American International Group Inc., the giant insurance company bailed out by the government to the tune of $85 billion last month, is getting another $37.8 billion loan.
The Federal Reserve said the second loan is needed as part of the central bank’s broader strategy for keeping in check a rapidly spreading global credit crisis.
Under the new program, the New York Federal Reserve Bank will borrow $37.8 billion in investment-grade, fixed-income securities from certain insurance subsidiaries of AIG in return for the cash loan.
The first $85 billion was provided to AIG through a line of credit with the Fed. According to Fed data, AIG has already burned through $60 billion of that money.
The new loan will allow AIG to replenish its liquidity, the Fed said.
AIG, formerly the world’s biggest insurer, came under fire earlier this week for holding a lavish retreat at an expensive beachside spa despite teetering on the brink of bankruptcy. At Congressional hearings held Tuesday, company officials were harshly criticized for apparently using taxpayer dollars for the conference.
AIG officials said the conference was planned months before the company accepted government money.
Seriously???!!! This is their excuse for dropping over $400,000 on a weekend executive retreat?! Maybe this could be one of the reasons your company was teetering on bankrucptcy in the first place! I know of no other business, when faced with bankruptcy that would still have the balls to plan an executive junket that will cost the company more than the vast majority of the families in America pull down in a year's time.
Here's a hint...should you have another one scheduled, you may want to call the spa and let them know you might not make it...yeah, yeah, I know there's a $250 deposit you won't get back...let it go...order in some pizzas and beer for the team and call it a night...okay, maybe one or two hookers, but that's as far as I go...they're harder to hide on an expense form.
Barack Obama hit the nail on the head during the last debate with this nugget...“I tell you what. Treasury should demand that money back, and those executives should be fired.”
Nope...not only did they not demand money back, they are funneling more into the sinking ship known as AIG.
So congratulations Robert Willumstad, you took over AIG on June 15th and have rocketed up the ladder of douchebaggedness to claim the inaugural award all for yourself.
Runner up...Securities and Exchange chairman Christopher Cox, who is responsible for approving the money being dumped into AIG.
Second runner up...Ron Turner. I just flat out don't like his play calling this year.
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