- What’s more, AIG is acting as a conduit for taxpayer money that is being sent to dozens of derivative counterparties, including foreign banks and American banks like Goldman Sachs. If we’re going to bail out all these other firms, why not bail them out in full taxpayer view? Why is the money being laundered furtively through AIG? And where exactly is the end game for AIG? How are the taxpayers going to be repaid?
That’s what Larry Kudlow asks in his brilliant article “The AIG Outrage.” (Aside: And the media wonders why they are losing market share left and right – try reporting some news.)
- Obama’s Administration is willing to break private mortgage contracts, but not employment contracts on an essentially federally owned entity.
- Bankruptcy would have nullified all employee contracts.
- Over $100 billion US Taxpayer monies were laundered to FOREIGN entities/banks through AIG
- Without the Mark to Market rules, many “in-trouble” entities would never have needed bailing out in the first place, quite possibly AIG too
The fact is, had the gov’t stayed out of it, bankruptcy would have prevented these bonuses from being paid.
- AIG should have been placed in bankruptcy last fall under some sort of government sponsorship. While in bankruptcy, all the salary contracts (and every other AIG contract) would have been nullified and voided. At the same time, there would have been an orderly liquidation and sale of AIG’s assets and separate divisions.