Bear, AIG Dumped $74 Billion in Subprime, CDOs on Fed (Update1)

Hedge Fund Implode-O-Meter ^ | 4-24-09 | Mark Pittman

[ovrtaxt]

"The losses on securities backed by assets such as home loans in Florida and California signal that U.S. taxpayers may be forced to reimburse the central bank through the Troubled Asset Relief Program"

[ovrtaxt]

Follow the links back to the original Bloomberg article (which can’t be directly sourced on FR), or click here: http://www.bloomberg.com/apps/news?pid=20601103&sid=aa6ogsncMDo4&refer=news

[ovrtaxt]

Central Banking Theft ping!

[rovenstinez]

In an ancient book, written hundreds of years ago, it says, PEOPLE WILL BE SLAVES TO THE ONES TO WHICH THEY ARE DEBTORS. But since the US Law removed this book from their curriculum, we have to prove for future generations that the ancients were indeed correct.

[TigerLikesRooster]

LUV DIC, ping!

[pnh102]

People wonder why I personally hate the jerks who ran these companies and hope that only the worst befalls them. They are complicit in stealing my child's future away.

If they were real men, they would have taken the hit and let their companies fail the way they should have instead of insisting the taxpayer cover the cost of their poor business decisions.

[Diogenesis]

"Tell our slaves, I mean, voters, that we need more money for AIG and their payoffs to us. Now."

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"Sen Dodd (D-Conn) is THE lawmaker who legislated US government protection for AIG bonuses via the bailout package."

"Sen. Dodd has been rewarded in the 2008 election cycle with $7.65 million in campaign contributions
he took in $11.7 million in all — from the securities, insurance, real-estate and commercial-banking industries...
Citigroup, $310,294; SAC Capital Partners, $282,000; United Technologies, $263,400; AIG, $224,678; Bear Stearns, $205,600; St. Paul Travelers, $205,400; Royal Bank of Scotland, $203,750;
Goldman Sachs, $175,600; Morgan Stanley, $155,000; Credit Suisse, $154,550; Merrill Lynch, $134,950; The Hartford, $94,350; Bank of America, $91,300;
JPMorgan Chase, $129,150; USB, $101,900; Hartford Finance Services, $101,500, Lehman Brothers, $128,400; KPMG, $113,100; General Electric, $108,250; Deloitte Touche, $108,000
With $165,400, Sen. Dodd also tops the list of members of Congress who took campaign cash from Fannie Mae and Freddie Mac since 1989.
Sen. Barack Obama, the self-styled agent of change, is a distant second at $126,000...."

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"AIG's Small London Office May Have Lost $500B"
Ground zero for AIG's spectacular implosion, which has soaked up more federal bailout money
than any other entity, appears to have been a small London branch office
that may have lost nearly half a trillion dollars in bad deals."

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Obama Received A $101,332 Bonus From AIG

AIG chiefs pressed to donate to Dodd
As Democrats prepared to take control of Congress after the 2006 elections,
a top boss at the insurance giant American International Group Inc. told colleagues that Sen. Christopher J. Dodd
was seeking re-election donations and he implored company executives and their spouses to give.
The message in the Nov. 17, 2006, e-mail from Joseph Cassano, AIG Financial Products chief executive, was unmistakable:
Mr. Dodd was "next in line" to be chairman of the Senate Banking, Housing and Urban Affairs Committee, which oversees the insurance industry,
and he would "have the opportunity to set the committee's agenda on issues critical to the financial services industry.

[TurtleUp]

With 100 million households, and 50 million of them actually paying taxes, that comes to $1480 per productive family just for the latest gift to Bear and AIG.

Obama kept his word. He promised to soak the rich and spread their wealth, and that's what he's doing. His voters probably thought he'd be spreading our wealth to the poor, but spreading our money to his rich campaign donors still keeps his promises ... if you parse the words as carefully as democrats always do.

[ovrtaxt]

I have a 14 y/o son and a 12 y/o daughter. I’m making sure that 1. they have some marketable skill of their own, something they can employ as a trade, and 2. that they have some education in the hard sciences.

Liberal arts majors, marketing majors, business administration majors, I think will have a hard time as the phony economy corrects.

[pieceofthepuzzle]

Actually, they dumped it on us, and our children. And, the toxic asset crisis was fueled in part by the push for high-risk mortgages by Barney Frank and his Democrat peers.

[FreepShop1]

I have a 14 y/o son and a 12 y/o daughter. I’m making sure that 1. they have some marketable skill of their own, something they can employ as a trade, and 2. that they have some education in the hard sciences.

Plumbing and dentistry and good choices.

[FreepShop1]

I don’t think you people got the memo...everything is fixed now. You can safely buy all financial stocks as the market rallies to new highs!

[iopscusa]

Any Freepers with reliable sources for history/background on the American International Corp. (AIC), the predecessor to AIG?
All I have found on the www is from pretty wacky sites that like this: http://www.reformed-theology.org/html/books/bolshevik_revolution/chapter_08.htm#.

[L,TOWM]

Not trying to hijack the thread, but the subprime issue is really tied in with the illegal immigrant issue. 50% of the bad mortgages are located in only 30 counties throughout the US...

Invasions that are not halted, usuually work out really, really bad for the invadee.

[Hardastarboard]

they have some education in the hard science

That should keep them from becoming liberals, if they understand that there are actual facts that drive the world, and not just feelings. I always tell young people to get some business education, of any sort, but always particularly finance, so that they can make the transition from doing the work directly to managing. There's usually more money in management, and if they get tired of doing the work directly, they've got another route.

[org.whodat]

The Karl Marx capitalist will kill you over that statement! LOL

[library user]

Not trying to hijack the thread, but the subprime issue is really tied in with the illegal immigrant issue. 50% of the bad mortgages are located in only 30 counties throughout the US...

I'm glad you said something first. And no offense to the OP but that this is in 'breaking news' is a bit curious. I mean, people have lied and cheated and stolen since the beginning of time.

And a lot of these things we learned in September of last year. And it goes without saying that WE THE TAXPAYER are going to bail them out. Because who else will?

There is nobody else left to steal from except the hard-working people of America - people who are actually CREATING WEALTH in the first place.

Democrats understand this perfectly, but they refuse to acknowledge it, as doing so compromises their sick and pathetic grip on power.

[PGalt]

Thread BUMP! Thanks to all posters.

[SunkenCiv]

The Federal Reserve took on more than $74 billion in subprime mortgages, depreciating commercial leases and other assets after Bear Stearns Cos. and American International Group Inc. collapsed.

You know what might help? Helping people with their mortgage defaults. ;')

[snowsislander]

... U.S. taxpayers may be forced to reimburse the central bank...

That's an interesting statement.

Bailing out the Fed for holding soured dollar investments makes absolutely zero sense since it is a bank of issue for dollars. It can create as many dollars as it likes at any time.

If this is the type of nonsense that we are going to get from having our current central banking system, it might make more economic sense instead to simply shut the Fed down, and let the Treasury issue dollars instead.