After the United States lent billions of dollars to the American International Group, better know as A.I.G., now they have the audacity to want more funding from the United States. As of Monday, March 2, 2009, A.I.G. was preparing to report a $62 billion lose the largest quarterly lose in history. This is the fourth time the government has given A.I.G. money so they would not have to file bankruptcy. The government now owns 80 percent of their holding company, because of the help A.I.G. received from them over the years. They received a $60 billion loan, a $40 billion purchase of shares and $50 billion to soak up the company's toxic assets.
With this new deal, it will cause even more financial risk for taxpayers at a time when Congress and the public are skeptical about the government bailing out private companies. A.I.G. has had more help from the government than any other company that has experience financial hardship.
What is going here? It is time that we hold companies like A.I.G. and others accountable for their actions. Whey should the taxpayer have to endure more of this behaviour. There is no way that A.I.G. should be in financial trouble with all the money the government and the Federal Reserve have given them. Maybe the government should stop helping, because it's only hurting the taxpayer's and the economy.
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Absolutely! last year when AIG filed for the bailout, the government was skeptical about handing over such a large amount of money to a private company. After making the decision to go through with it, AIG had the audacity to use tax payers money for elaborate personal spending which included country club memberships, private plane escorts, exotic vacations and spa packages. No wonder why they are always in trouble of going under. They have absolutely no right to this money, or the business of hard working American citizens for that matter. They deserve to be shut down. I think the government should laugh in there face and tell them to figure it out on their own. I also think that a public apology is in order from the companie's president for how irresponcible they have acted in using the money that was supposed to be for improving their financial situation.
ReplyDeleteAIG should be held accountable for their actions. Why should we give them any more money? The answer is we shouldn't but we are because we are dumb enough to believe that this will resolve itself. I don't think it will ever.
ReplyDeleteIf you want to know why we are in the hole that we are in then blame it on AIG. I agree with Cat the government should make them figure it out on their own and not with our help. I don't think they can at this point. It is too late. In fact, it is about to go under because the stock is only selling for 37 cents a share now. The public should be owed a huge apology for this failed bailout. But you know what? We aren't going to get the apology from AIG because they don't care. Great post.
Wow. AIG has been bailed out 4 times? You would think with 2 bailouts, they could be back on their feet. If they can't resolve their issues, they should just close down shop. Taxpayers have paid enough time and effort to get this organization back on running ground, and it keeps crashing.
ReplyDeleteLet this be an example for the government, that maybe more of the money that they are basically handing out is going nowhere!
I feel like AIG should be held responsible for their mistakes. They have been bailed out way too many times. I think it is pretty ridiculous that they have used previous bail ou tmoney for luxury vacations and things that have no relevance to anything. The gov't needs to give them a little tough love!
ReplyDeleteAIG needs to fail. Simple as that. AIG has to fold, it is being improperly run and because of that it is not going to be fixed, despite how much the government wants to fix it. The best thing is for the free market to allow the best-run corporations to survive and thrive. If we keep throwing money to poorly-run companies like AIG, then that means we are giving poorly-run companies an advantage over well-run companies.
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