Poor Us: The Great Depression 2.0

March 17, 2009

Mad about A.I.G bonuses? Wait’ll ya see their new ransom demands

Filed under: Harbinger — Tags: , , , — debacled @ 5:51 pm

money by joefuckingjudd via DeviantArt.comWhile we’re readying the pitchforks and torches to storm AIG Headquarters over bonuses:

AIG Planning Huge Bonuses After $170 Million Bailout

Under a deal reached last week, A.I.G. agreed that the top 50 executives would get half of the $9.6 million they were supposed to get by March 15. The second half of their bonuses would be paid out in two installments in July and in September. To get those payments, Treasury officials said, A.I.G. would have to show that it had made progress toward its goal of selling off business units and repaying the government. The financial products unit is now being painstakingly wound down. (read on) via New York Times

AIG has been busy drafting a 20-page ransom note demanding, well, whatever cash we’ve got and as much more as we can raise.  Here’s a succinct threat from their Risk Summary:

The inability of AIG to immediately secure additional assistance from the Federal Reserve and the Department of the Treasury threatens not only AIG’s sales process [selling off their businesses that are still viable like life insurance], but also consumer and business confidence around the world [if their insurance business tanks, it’ll take down the entire industry].

The failure of AIG would cause turmoil in the U.S. ecomony and global markets, and have multiple and potentially catastrophic unforeseen consequences.

AIG-Risk-Bankruptcy-Report h/t Paul Kedrosky’The AIG Blackmail

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