Skip to comments.AIG "Was Going to Bring Down Europe": Lawmaker (Kanjorski)
Posted on 03/06/2009 2:08:47 AM PST by CutePuppyEdited on 03/06/2009 7:16:50 AM PST by Admin Moderator. [history]
The U.S. government rescued giant insurer American International Group in part because its collapse would dramatically hurt European banks, a senior Democratic lawmaker said on Thursday.
The U.S. government has bailed out AIG three times since Sept. 16 and committed about $180 billion to keep the insurer alive and doing business.
(Excerpt) Read more at cnbc.com ...
So sixty some years later, Americans are still bailing out Europeans!
$152 billion tax dollars went to the AIG Financial Products (AIGFP) office in London several months ago, where a large part of the OTC derivatives were written (and where much of the money has been alleged to have passed through to China). Many billions of tax dollars more might be going there soon, if that hasnt already happened.
AIG failing would have brought down the World banking system.
The world includes Europe, so technically this Democrat spokesman is right - but it’s a typical act of blame-passing. Which some FReepers will credulously believe, of course.
If that is indeed the case, one must take every precaution that such a monster is put down and broken up- and that none of it's kind tread the earth ever again.
But rather than heed this cautionary warning, we prop them up with our grand-children's wealth.
I, for one, believe it. What was the question?
I’m sure they’re into a lot of pockets but some of the main insurance that AIG is into is the “public employee retirement system”.
Search “AIG “Public Employees’ Retirement System”” and see all the recent suits from the various states afSCUM unions. Can’t let them fail - it’s the core of the Democrat Party. ...them and ACORN.
Joseph “Joe” Cassano, who ran AIGFP cranked up CDS printing press, particularly after Maurice “Hank” Greenberg was pushed out by the board “on behalf” of Eliot Spitzer and with the help of his extortion tactics.
I believe the reason that we lowered our banking reserve requirements to historic lows and repealed Glass-Steagall is so that we could compete on a global basis against these European banks that are now in trouble for taking excessive risk.
We need to protect our own markets by putting back in place the protections that came out of the Great Depression and bring the world up to our standards if they want to compete in America.
You are right about the “World” financial system, but many of the Congress-critters are so self-absorbed, I’ll give him half a credit for recognizing there are places other than USA (like Europe) that may affect and be affected by what is going on here.
That’s why the subject of “decoupling” always made me shake my head.
Somehow the name Christopher Dodd doesn't fit in the same sentence with the words transparency & accountability unless they're preceded by the modifier "lack of."
Chicken Little is at it again....
Um, Rep Kanjorski, if it would bring Europe down either let them pay or....let them go.
Repeal of Glass-Steagall is a red herring, which Democrats initially tried to used to divert attention from their own complicity (CRA, GSEs etc.) and to blame this crisis on Gramm-Leach-Bliley Act. In reality, repeal not only made our institutions more competitive with foreign integrated banks, but also more diversified, and with stronger and more diverse depositors and liquidity base.
If you had noticed, it were pure “investment banks” - not integrated or pure commercial (without brokerage component) banks - that fell due to lack of liquidity and loss of confidence, resulting in potential of “run on the bank” by large commercial depositors including other financial institutions.
Contrary to popular myth, Glass-Steagall has not prevented vicious infamous “bear raids” on the banks in 1930s, nor has it prevented numerous banking crises, including the Thrift and Loan crisis of the early 90s.
Banking system is quite different today than it was in the 30s, it is global and more diverse, and going “back to the future” (Glass-Steagall) would make things only worse, not better, while not accomplishing the stated objective.
Here is the better case of monstrosity that has nothing to do with globalism or internationalism. In fact it's entirely national. GSEs (Government Sponsored Enterprises, aka "public-private" institutions), like Fannie Mae and Freddie Mac which recently held more than 50% (over $5T) of all the mortgages in the United States, including overwhelming majority of subprime and Alt-A loans.
That's the ones that were run and defrauded by Obama's transition team advisers Jim Johnson, Franklin Raines, Jamie Gorelick et al. That's the ones that were defended by Barney Frank and Christopher Dodd as "stable" and "not in danger". And when Bush in 2001 and 2003, and later McCain (let's give him credit for this one) tried to reform and more stringently regulate GSEs, they and Schumer stood in the way of these bills.
