Posted on 10/22/2014 8:48:51 AM PDT by Lorianne
The 2008 government bailout of American International Group Inc. was specifically designed to punish the insurance giant, former Treasury Secretary Henry Paulson said in U.S. court Monday.
The $85 billion loan package extended to AIG — then reeling from the financial and housing crisis — gave the government control of 80 percent of its stock. Unlike other major financial firms rescued in the middle of the worst economic downturn in roughly 80 years, Paulson said that AIG shareholders should have faced punishment for their troubled balance sheet as part of any rescue.
(Excerpt) Read more at gopusa.com ...
The problem with all of this is that is government misconduct is proven, the taxpayers will be the ones punished.
“The government eventually provided AIG with $182 billion in loans, which have been repaid. AIG has since returned to profitability, and its stock has risen more than 45 percent over the past two years to more than $52 a share.”
WoW! Now, that’s some really, really, really serious punishment! I bet that really hurt...to get government bailouts and to go on to make money “hand over fist.”
I think they should have given them a real good spanking and told them not to do that again. That would have shown them.
Well, the Treasury and Fed made about $23 billion for their loans to AIG, and now, at $52 a share, AIG has a market cap of about $74 billion.
Well! “Bust my buttons!”
So, you think that it’s OK for the government to give money to big business while completely ignoring small business?
The first rule of government bailouts is to ensure that members of the ruling class in our government make personal gains in their inside investments from any bailout. The second rule is to screw the taxpayers by giving ANY money as a loan to a private business. The third rule is to NEVER believe anything the government says or any statement whereby they even spout that they (and the taxpayers) made any profit from any financial action to a private enterprise.
It is totally impossible for the government (on any level) to make a profit since the cart is placed in front of the horse...the money is spent far before it is earned....and all of it plus some more.
What rule placed AIG in front of Jessie Gonzalez’ lawnmower repair shop for a bailout? Doesn’t he get a free pass too? The answer is no.
Give money? They were loans. Many smaller banks received them.
The first rule of government bailouts is to ensure that members of the ruling class in our government make personal gains in their inside investments from any bailout.
Sure. But we all benefit from a functioning banking system.
The second rule is to screw the taxpayers by giving ANY money as a loan to a private business.
Taxpayers would have been screwed MORE, if the banking system failed. And not only because their bank deposits would have been lost.
The third rule is to NEVER believe anything the government says or any statement whereby they even spout that they (and the taxpayers) made any profit from any financial action to a private enterprise.
In this case, they made huge profits on these short term loans.
It is totally impossible for the government (on any level) to make a profit
In this case, the loans were paid back, plus a big profit.
...the money is spent far before it is earned....and all of it plus some more.
The government spends, and wastes, way too much.
TARP bank loans still turned a profit.
What rule placed AIG in front of Jessie Gonzalez’ lawnmower repair shop for a bailout?
The fact that AIG crashing hurts the banking system, a lot.
Doesn’t he get a free pass too?
Nope. Sorry.
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