Archive for the ‘AIG’ Category

Watch For Next “Bailout” Idea To Come From California…..

May 20, 2009

“California Gov. Arnold Schwarzenegger, alarmed by the ongoing national financial crisis, warned Treasury Secretary Henry M. Paulson on Thursday that the state might need an emergency loan of as much as $7 billion from the federal government within weeks.  The warning comes as California is close to running out of cash to fund day-to-day government operations and is unable to access routine short-term loans that it typically relies on to remain solvent.”
http://ac360.blogs.cnn.com/2008
/10/03/california-bailout/

.
That was last October 3, 2008.  So what does any thinking American believe about a bailout of California now that the state’s  voters have refused to pay more?

(A)  Arnold Schwarzenegger will ask Obama for a bailout.  California is too big to fail.

and

(B) The rest of us shouldn’t have to pay more.  No Fed Bailout for California.

The problem is, like an addict needing drugs, many are crying for a bailout after AIG, the banks, the entire auto industry and a bunch of others got fed at the trough.  Geithner has turned into drug dealer of first choice.

It might not be “permanent.”  Just an addiction….

“We are committed to helping California in these difficult economic times,” an Obama administration official said today. The official was not authorized to speak publicly….

The Obama Administration also caved in on its threat to withhold stimulus money from California…..

The L.A. Times reported that a letter that was given to the governor this morning, the U.S. Department of Health and Human Services said the state remains eligible to receive another $8 billion in stimulus money for its Medicaid program, a ruling that may offer some solace for state officials coping with the resounding voter defeat Tuesday of five ballot measures aimed at closing California’s huge budget shortfall.

Note “some solace”= $8 billion….

http://michellemalkin.com/2009/
05/20/bailoutmania-not-permanent-just-forever/

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Obama Gets Pragmatic, Learning As He Goes

May 14, 2009

President Obama’s decision not to release photos of detainees abused while in U.S. custody in Iraq and Afghanistan is potentially representative of an important change in the way this administration handles politically sensitive subjects.

Until very recently, the president has displayed a tendency to make decisions on weighty matters by instinct. For all of his hyped “thoughtfulness,” as president, Obama has been less than intellectual in his approach. 

When it came to crafting a stimulus bill, the White House could hardly be bothered to check the details. That was left to the Democratic leadership in the House. The president was Billy Mays, out there selling the thing with a huge smile and a glimmer in his eye. But unlike Mays, he hadn’t even tested the product he was pitching. In fact, he pitched it before he even saw it. 

By Andrew Cline
American Spectator

The president announced major decisions on stem cell research and abortion funding as if he were announcing that he’d decided to have soup for lunch instead of a sandwich. There was not even an attempt to show that serious thought had gone into the matters. The stated reasoning behind the stem cell decision was so convoluted that clearly no serious thought had gone into it, other than to pick the right political jargon. 

The president’s knee-jerk reaction on AIG bonuses was so ridiculous that he had to take it back almost immediately. 

But lately, it seems that we’ve begun to see a shift away from the instantaneous application of reactionary liberal positions and toward a more pragmatic approach. 

Read the rest:
http://spectator.org/archives/2009/05
/14/obama-gets-pragmatic

Unfortunately, we do not yet share Mr. Cline’s  positive view of the Obama “learning by bad government” theory….

Related:
Obama Gets It Both Ways: Detainee Abuse Photos Likely To Be Released Anyway

Bankrupt Tribune gives bonuses after berating AIG

May 14, 2009

Two months after denouncing a troubled financial company for doling out hefty management bonuses, a bankrupt news media company is doing the same thing.

“Money for nothing?” blared a Chicago Tribune editorial in mid-March, responding to news that American International Group Inc. planned to give $450 million in bonuses to its top executives during a very public federal bailout.

By Jennifer harper
The Washington Times

But this week, the Tribune Co. – which owns the Chicago Tribune, the Los Angeles Times, the Baltimore Sun, the Hartford Courant and other dailies, along with 23 TV stations – received permission from a Delaware bankruptcy judge to pay out $13.3 million in bonuses to some 700 local and corporate managers.

The payouts come as $2.7 million in severance pay to 68 employees who lost their jobs last year remains frozen.

Read the rest:
http://www.washingtontimes.com/news/
2009/may/14/bankrupt-tribune-dole
s-out-bonuses-after-blasting-/

What Did We Get for $180 Billion “Bailout”? AIG Still “Toxic”

May 13, 2009

More than $180 billion later, AIG is still a toxic economic site.

That’s what American International Group Inc. Chief Executive Edward Liddy told a House panel Wednesday, saying the insurance giant has reduced but not eliminated the risk its failure poses to the global economy despite getting more than $180 billion in federal bailout aid.

“The assurance I can give you is we will do everything we can to not require more federal money” but that will hinge on how long the worldwide recession drags on and the condition of the financial markets, Liddy told the House Oversight and Government Reform Committee.

Liddy, who the government installed as head of AIG, said the crippled firm is selling many of its foreign assets to repay U.S. taxpayers, but lawmakers questioned whether the plan makes sense and demanded details.

Liddy agreed to provide portions of AIG’s “Project Destiny” restructuring plan to the committee, but said details are sensitive and could hurt the company’s ability to sell assets.

“We will work with you to provide everything that we possibly can,” Liddy told committee chairman Rep. Edolphus Towns, D-N.Y. Main Street Americans were angered over AIG’s secrecy and its payment of millions in bonuses to employees, Towns said.

Read the rest from Fox News:
http://www.foxnews.com/politics/200
9/05/13/aig-ceo-insurance-giant-rem
ains-toxic-b-bailout/