Nothing inernational or global about that, except maybe for many foreign investors in GSEs securities and debt.
Why didn’t EUROPE share the cost???
unbelievably stupid of our government
“Public Retirement” pensions are the next shoe to drop on taxpayers, whether they are held by AIG or any other investment vehicle. Some of these states’ and municipal pension accounts were not “fully funded” (a misnomer, to begin with) in recent years, and with the market down there are few of them that can be considered in good shape or chance to recover.
Get ready for a “fully funded by taxpayers” bailout of government workers’ pension plans.
I thought they bailed out AIG because AIG had the Congressional pensions invested there.
Seems like every day there is another $50B-$100B bailout of something and/or another like-sized spending proposal. I really feel like we have gone thru the looking glass.
Nothing inernational or global about that, except maybe for many foreign investors in GSEs securities and debt.
With the combined Bush Bailout of $3.11T (w/ fed manipulations) and the $4T Porkulus, not to mention another $500B coming for the fed, those mortgages could have been bought outright.
You can comfort yourself with blaming Democrats all you like, but Republicans were in authority and responsible for the regulation of those programs for years, so are negligent at the very least. And Republicans have historically held the ties to Wall Street financiers, who knowingly took those faulty loans and rolled them up into packages, poisoning the whole lot, yet doubling and redoubling their "worth", while everybody turned a blind eye.
Had Republicans been practicing Conservative economics instead of consumer based "Third Way" economics, spreading easy credit around like Democrats, we would *not* be where we are today. Period.
Yes, its the gut feeling to do so...
Until you realize that the Free Nations of the world are all interconnected through their banking and financial systems and if a large one crumbles like Europe then we all fall down like dominoes.
In bailing out AIG we/they bailed out GS.
Indeed. It is my personal speculation that things began to really go awry in the transition of the return of Hong Kong to China. I think it is there that our businesses (and our government), picked up some very bad habits. I can't really put my finger on it, but since that time, or thereabouts, this whole global socialist/corporate thing started getting a mind of it's own.
Are you sure that's the case today?
The impression I was getting was exactly the opposite:
Goldman Sachs, Citigroup, Wasserman, SAC, Blackstone ... Warren Buffett, Paul Allen, George Soros, John Paulson, John Corzine, Stephen Cohen, Bob Rubin ... CEOs of top US companies like Google, Apple, Progressive Insurance... rich limousine liberals... just to name a few.
I had a quick look at your FR page. In your State, there’s a retired aviation engineer who put a lot of free, well written and illustrated how-tos on very low-cost solar and other energy stuff on his website.
Follow the “projects” and “references” links for much more. It’s a great site to learn from, IMO.
At least most of those individuals and groups contribute to both political parties. ...even some third parties.
I am already far along the same path, having renounced the Republican Party the very day Duncan Hunter stepped down.
I am aware of the Falcon Party, through our FRiends in the Hunterite Clan, pissant particularly, but have endeavored to remain independent for the time being.
Before long I will take a decision, and it will either be to run with you guys, or with my good FRiends at aipnews.com - Both of which I feel are strong Reaganite parties.
As an aside, I do think we should all duke it out and get behind ONE party pretty soon... All of us together, speaking with one voice here on FR could really make a difference, and it will take one voice to overcome all the RINOs hereabouts come election time.
And while we’re at it,... Apologies to any who have seen this before. Many haven’t.
The following are Fortune 500s that paid lawyers to file briefs in favor of “affirmative action” in the Michigan “Grutter v. Bollinger” (Michigan University) case.
E.I. Du Pont De Nemours
Ernst & Young
Johnson & Johnson
Nationwide Mutual Insurance
Proctor & Gamble
General Motors Corporation
Isn’t AIG the key to the politicos’ hefty DC pensions?
I heard somewhere that the pensions for our annointed political hacks and knaves in DC have pensions backed by paper from AIG.
Can’t remember where but maybe someone can find out.
I pay particular attention to parties that have explicit and stubborn platform statements on fair trade, Israel, and social issues, even including including feminism. Over the years, I’ve become wary of third parties that have very generalizing platforms.
Whether for or against, you might want to have a look at the following exchange. More information is good for all people of various positions on the issues.
