AIG Bits The Hand That Feeds

In the last post I just got done talking about this, where the Jack Wagons will be going after piles of money from their buddies for the cream is gone from the bucket.  The poor dears, go to the mirror you created this for yourself.

People of America we're watching

The move would be something of a shock, given that AIG just launched a high-profile television ad campaign called "Thank you, America," in which it offers the public its gratitude for the bailout. On Tuesday, the company promoted the ads again on Twitter, even as it came under fire over the lawsuit.

Video uploaded by U Tube user AIG



If AIG enters this suit it would be the equivalent of a patient suing their doctor for saving their life," said Mark Williams, a former Federal Reserve bank examiner who teaches in the finance department at Boston University.

AIG's board of directors had an alternative choice to borrowing from the Federal Reserve and that choice was bankruptcy. Bankruptcy would have left all AIG shareholders with worthless stock," a representative of the bank said Tuesday.

Greenberg, (Maurice R. Greenberg, A.I.G.’s former chief executive, who remains a major investor in the company) whose Starr International owned 12 percent of AIG before its near-collapse, has accused the New York Fed of using the rescue to bail out Wall Street banks at the expense of shareholders, and of being a "loan shark" by charging exorbitant interest on the initial loan.

The U.S. Treasury declined to comment. It completed its final sale of AIG stock in mid-December, concluding the bailout with what Treasury called a positive return of $22.7 billion. AIG shares fell 1.2 percent to $35.49 in afternoon trade. After losing half its value in 2011, the stock rose more than 52 percent in 2012, tripling the gains of the broader S&P insurance index. (good the Fed should put this into Social Security for we are being warned of yet another cliff hanger)

American International Group Inc, the insurer rescued by the U.S. government in 2008 with a bailout that ultimately totaled $182 billion, may now join a lawsuit against the government alleging the terms of the deal were unfair.

This clip is from Sreet TV interviewing Cramer about AIG bail out the date is Sep 16, 2008.
Cramer: The Market's Fate Rests With AIG
Jim Cramer explores the two possible scenarios for AIG and the ramifications of both.

Video uploaded by U Tube user TheStreetTV



Now for some news about the grateful AIG around the web from customers that have done business with them in Team Life Insurance,  and they call the Fed loan sharks, the poor dears!

Update: The board of directors of AIG have decided not to pursue the lawsuit against the Feds after a barrage of criticism from you!
Now I want to point this out, times have changed, look what happens in the media today when the consumer is pissed off.  Your seen and heard around the world so let the grading begin and with that the Jack Wagons have nowhere to hide, you will close their doors!

G.C.C.U.   

That's it enough already!

Pissed Consumer 

AIG Life Insurance

Ripoff Report

Overview

Wolf in sheep’s clothing

Repo 105?

If there has ever been a Betty Crocker  recipe for book cooking it's this Repo 105 and 108 which is the same just a percentage separates the two by 3%.  Now accounting is become rocket science,  firms are hiring grads from MIT with math majors and you would have to be one to even begin to calculate their books.

Repo 105 is an accounting maneuver where a short-term loan is classified as a sale. The cash obtained through this "sale" is then used to pay down debt, allowing the company to appear to reduce its leverage by temporarily paying down liabilities—just long enough to reflect on the company's published balance sheet. After the company's financial reports are published, the company borrows cash and repurchases its original assets.  Now isn't that clever,  a temporary move to hide your toxic assets until underwriters are done looking your books over and then give the borrowed money back to your buddy.  But oops,  Lehman could not pay back the borrowed money and all hell broke lose.

Same thing happen to AIG when they created insurance for the swaps and derivatives sold to fund managers and other counties through out the world like Greece,  the rug was pulled because Lehman went BK so AIG could not cover their spread.  Then the bailout started, they all got money from the Feds on the backs of American tax payers (Thank You) with that there was no demand for what they should do with the bailout money.  So now with all that cash  from the Feds the battle field has begun.  Wall Street does not want to be regulated and has hired attorneys along with lobbyist with the hundred of millions and even billions to halt regulators from the fat cow profits they designed.

They got the bailouts and instead of helping they bit the hand that feeds them so this shell game that contains no red ball can continue.  Because lets face it, no profit has ever been created like the subprime melt down, we have a junkie on our hands.  What you need to do is control your own investing, many programs available with purchase of stocks directly through a company itself,  no need for a broker or fund manager, instead of feeding this junkie cut them off.


Video uploaded by U Tube user traynickel