Category: banking

AIG To Shell Out Over $500 Million To Top Workers.

So they need to shell out a half of a billion dollars to keep employees (who should have been fired long ago) while continuing to ask for and take even more money from us, the taxpayers. This, of course, in addition to the fact that they continue to take expensive business trips to resorts:

American International Group plans to pay out $503 million in deferred compensation to some of its top employees, saying it must tap the funds to keep valuable workers from exiting the troubled insurance giant.

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banking

By David

Someone Is Finally Looking Into Accountability On Wall Street.

Seems someone has some cajones to jump right in and look for some accountability over there on Wall Street. Granted, they have not launched a formal investigation as of yet, but as soon as they realize that the CEO’s of these banks are not going to willingly participate, I am sure a thorough investigation will be started. I even read that some of the bailout money was going to be used to buy banks, and NOT for it’s intended purpose of making loans. These people have zero shame.

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banking

By David

Lobbying The Bailout Money Is The Biggest Game In Town Now.

Want a piece of the pie? Got a spare hand to use? Stick it out, what are you waiting for?

Insurers, automakers and American subsidiaries of foreign banks all want the Treasury Department to cut them a piece of the largest government rescue in U.S. history.
The Treasury is considering requests from a variety of industries, but has not decided whether to expand the program, officials said Saturday.
Lobbying efforts are intensifying.

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banking

By David

AIG Has Already Used 3/4 of Its $123 Billion Bailout Loan

Ouch. Does anything more need to be said other than Ouch?

The troubled insurance giant American International Group already has consumed three-quarters of a federal $123 billion rescue loan, a little more than a month after the government stepped in to save the company from bankruptcy.
AIG has borrowed $90.3 billion from the Federal Reserve’s credit line as of yesterday, the bulk of it to pay off bad bets the company made in guaranteeing other firms’ risky mortgage investments. That’s up from roughly $83 billion AIG had borrowed a week ago, and the $68 billion level it reached a week before that. The news comes as the company’s new chief executive warned Wednesday that the government’s financial lifeline may not be enough to keep AIG afloat.

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banking

By David

Taxpayers Are Funding $70 Billion In Bonuses For Execs, Too.

Did you know part of that $700 billion bailout plan was for bonuses for these guys? I sure didn’t, and I have not seen it mentioned anywhere in our media, but the Guardian over in the UK seemed to notice:

US congressman Dennis Kucinich has called for an inquiry into remuneration proposals at Wall Street’s top banks, after a Guardian report revealed that six distressed institutions had drawn up pay plans, including substantial discretionary bonuses, worth more than $70bn for the first nine months of the year.

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banking