that $60 billion more of capital has been destroyed? Or is it likely that they are just accounting for that which already happened?" said Thomas Russo, a partner at Gardner, Russo & Gardner, which manages more than $2 billion. "I suspect it’s more of the latter than the former."
AIG said in a statement it had not yet reported results and would provide an update when it does so in the near future.
"We continue to work with the US government to evaluate potential new alternatives for addressing AIG’s financial challenges," AIG said.
US Treasury officials declined to comment. Weil could not be reached immediately for comment.
AIG shares closed down 1 cent at 53 cents on the New York Stock Exchange on Monday.
AIG was first rescued in September after bad mortgage bets left it on the verge of collapse. The government stepped in with $85 billion in bailout financing, as the credit crisis peaked with Lehman Brothers Holdings Inc filing for bankruptcy and Merrill Lynch agreeing to be bought by Bank of America Corp.
The rescue swelled in November as AIG posted its then-largest ever loss, hurt by writedowns on assets linked to subprime mortgages and capital losses. The Federal Reserve and US Treasury stepped in with even more money to buy mortgage assets that had left AIG deeply in the red, and eased the terms of its loan repayment.
AIG has said it plans to sell all assets except its US property and casualty business, foreign general insurance, and an ownership interest in some foreign life operations, as it looks to raise money to pay back the government.
Although AIG has announced some sales, it is trying to sell assets at a time when buyers are often dealing with their own problems and credit for acquisitions is scarce. The insurer’s ongoing troubles are likely making things harder.
"The seller is in a rather perilous position," Russo said. "And buyers typically appreciate the amount of leverage they have."