AIG Audit on CDS Payouts

The TARP Inspector General is opening an audit on AIG payouts.

American International Group Inc.’s payments to banks including Goldman Sachs Group Inc. after the insurer’s bailout are being probed by the chief watchdog of the U.S. financial rescue program.

Neil Barofsky, special inspector general for the Troubled Asset Relief Program, has opened an audit into whether there were attempts made by New York-based AIG or the government to reduce the payments, according to an April 3 letter he wrote to Representative Elijah Cummings. The Maryland Democrat had requested the probe last month along with 26 other lawmakers.

Lawmakers, frustrated with the cost of an AIG bailout that expanded three times, have asked why about $50 billion was paid after the rescue to banks that bought credit-default swaps from the firm. Legislators want to know if AIG offered less to retire the contracts and whether there was any review about banks’ ability to sustain losses on the derivatives

For background, read The Real Screw Job: AIG Used as a Funnel.

Meanwhile, one of the largest benefactors from these ill-gotten taxpayer funds funneled from AIG, Goldman Sachs, whines about the new corporate propaganda term, protectionism and rails against Buy American trends.

Oh Goldman Sachs, we're really working on stopping protectionism and your Ponzi scheme, insider games and rigging the system is the number one protectionist enterprise we hope is addressed!

Subject Meta: 

Forum Categories: 

This is priceless:

Blankfein said: “Do we really want to invite other countries to take punitive measures against us?”

Can you imagine India instituting punitive measures against us for prohibiting corporate welfare recipients from shipping jobs overseas? Am I missing something if I welcome that potential trade dispute?

We need to break up the financial oligarchy now!

You must have Javascript enabled to use this form.

"punitive measures"

About the only thing India could really do is steal U.S. consumer banking data and steal intellectual property. Oh yeah, I think they have already done that many times...

Like what? They are going to refuse to suck up American jobs and force U.S. companies to actually hire U.S. citizens for jobs?

Or...oh bummer, those radioactive mangoes...well, we're not going to get them in exchange for advanced nuclear technology after all?

You must have Javascript enabled to use this form.