Home
Archive
Newsletters
Video
Blogs
Discuss
About
Search
Donate
Advertise

Under Pressure, AIG Discloses Recipients of Bailout Billions

By AlterNet Staff, AlterNet. Posted March 16, 2009.


Under public pressure, insurance giant reveals recipients of $75 billion.

Share and save this post:

      

      

Share on Facebook       

AlterNet Social Networks:
follow us on twitter
find us on Facebook

In Special Coverage

Belief:
What if People Actually Treated Religion as Just a Metaphor (Like Trekkies and Secular Jews)?
Greta Christina

Corporate Accountability and WorkPlace:
Labor Against the War Shifting Sights to Afghanistan Occupation
Jane Slaughter

DrugReporter:
The War on Weed: Marijuana Is Basically Harmless -- The Monumentally Stupid Drug War Is Not
Jim Hightower

Environment:
20 Weird, Crazy Ideas for Helping the Earth

Food:
The War on Soy: Why the 'Miracle Food' May Be a Health Risk and Environmental Nightmare
Tara Lohan

Health and Wellness:
When Sex Hurts, and No One Can Tell You Why: The Mysterious Condition Called Vulvodynia
Carey Purcell

Immigration:
What Denying Unauthorized Immigrants Health Insurance Will Cost You

Media and Technology:
The Memory Scrub About Why Ft. Hood Happened Is Almost Complete ... If It Weren't for Archives
Mark Ames

Movie Mix:
The Yes Men: Pranksters Out to Fix the World
Mark Engler

Politics:
Just When You Thought It Was Safe: 3 Potential Obstacles to Health-Care Reform
Adele M. Stan

Reproductive Justice and Gender:
Why the New Breast Cancer Guidelines Are Racist
Devona Walker

Rights and Liberties:
Economic Crisis Is Getting Bloody -- Violent Deaths Are Now Following Evictions, Foreclosures and Job Losses
Nick Turse

Sex and Relationships:
Hot Mormon Muffins and Models for Jesus: What's With All the Sexy Christians?
Liz Langley

Take Action:
G-20 Meetings: Nothing Much Happened in the Suites, and There Was Too Much Punch in the Streets
Laura Flanders

Water:
Poseidon's Financial Shell Game: Why Is a Private Desalination Plant Asking for Public Money?
Peter Gleick

World:
The Obama Speech America Is Dying to Hear: "This Administration Ended, Rather Than Extended, Two Wars"
Tom Engelhardt

More stories by AlterNet Staff

Advertisement
Upcoming AlterNet stories on Digg

The Washington Post:

In the six months since the government's bailout of insurance giant American International Group, a rescue that has become increasingly costly and contentious, one question has loomed above all others: Where did the money go?

The answer became a little clearer yesterday when AIG unexpectedly released the names of dozens of trading partners it has paid using billions in taxpayer dollars. The disclosure, which the company said was made after consulting the Federal Reserve, revealed that AIG paid more than $75 billion in the final months of 2008 to numerous domestic and foreign banks, as well as to various U.S. municipalities.

The funds were paid from the government's initial $85 billion emergency loan in September and included major firms such as Goldman Sachs, Societe Generale, Deutsche Bank, Merrill Lynch, Morgan Stanley, Bank of America and Barclays.

The payments were made between Sept. 16 -- the date that government assistance began -- and Dec. 31.

More than $34 billion of the money went to trading partners of AIG Financial Products, the small subsidiary whose exotic derivatives brought AIG to the edge of collapse. In recent years, the firm had written massive numbers of credit-default swaps, insurance-like contracts that other companies bought as protection against the default of mortgage-backed securities. When the housing boom began to go bust, banks that had purchased the swaps demanded collateral from AIG, burying the company under a tidal wave of debt. Federal officials, wanting to keep the company from failing because they feared it was too intertwined with the global economy, stepped in to help.

In the last months of 2008, AIG Financial Products paid more than $22 billion in taxpayer money to satisfy debts caused by its swap contracts. Another $12 billion went to pay off municipalities in dozens of states for whom the firm had created complex investment agreements.

Read the entire story here.


Digg!    Share on facebook   submit to reddit    Bookmark on Delicious   Stumble This  

See more stories tagged with: bailout, financial crisis, aig

Liked this story? Get top stories in your inbox each week from AlterNet! Sign up now »


Advertisement
Advertisement

 

You've chosen to turn comments off for the entire site. Would you like to turn them back on?
  • AlterNetYour turn

Support AlterNet
Do you value the information you're getting from AlterNet? Please show your support with a tax-deductible donation.


Feedback
Tell us how we're doing.

Advertisement
Advertisement