Tag Archives: AIG

Finally, the Truth About the A.I.G. Bailout – NYTimes.com

29 Sep

Lincoln talked of government “for the people, of the people, and by the people.” He didn’t say anything about too-big-to-fail banks.

Starr contends that the government could have spent less money on A.I.G. — and therefore imposed less onerous terms on the company — had the bailout’s architects directed some of their tough love at the Goldmans and Deutsche Banks of the world. And Starr is hardly alone in making these claims. Ever since the details of the A.I.G. rescue entered the popular consciousness, everyone from members of Congress to financial commentators to Occupy Wall Street protesters and Tea Party activists have fulminated against the “backdoor bailout” of Goldman et al. By fully litigating the issue, the Starr trial may finally help heal this festering wound.

At the heart of the controversy is the fact that the government has never provided a plausible explanation for why the Federal Reserve Bank of New York, which had enormous leverage over banks like Goldman thanks to its role as their regulator, didn’t lean on them to accept less than 100 cents on the dollar in their payouts from A.I.G.

via Finally, the Truth About the A.I.G. Bailout – NYTimes.com.

Elizabeth Warren has asked Congress to stop the secret bailout of AIG, and so should you.

16 Mar

The issue is about something called “net operating loss,” which in normal circumstances allows corporations to use losses in one year to offset their future tax bills.

But when companies are taken over, as AIG was when the government spent over $100 billion to keep the company afloat, they are supposed to be barred from using their net operating loss in this way.

Here’s where things become suspect. In 2008 the Treasury issued a special waiver to a handful of companies, including AIG, that allows for their net operating losses to offset taxes owed to the government.

At a time of brutal budget cuts at all levels of government, it would be simply unconscionable for Congress to allow for a multi-billion dollar subsidy to AIG’s shareholders and executives.

Go to the link below and sign the peitition.

via Elizabeth Warren has asked Congress to stop the secret bailout of AIG, and so should you..