The Federal Reserve has agreed to provide insurance giant American International Group with a loan of up to $37.8 billion, on top of one made to the troubled company last month.
Under the new program, the Federal Reserve Bank of New York will borrow up to $37.8 billion in investment-grade, fixed income securities from AIG in return for cash collateral. These securities were previously lent by AIG’s insurance company subsidiaries to third parties.
Last month, the Fed provided an $85 billion loan to the company, which was on the brink of bankruptcy.
The White House said on Wednesday it was “despicable” that AIG executives spent hundreds of thousands of dollars on a posh California retreat just days after getting the $85 billion bailout.
This is a disgrace. The fact that AIG was ‘too big to fail’ and were bailed out, only to have a $500,000 retreat and then get more taxpayer money after that behavior?
If you have AIG, call them, drop them, picket them. Let them know that this is unacceptable. Let your lawmakers know that this is unacceptable. Voice your opinion. It may not change things now, but you will have put these people ON NOTICE that you are watching and will make decisions later (at the ballot box) based on what you see.