It looks like you and I will be handing another $ 38 Billion over to the guys at AIG:
Turns out the $85 billion bailout loan for AIG wasn’t enough.
The company’s survival apparently requires another $38 billion in cash, and yesterday the Federal Reserve authorized loaning that much more to the struggling insurance giant.
The government will hold as collateral $38 billion of investment-grade securities owned by AIG.
(…)
This cash infusion comes a day after angry lawmakers criticized AIG for its spending habits during a House hearing.
Among other things, AIG is paying one of the executives who led the company into some of its most costly mistakes $1 million a month as a consulting fee to help it unwind his bad investments. And just a week after the first bailout, the company treated some of its executives and some high-performing life insurance agents to a weeklong stay at the pricey St. Regis Resort in Monarch Beach, Calif. Total cost for the spree: $440,000.
“It’s pretty despicable,” White House press secretary Dana Perino said of the resort trip.
Gee, do ya think ?
