Thursday, October 09, 2008

AIG'S $85 Billion... Party Time!

What an outrage.... "U.S. Extends $38 Billion In New Loans to AIG." (WaPo)

That's after the $85 billion government rescue in mid-September.

They needed the money because their financial products division had made some risky and complex investments that had gone bad.... thus rewarding bad behavior not just once, but twice.

But, don't try this risky behavior at home, it can only be pulled off by professional corporate criminals with lobbyists in D.C.

And the second infusion came just a day after a House hearing found, among other things, that "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."

In Tuesday night's debate, Barack Obama called for AIG to repay the taxpayers the $440,000 and fire the executives who authorized this despicable boondoggle. But he didn't go far enough.

There seems to be an elephant in the room everyone is missing.... we got into this financial mess due to a lack of oversight. Now we're bailing out those who plunged the country into this financial disaster through their greed with an EQUAL LACK OF OVERSIGHT, still lacking PENALTIES WITH TEETH.

Why should white-collar crimes only amount to a justification for unaccountable corporate welfare? Who is watching the billions being sloshed into the maw of corporate coffers in the wake of their maleficence?

As a start, how about a few perp-walks, and then outfitting the AIG criminal CEO's in suits that aren't the pin-stripe variety.

November 4.

1 comment:

Lori Wheaton Illinois said...

It is dispictable what is going on with these companies. Why in the heck aren't the executives of these failing corporations out on their tails? And without their golden parachutes? Before my husband lost his job due to downsizing he only received a bonus when his quota was met. I believe that's how it should work. You get rewarded for a job well done. These CEO's get rewarded for sinking their companies. It's just not right.