What happened to AIG – from the World’s largest Insurance and Financial Company to a penny stock.
AIG was a very successful insurance company until it entered the shadowy world of Hedge Funds and Sub-prime Mortgage lending.
Incredibly risky Sub-prime mortgages were sold . Those mortgages were then “bundled” and resold in groups to investors all over the world. As mortgage defaults began to rise, these investors (like Citi Group) lost their equity in the investments and became insolvent.
The Government is mandating that American taxpayers “recapitalize” or replace these losses – through loans and bailouts.
Enter AIG. AIG created and sold a new product – Insurance Policies for the “bundled mortgages” – a policy that would “wrap around” a group of bundled subprime mortgages and provide insurance protection if the mortgage buyer defaulted or there was a “loss in value” of the underlying mortgage should the real estate market collapse. We know what happened.
So where is the Taxpayer money going. Why is the Federal Governemnt hiding the facts from the American people. Why don’t we have the transparency the Government promised us. Who, exactly, is getting these bailout dollars.
Did you know that the Biden Family (Vice President Joe Biden) ran a Hedge Fund called the Paradigm Companies. http://www.reuters.com/article/newsOne/idUSBNG36866620090224
The Paradigm Companies had an “exclusive sales agent” – Sir Alan Stanford – the disagraced financier charged with defrauding investors of $8 Billion dollars. Stanford even invested $2 Million of his own money in the Biden fund. http://www.reuters.com/article/newsOne/idUSBNG36866620090224 , http://www.washingtonpost.com/wp-dyn/content/article/2008/08/23/AR2008082302200.html?dbk , http://www.foxnews.com/politics/2009/02/24/report-bidens-son-brother-marketed-hedge-fund-stanford-company/ , http://www.bloomberg.com/apps/news?pid=20601109&sid=aKJhGIn.Z1O4&refer=home
Has this Hedge Fund received funds through AIG under the Government bailout? What other Hedge Funds received money through the bailout? Did we, the American Taxpayers, send money to Bernie Madoff through AIG or any of the other Bailout recipients?
The questions are: Why don’t we know where our taxpayer dollars are going? Where is the transparency?
The American Taxpayer will never see any of the money poured into AIG. AIG is in liquidation – the Companies profitable companies are being sold off – the AIG companies that hold the “mortgage related policies” will be all that remains – those companies will never be profitable – they are worthless. $180 Billion in taxpayer money has been spent and the Government won’t tell us where it is going.
Now that the Government controls AIG – the decisions about where AIG spends the Tax Payer money will be made behind closed doors by Trustees appointed by the Government.