US News AIG Has Used Much of Its $123 Billion Bailout Loan

[The Helper]

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.

The high volume of taxpayer funds that the trillion-dollar corporation tapped within five weeks also has others fretting that the largest government bailout in history may still not be adequate. AIG began reporting unusual multimillion-dollar losses this spring as a result of its heavy exposure to risky mortgages, and the U.S. Treasury decided that its failure would probably bring down several other major investment firms and banks whose fortunes were tied to AIG.

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www.washingtonpost.com

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This reporter is a dumbass. I wonder how much more money we are going to give them to pay off these dumbass policies they wrote? Wasn't enough? Maybe AIG just sucks and the people there are incompetent. Not giving them enough and somehow some other bs besides AIG being a totally incompetent company made up of Harvard Ivy League dumbasses who are getting rich and going to Spas on our dollar. How much longer? This Washington Post guy needs to get a clue or just shut the F up.

 

[Effane]

I personally would like to see someone take the time to do the projections on what would happen if they let these things fail. Either that or if the government buys up some companies assets they should smash them to little pieces like AT&T was done in the 60/70s. Free checks annoy me and most of America, only the bureaucrats like this bailout mentality.

 

[The Helper]

If they failed a bunch of Default Swaps would be gone. These are like insurance but not about deals going bad and deals have been going bad and AIG has been paying out on these things. That is where that money is going. Paying Investors Insurance policies, basically they sold these things and spent the money and now people are getting rich off of our money.

 

[LouReeves]

AIG has earlier repaid the loans it had taken from the Fed with interest. According to the Fed, taxpayers have made a total profit of $17.7 billion from its assistance to AIG.

 

[Accname]

That is the most funny spam bot I have ever seen.