Posts Tagged ‘AIG’

Treasury to covertly nationalize troubled banks?

April 20, 2009

A big damn smile may have just crossed Paul Krugman’s fuzzy face.  After weeks of lamenting the poor decisions of the Obama Treasury Department, new information from the New York Times suggests that the money used to shore up the banking giants during the bailout may soon be converted to common stocks.

Fuzzy Wuzzy.

Fuzzy Wuzzy.

The effect of such an action is consequential for anyone tired of giving free public money to private banks.  Essentially, this course will nationalize several of the banks because the United States government (taxpayers) will become the majority shareholder.   Apparently, the U.S. government has already arranged this type of relationship with Citibank.

Before this decision was made, a great number of tax dollars were given to the troubled banks without any strings attached.  Instead of buying up all the troubled assets (securities that can be difficult to value) of each bank, we would get common stock in the company.

This could be good news and could be bad.  If the stock price absolutely tanks (which the government could actually be anticipating), then the tax payers could end up suffering.  However, as a majority shareholder, the government will be on the board of directors for the company and will be able to influence decisions that are made regarding our investments.  We already know that the troubled assets are next to worthless, so if we can get a decent deal with the stock conversion plan, we may end up getting a lot of our money back.

When the credit lines open up again, we can expect the United States government to sell taxpayer shares in each bank.  Hell, we could even make money on this.

Expect this to be a rallying cry for the “Obama = Socialist” crowd.  But it’s a hell of a lot better than handing your federal taxes to the nearest AIG executive and expecting nothing in return.

RWP Rating: Bizarre

Full Story: New York Times

Glenn Beck allegedly sued over 9/12 project

April 1, 2009

Early Wednesday morning, Glenn Beck allegedly received a phone call from the lawyers behind the 9/11 Project, a non-profit organization dedicated to providing emergency relief during national disasters.  According to preliminary reports, Beck’s Project may require a name change or face legal consequences.

Glenn Beck is super serial.

Glenn Beck is super serial.

Beck recently started a movement called the 9/12 Project.  A melodramatic attempt to capitalize on the worst tragedy in American history, nearly 8 years after the fact.  The name 9/12 refers to the country’s feelings the day after 9/11 as well as 9 principles and 12 values that Beck believes will offend the least number of Fox-watchers while still causing enough criticism to raise his ratings.

The controversey originated when Beck decided to remove one of his 12 values from the organization’s leger.  After defending the bonuses AIG executives received in the last week, Beck made the decision that “Thrift” needed to be removed from his list of 12 values.

After Thrift was removed, the organization had no choice but to fall into the new name The 9/11 Project, creating a conflict with the non-profit.  “It’s Unamerican, what they are doing,” said a spokesperson for Beck. “Personal responsibility is one of our most important values.  These handouts they give, they don’t help anyone.”

Beck could not be reached for comment.  However, a tearful apology or a tearful tirade involving the 9/11 Project is expected on Thursday night’s show.

RWP Rating: Crazy!

Full Story: Median Matters

Quick Link: Pat Robertson says executive pay at AIG is “bullshit”

April 1, 2009

Reverend Pat Robertson of the 700 Club had some choice words for AIG executives this morning on his show.   A reporter from The Science Monitor contacted Robertson at his mansion later in the day and asked him to clarify his remarks.  “God says it harder for a rich man to get to heaven than for a camel to pass through the eye of a needle.  What these people did, well, it’s bullshit!”

RWP Rating: Crazy!

Full Story: The Science Monitor

Senator Chris Dodd asked AIG executives for campaign contributions (full text of Cassano email)

March 31, 2009

Chris Dodd is going to have some explaining to do.  If you want to choose one person to blame the entire financial crisis on, then you would be an idiot.  But if you want to do it anyway, then choose Joseph Cassano, the douchebag AIG Financial Products chief executive that pushed the credit defaults swaps market right off a fucking cliff.   It seems Cassano left some pretty damning emails around after his firing from the insurance giant.  Emails that could ruin Senator Chris Dodd’s (D-CT) political career.

Chris Dodd could be fucked.

Chris Dodd could be fucked.

Dodd apparently reached out for political contributions from AIG executives during his 2008 presidential campaign.  The email from Cassano appears to show that Dodd asked AIG executives and their spouses to donate the maximum $2,100 to his campaign.  Beside from being a presidential candidate, the email also shows that Cassano was interested in Dodd’s position as the next chairman of the Senate Banking, Housing, and Urban Affairs Committee.

Previously it was known that Cassano donated to the Dodd campaign.  However, the email appears to show that Dodd was the one that instigated the donations.  It should also be noted that Cassano contributed to the presidential campaign of Barack Obama.

Let’s wait for some sort of confirmation before we believe everything the Washington Times writes.  But the story and the alleged email look to be authentic.  You can view it for yourself here.

The email doesn’t use catch phrases like “he’ll be a team player” or anything similar, but it implies it.  This might be too strong of a tactic to use against Dodd if they are looking to put a Republican in his seat in 2010.   I should clarify.  Dodd is not running for re-election, but damage to the Democratic party in Connecticut could transfer to the new Democratic candidate.   We’ll see where this crazy train takes us.  In any case, this will definitely be a Republican Talking Point today.

RWP Rating: Bizarre

FULL STORY: Washington Times