AIG Primer By Dean Baker
The fabulous Dean Baker has put out a great primer on AIG. Unfortunately, it’s in pdf format only, but read it anyway.
Dean covers not only the issue of the bonuses, but also why you should be even more outraged about how the government has wasted $170 billion of taxpayer money and counting.
What did Geithner know and when did he know it: He knew it back in September when he was chair of the NY Fed and personally in charge of the takeover. Maybe he didn’t think it was important at the time, but he knew about it.
What has been happening to the $170 billion in bailout money? It’s been going to pay for credit default swaps gone bad. Dean points out that this raises several problems:
- Most of the money went for gambling debts. Of the
Bonsus: if they must be paid, then make the private shareholders who still own 20% of the company pay for them. Issue new stock and give the government 4 shares for every new common share.