AIG crumbled and released the names of its counterparties, the people who got $107.8bn of flow-through money from taxpayers in the Big Bailout.
The bad news is that US entities only got 35% of the money. That isn’t going to help with lending.
And the bad news is that AIG actually needed billions more to keep its insurance company subsidiaries afloat. In 2008, the 10-K tells us, AIG made capital contributions to its insurance company subs of $27.2bn. It’s at least possible we’ll get some of that back, if AIG ever sells out.
And the bad news is that $2.5bn went to the AIG Financial Products wasteland to pay bonuses to the traders who got AIG into this mess. Which AIG absolutely had to do, no choice. Those traders, they have AIG over a barrel. If they leave, there’s no telling what terrible things might happen.
And the really bad news is that absolutely no one is standing up to any of the financial thugs. When corporations fail, the rule is that every one takes a haircut. How come no one made AIG counterparties take a haircut? Maybe it has something to do with the fact that every single person supposed to be on our side was involved in this mess when the dirty deeds were done. That includes the Trustees appointed to oversee AIG: one of them is
Chester B. Feldberg, a former New York Fed official who was chairman of Barclays Americas from 2000 to 2008.
And the good news? Barclays got $8.5bn from AIG.