AIG Gets $40 Billion Injection From Treasury

American International Group Inc says it has completed completed a $40 billion preferred stock sale to the U.S. Department of Treasury under TARP.

* Says to use proceeds to reduce borrowings under original credit agreement with Federal Reserve Bank of New York.

Read the whole story here.

Comments

[funkalicious]

When history repeats it always costs more...lots more.

[leeman79]

I thought W said he was holding the other 350B for O? Why is Paulson spending all of this money, and why is it all going to the wall street robber barons?

[lobear00]

make enough confusion within the nation and no one can be held accountable for their "Crimes".

[MakeAWish]

This whole government bailout screams of being unconstitutional. I don't remember reading anywhere in the constitution about taking the peoples taxes and giving it to corrupt and badly managed banks and companies.

One only has to look at Obama's economic transition team, to see that they are mostly some of the same old cronies with questionable pasts and connections to this economic mess.

All these corrupt banks, companies and the people who run them should be left to rot and compost. Otherwise, nothing will change. Sadly, it doesn't look like much will be different with Obama either.

[lobear00]

This is a new rule implemented by the "Republicans and the Bush regime. Remember bush is the "Dictator" .

[Rule Of Law]

Don't bother us with little things like the Constitution. Bush has already told us how he feels about it.

[Agentlady007]

"It looks better" - this is what I remember.

[rabiddog6708]

40 billion and AIG will still deny your insurance claims. Kiss your tax dollars good bye.

[lobear00]

This is what they do and they do it "Very Well".

[crystallynfl]

If the gov. can bail out these greedy Wall Street companies and banks,
then they damn sure better help out the Auto industry. This is blatant
discrimination white collar vs. blue collar. Not to mention the domino
effect if they let the autos go into bankruptcy.

[lobear00]

The republicans and bush are here to break the "Unions" . They've tried every other which way and this just may work.

[NicholeWebb]

It seems as though it is getting close to time for the taxpayers to revolt. My sweetie said, "they'll throw you in jail!" and I said, 600 million of us?

[sparkey]

The one who makes sure of correct grammar must be on vacation from what I see at the top of the page. Anyway, how soon will it be before the banks want everyone in this country to use a card to buy anything? I can see it happening next year. I just don't know if it will be before or after the Amero is brought out to save us all.

[totaldisbelief]

I'd like to see a survey of what a U.S. taxpayer would do with a 100,000$ stimulus check.
Why can't we fix the situation from the bottom up?
What good is "freeing up credit" of you are already buried in debt payments?
I haven't seen anyone suggest workers getting a raise in wages.

[fatmo]

It just hit them, they have to steal all the money now before the end of the year because a new sheriff is coming to town. So lets finish stealing it all now.

[957]

To everyone who makes less than a hundred grand an year.....bend over grab your ankles, because here it comes again, the snow job/ con job they call bailout/ tarp is coming at you again.

[OgreDaddy]

$40 Billion coverers the risk that Goldman Sachs had riding at AIG.

Just another chapter in the greatest bank heist in world history.

The only difference this time is that the bankers are robbing the people.

[lobear00]

They always have! the difference now' is its full blown robbery now!

[the addick]

So there you are, in a lifeboat, trying to put distance between yourself and the sinking Titanic. Then, just before the bow disappears beneath the waves, the man next to you, says he'll sell you the ship for $40 billion. If your name is Paulson, the answer is obviously "Hell yeah!" You just happen to have a spare $40 billion you recently acquired and, sh*t, it's not your money anyway.
Okay, the ship's at the bottom of the ocean...........but it's yours.

[PhilipTaylor]

Where is Paulson getting this MONEY?

He spent all $350 Billion, so is this the second $350 Billion?

CONGRESS: Do not give it to him!

[LAThinker]

He prints it

http://www.ucubd.com/Index.aspx?id=738&cid=3168

[cmeans29]

There is nothing Congress can do about it! These NEW bailout figures are coming from the Federal Reserve.

The total bailout will cost: $8.5 TRILLION. $5.5 TRILLION was be allocated from the Federal Reserve. Paulson doesn't need Congress' approval to access Fed $$$. The balance will be borrowed from: China, Japan, Saudi, etc.

[JessWonderin]

So Paul can write a $40 BILLION dollar check over the weekend to a bank to guarantee some pencil pushing thieves lifestyle but CAN"T send ANY to the AMERICAN auto industry . . . oh, I forgot, THOSE are just workers and vendors with families, and besides Bush just signed a 13 week extension for them to try to find another job . . . .

[tomas0808]

There will be a new phrase emerging from this to add to the lexicon: Wall Street Scum