"In September 2008, Geithner engineered the government's purchase of an 80% share in AIG for the handsome sum of $85 billion, the amount necessary to prevent the company from entering bankruptcy. Losses continued to mount, however, and more federal dollars were needed.
Total cost of AIG's bailout to date? A staggering $185 billion -- or roughly $1400 per U.S. taxpayer. Yet today, according to AIG's own numbers, the company is worth less than $6 billion, and this after posting the largest quarterly loss in corporate history. Nevertheless, the problems at AIG extend beyond the balance sheets.
In March of this year, we learned what the Obama administration already knew -- that after receiving bailout funds, AIG paid $165 million in executive bonuses to employees of its troubled financial products division. Additionally, more than $30 billion in counterparty payments were made to Goldman Sachs, Bank of America, Citigroup, J.P. Morgan and Wachovia -- all of which received separate bailout funds directly from the government -- and foreign banks like Deutsche Bank, Société Générale and UBS, who received counterparty payments in excess of $50 billion.
The public was beyond outrage. They were sold something they didn't want for more than it was worth in a midnight fire sale of busted corporations over-leveraged in troubled, toxic assets. And yet, taxpayers are still kept in the dark about the management of their controlling interest in AIG."
http://spectator.org/archives/2009/06/08/a-tale-of-two-treasuries
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