CHESSNOID

AIG is one of the companies I felt were cooking their books way before their bailout or bankruptcy.  Just like a bunch of other companies who were forecasting profits then would announce massive losses.  They would forecast that everything is fine and that next quarter they would be back. Next quarter would come and they would have losses that dwarfed the previous quarter’s losses.

NYTimes:

“You don’t just suddenly lose $120 billion overnight,” said Donn Vickrey of Gradient Analytics, an independent securities research firm in Scottsdale, Ariz.

Mr. Vickrey says he believes A.I.G. must have already accumulated tens of billions of dollars worth of losses by mid-September, when it came close to collapse and received an $85 billion emergency line of credit by the Fed. That loan was later supplemented by a $38 billion lending facility.

But losses on that scale do not show up in the company’s financial filings. Instead, A.I.G. replenished its capital by issuing $20 billion in stock and debt in May and reassured investors that it had an ample cushion. It also said that it was making its accounting more precise.

Mr. Vickery and other analysts are examining the company’s disclosures for clues that the cushion was threadbare and that company officials knew they had major losses months before the bailout.

We all heard about the 1/2 million dollar party AIG held after we bailed them out with tax money.  Now they are almost finished spending everything in  less than a year and they will have their hands out again.  They need to be shut down and assets sold to other insurance companies.

Similar to when that IDIOT HANK PAULSON wanted $750 BILLION FRAUD BAILOUT MONEY and our IDIOT CONGRESS PASSED IT without oversight and accountability, AIG thinks they don’t have to answer to anyone.

A.I.G. has declined to provide a detailed account of how it has used the Fed’s money. The company said it could not provide more information ahead of its quarterly report, expected next week, the first under new management. The Fed releases a weekly figure, most recently showing that $90 billion of the $123 billion available has been drawn down.

A.I.G. has outlined only broad categories: some is being used to shore up its securities-lending program, some to make good on its guaranteed investment contracts, some to pay for day-to-day operations and — of perhaps greatest interest to watchdogs — tens of billions of dollars to post collateral with other financial institutions, as required by A.I.G.’s many derivatives contracts.

No information has been supplied yet about who these counterparties are, how much collateral they have received or what additional tripwires may require even more collateral if the housing market continues to slide.

I think people need to be prosecuted and sent to prison.  Forensic accountants need to come in and follow the money trail.  Hopefully,  enough people will realize that the next bailout bills those 3 idiots Bush, Bernanke, and Paulson propose is FRAUD and wasteful spending we can not afford.  I am afraid that when Obama or McCain takes over, they will propose the same nonsense since they both approved the FRAUD BAILOUT.   These same two Senators were praising Bernanke and Paulson for their great work into saving us from the severe recession they put us in.