Libertarianism is what your mom taught you: behave yourself and don't hit your sister.
Dr. Kenneth Bisson

UPDATED: Less than a week after taking the $85 billion government bailout, AIG Inc., sent executives on a $440,000 retreat to a posh California resort..UPDATE: Feds fork over $37.8 billion more to AIG

By: Pam On: Oct/7/08 -

The tab included $23,380 worth of spa treatments for AIG employees at the coastal St. Regis resort south of Los Angeles even as the company tapped into an $85 billion loan from the government it needed to stave off bankruptcy.

Don’t get angry though,

The retreat didn’t include anyone from the financial products division that nearly drove AIG under

See, they learned their lesson!

UPDATE:

Feds fork over $37.8 billion more to AIG

The feds are just warming up, people. This is chump change:

The Federal Reserve Board said Wednesday that it would provide up to an additional $37.8 billion to the insurance giant, the American International Group, to help the company deal with a continuing liquidity crisis.

The additional funds come atop $85 billon in credit that the Federal Reserve Board extended to A.I.G. about two weeks, just as the current financial crisis was unfolding. At the time, the bailout of A.I.G. was the most radical intervention ever by the central bank in a public company.

Under the latest step, the central bank, working through the Federal Reserve Bank of New York, will provide an additional $37.8 billion to A.I.G.’s regulated life insurance subsidiaries and will receive investment-grade, fixed-income securities in return.

The money will be used to settle existing transactions related to its securities lending business. Under that program, A.I.G. lent out securities to investors and others receiving both the value of such securities and a fee in return. The insurance giant then took the funds and placed them in other investments like mortgage-backed securities.

Now that the value of mortgage-backed securities has plummeted, A.I.G. does not have the money to repay those who are returning borrowed securities. As a result, the central bank is stepping in to take those securities and provide A.I.G. with cash to meet its obligations.

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Posted on: October 7, 2008 |

Posted in: Democrats, Economy, Presidential Election '08, State/Local Elections '06

2 Responses to “UPDATED: Less than a week after taking the $85 billion government bailout, AIG Inc., sent executives on a $440,000 retreat to a posh California resort..UPDATE: Feds fork over $37.8 billion more to AIG”

  1. DaveinPhoenix
    October 8, 2008 - 11:12 PM on October 8th, 2008

    I think there’s a few people left in northern Uzbekistan who we haven’t bailed out yet…can someone give ‘em a call and let them know that (the late) middle class America will take care of them ?

  2. AIG Needs $38 Billion More
    October 9, 2008 - 03:38 PM on October 9th, 2008

    [...] they got the first loan. No telling how much they will spend now. Take a look a: Michelle Malkin Right Voices New [...]

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