TARP

BoA, Wells Fargo, TARP Recipients, Forcing U.S. Workers to Train their Foreign Guest Worker Replacements Before Being Fired

Wells Fargo, a TARP recipient who bought Wachovia, is now forcing U.S. workers to train their foreign guest worker replacements before being fired. So is Bank of America.

Are you thinking wait a second, weren't those banks given billions and billions in U.S. taxpayer dollars? Aren't they supposed to first consider U.S. workers for jobs in the United States? Weren't Bank of America and Wells Fargo made H-1B and L-1 guest worker dependent employers by legislation recently passed by Congress?

Let the (Rigged) Games Begin! Reports of Citigroup, BoA Preparing to Ripoff the Taxpayer

This is one hell of a story. The New York Post is reporting:

As Treasury Secretary Tim Geithner orchestrated a plan to help the nation's largest banks purge themselves of toxic mortgage assets, Citigroup and Bank of America have been aggressively scooping up those same securities in the secondary market, sources told The Post.

Both Citi and BofA each have received $45 billion in federal rescue cash meant to help prop up the economy and jumpstart the housing market.

But the banks' purchase of so-called AAA-rated mortgage-backed securities, including some that use alt-A and option ARM as collateral, is raising eyebrows among even the most seasoned traders. Alt-A and option ARM loans have widely been seen as the next mortgage type to see increases in defaults.

The Incredible Brazen AIG Gives $165 Million dollars in Executive Bonuses

This is just unbelievable and it makes it more unbelievable that AIG has not been broken up, all executives fired.

Insurance giant AIG to pay $165 million in bonuses:

American International Group is giving its executives tens of millions of dollars in new bonuses even though it received a taxpayer bailout of more than $170 billion dollars.

AIG is paying out the executive bonuses to meet a Sunday deadline, but the troubled insurance giant has agreed to administration requests to restrain future payments.

The Treasury Department determined that the government did not have the legal authority to block the current payments by the company. AIG declared earlier this month that it had suffered a loss of $61.7 billion for the fourth quarter of last year, the largest corporate loss in history.

BoA Pulls Jobs Offers to H-1B Guest workers

It seems our worker friendly clause which said TARP recipients first had to consider qualified U.S. workers before bringing in more foreign workers on H-1B guest worker Visas is working:

Bank of America has become the first US bank to withdraw job offers made to MBA students graduating from US business schools this summer, citing conditions laid out in its bail-out deal as the reason.

The recently passed $787bn stimulus bill in effect prevents financial institutions that have received money from the government’s troubled asset relief programme from applying for H1-B visas for highly skilled immigrants if they have recently made US workers redundant.

BofA, which has received a total of $45bn in Tarp funds, is in the process of digesting two large acquisitions – Countrywide, the mortgage broker, and Merrill Lynch – which will see thousands of jobs lost.

Throwing Good Money After Bad - AIG gets another $30 billion

AIG may get another $30 Billion.

AIG has already received $150 billion to back $300 billion in derivatives contracts.

The Wall Street Journal gives a little more detail:

The new funding is intended to support AIG as it absorbs $60 billion in quarterly losses and operational and competitive upheaval. Under the plan, the insurer will repay much of the $40 billion it owes the Federal Reserve loan with equity stakes in two AIG units overseas -- Asia-based American International Assurance Co. and American Life Insurance Co, which operates in 50 countries.

Repayment was originally supposed to be in cash with interest. In addition, AIG will securitize $5-$10 billion in debt, backed with life insurance assets, to further reduce its debt burden.

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