CHESSNOID

In 2008, AIG lost $100 BILLION.  Then in 2009, AIG lost another $12.3 BILLION.  In that same period of time, our federal government under both President Bush and Obama and a Democratic controlled House and Senate voted to extend $182 BILLION of taxpayer money to help this company out.  AIG threw million dollar parties, gave its CEOs and executives billions of dollars in bonuses and compensation, remodeled their offices and they didn’t even make a penny of profit for 2 years.  How do they get away with it?

What should have been done?  Easy answer.  They should have been sent to bankruptcy court, assets sold, liabilities paid, and investors would get whatever was left if anything.  This would have avoided those bogus bonuses paid out, lavish parties, and stupid remodels.  This would have saved $182 BILLION for us American taxpayers.  Instead our current President and Congress must now determine how much more money we should pump into this insolvent company (aka ponzi scheme).

Seriously?!

One last thing, I don’t believe in a word that Bernanke, Paulson, Geithner, or all the Ivy League economists who were all wrong about the housing bubble, economic collapse, recession, the foreclosure and unemployment rates.  They have no credibility in their forecasts and  analysis when they consistently are wrong every time.  Why do our politicians listen to them and why are they still employed for being wrong and giving out bad advice?  All that money wasted could have been used to pay for everyone’s mortgages, credit card bills and car loans.  We could of gave every American taxpayer $50,000 and seen immediate results in our economy.  Instead, incumbent politicians are resigning in droves because they will be kicked out of office for these stupid decisions that helped only their AIG friends and AIG counterparties.

Domain B:

American International Group Inc (AIG), once the world’s largest insurer, which narrowly missed bankruptcy unlike Lehman Brothers in 2008, has said that it may require additional US government support after incurring an $8.9-billion net loss in its fourth-quarter.

AIG, which posted a $10.9-billion loss last year in the midst of the global financial crisis, said that the fourth quarter net loss of $8.9 billion was a far improvement from the $61.7 billion loss for the same period in 2008 and the $100 billion loss for the whole of 2008.

AIG made a net loss of $12.3 billion for the whole of 2009.

Robert Benmosche, hired in August as AIG’s chief executive, said that the insurance major’s restructuring plan has shown ”great progress” by selling non-core businesses, reducing exposure to risky assets and stabilising its insurance operations.

Despite this, the New York-based AIG said in a filing with the US Securities and Exchange Commission that it may need additional government support. ”Without additional support … there could exist substantial doubt about AIG’s ability to continue as a going concern,” the filing said.

The US government bailed out AIG with a initial loan of $85 billion in September 2008 following the global financial crisis, where the insurer was on the verge of bankruptcy due to its risky transactions in mortgage securities and derivatives., (See: $85-billion bailout for AIG)

It again pumped more money taking the total bailout amount to $182.5 billion, making it to be the biggest bailout in US history. (See: AIG uses up $90 billion of $123 billion bailout, may require more)

AIG had sold protection on $441 billion of fixed-income investments, including $57.8 billion in securities tied to sub-prime mortgages. The swaps plunged in value as the assets they guaranteed declined, forcing $25 billion in write-downs over nine months and leading to three quarterly losses in 2008.

The US government was later forced to pump in additional money and is now 79.9 per cent owned by it taking the total bailout money to $182.5 billion.

After selling assets and cutting down on costs, AIG owed the US government $85.66 billion in loans and interest as of 30 September2009.

Although Benmosche said that he had full confidence in overall business of AIG, the insurer is facing numerous challenges due to tough economic environment and the loss of brand image caused by the bailout.