Heads up :-)
Oh c'mon now... They all throw money everywhere -Geo. Soros particularly, who also donated to McAin't if you'll recall- Hell, 'tween him and ketchup Kerry, they founded McCain'ts lil' ol PAC. And here you are lauding McCain't as the guy who tried to shut down Freddie and Fannie.
Methinks he doest protest too much.
The whole stinking lot of them, lest a handful of suppressed Reaganites and Libertarians are all one big gigantic show. The sooner folks figure that out, the better.
Actually the wind power stuff is more to my current interest... I have a 20'x3' upright "squirrel cage" wind generator in prototype right now that seems to do pretty good... Adjustable trim on the blades allows it to function in nearly any conditions, or close up if wind becomes too strong... Still working on the automation of that part...
That is seriously cool.
I understand your concern, and AGREE COMPLETELY. However, The AIP must be given some credit, in that it went from a very loose organization founded largely here on FR in early summer of 08 to being larger in terms of registered members than any other 3rd party- It also had to become organized in twenty some-odd states, and continues to develop state level organizations. So they have been busy... Their initial platform will no doubt be refined now that they are settling in a bit...
What they have produced in mere months, with very little in the way of income or exposure is nothing short of astonishing. And to suggest that their aim is anything less than Reagan Conservatism can be easily be disproved by looking at their organizational aims and spending some time on their forums.
That being said, your criticism is a fair one, and it is something which should not be overlooked in the rush.
And if not let them go into oblivion.
Besides there was an earlier article stating that a primary reason for saving AIG was because they have a vast reserve of union pension money stashed away out of the public’s view.
See my reply on the originating thread:
FR: "House Divided: GOP's Leadership Crisis Sharper than Steele- ALAN KEYES" #28
No, it was due to exposure to Lehman. The Fed and Treasury weekend session (September 13-14, 2008) failed to sell or backstop Lehman with liquidity. Lehman went under and declared bankruptcy the next day.
That triggered automatic mark-to-market revaluation to $0 of the assets on the books of money market funds that held Lehman securities. Reserve Primary money market fund immediately accounted for it, which resulted in it "breaking a buck". That triggered a run on money market funds. AIG was taken over a day later, which didn't help the panic, but it was not a primary cause of the run.
See Defusing A $5.5T Run On The Banks - FR, February 15, 2009
Thanks very much for the ping. Outstanding thread! Thanks to all posters/researchers/linkers/educators. BTTT!
No, AIG IS the underwriter of “insurance” (derivitives) of penultimate resort,....the U.S.taxpayer being the final and ultimate underwriter of securitity for European, Australian, Japanese, and some Chinese banks. The U.S taxpayer owns 79.9% of AIG and must be responsible to be sure the derivitive contracts perform. If they do not perform, the entire world economic systems fail, including the USA. Martin Wise, James Sinclaire have been screaming at the top of their lungs about derivitivie exposure for 3 years that I know of. It was as plain as the nose on your face what had to happen. It was only a matter of when. Now, it is happening. AIG will be back again, and again and again to the federal trough. Your personal savings and retirement, if in the market or bonds, is underwriting the European banking failure. They are trying to let the gas out of the balloon slowly, but a day will soon come, (I do not know what that trigger will be), and I believe in the next 13-15 months, when the spring being held down will suddenly unwind and that global economic meltdown will come to the revelation of all in just a few days. It will be a world thrown into darkness and despair. The derivitive nightmare makes this absolutely unavoidable. Prepare the best you can.
No. AIG sold today for 36 cents per share. AIG is the conduit whereby the treasury and Federal Reserve funnel money to Europe. Why do you think Bernanke, this week, refused to tell Senators and congressmen where the nearly 2 trillion dollars, some of it TARP money (and therefore taxpayer money insstead of Fed printed money)? Bernanke told them to shove it up their ass. Congressmen and Senators did not have the balls to press the question and find him in contempt of Congress. It was a disgusting display of cowardice we have come to assume in elected officials. Our Republic hangs by a slender thread as we steal the dimes from our parents eyes and transfer a debt which our children will never be able to repay. The liberty tree needs to be refreshed from time to time. This is such a time.
Didn't those shoes make it to the mother ship?
OK, but if we are so interconnected, then why don’t they pony up some of the $?
Europe give the U.S. money?
We are Uncle Sugar to them, they will never give us money.