by Deb Cupples | Today's Washington Post reports:
"The troubled insurance giant American International Group already has consumed three-quarters of a federal $123 billion rescue loan, a little more than a month after the government stepped in to save the company from bankruptcy."
"AIG has borrowed $90.3 billion from the Federal Reserve's credit line as of yesterday, the bulk of it to pay off bad bets the company made in guaranteeing other firms' risky mortgage investments.
"That's up from roughly $83 billion AIG had borrowed a week ago, and the $68 billion level it reached a week before that. The news comes as the company's new chief executive warned Wednesday that the government's financial lifeline may not be enough to keep AIG afloat." (WaPo)
Surprise, surprise. This is the same AIG whose executives, just after receiving an $81 billion loan from us taxpayers, decided to celebrate by spending about $400,000 treating top execs to a week at a resort.
This is the same AIG whose board of directors chose to pay one Financial Products Group executive $280+ million over an eight-year period -- and when the Board fired that executive, the Board chose to let him keep $34 million in unvested bonuses and gave him a $1 million a year retainer. (House Oversight Committee)
This is the same AIG whose Board members, after ex-CEO Martin Sullivan resigned in June 2008, voted to give Mr. Sullivan a $15-million parting gift (golden parachute) -- yes, the same Mr. Sullivan who'd presided over AIG's downward spiral.
Other buck Naked Politics Posts:
* Greenspan Finally Admits Flaws of De-Regulation
* Lehman Execs Re-Distributed Shareholder Wealth (to Themselves)
* AIG Execs Re-Distributed Shareholder Wealth (to Themselves)
* Fannie CEO Got $38 Million, Risky Buys Weren't his Fault?
* Execs Took Millions While Driving Companies into Ditch
* AIG's $85 Billion Bailout: see What Anti-Regulation Ideology can do?
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