In a record bailout of a private company, the government on Monday provided a new $150 billion financial-rescue package to troubled insurance giant American International Group, including $40 billion for partial ownership.
Who is starting to think the bail out is one big sink hole?
AIG is asking the US government for a new bail-out less than two months after the Federal Reserve came to the rescue of the stricken insurer with an $85bn loan, according to people close to the situation.
The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion bailout of the banking system. Two months later, as the Fed lends far more than that in separate rescue programs that didn't require approval by Congress, Americans have no idea where their money is going or what securities the banks are pledging in return.
A number of financial experts now fear that the federal government's $143 billion attempt to rescue troubled insurance giant American International Group may not work, and some argue that company shareholders and taxpayers would have been better served by a bankruptcy filing.
Great, now that AIG has already received over $143 billion taxpayer dollars it still maybe tettering on bankruptcy
The U.S. Treasury and the Federal Deposit Insurance Corp. are considering a program that may offer about $500 billion in guarantees for troubled mortgages to stem record foreclosures, people familiar with the matter said
The terms, not official would be:
The plan, which might put as many as 3 million homeowners into affordable loans, would require lenders to restructure mortgages based on a borrower's ability to repay
The potential for deterioration in economic conditions, given the contraction in credit, may also affect budget conditions this year - Ryan
They are now seeking private investment:
We all benefit from a deep, liquid Treasury market, and SIFMA and the Treasury Markets Practices Group have the opportunity to take a leadership role in devising and implementing private-sector solutions to current challenges
The U.S. Treasury is considering taking stakes in insurers, as it prepares a new round of capital injections targeted at regional banks and other financial companies, a person briefed on the plan said
Some life insurers have asked the government to make the participation of life companies mandatory because firms don't want to identify themselves as needing funds
Mandatory to get taxpayer funds simply because they do not want to identify themselves?
Additional details are how the Treasury didn't anticipant the drop in the markets. Right, they scream Fire in the Theater and are now surprised?
In my opinion the legislation was all for show and had no real provisions to limit executive pay for bailed out financial institutions but now we have an even worse situation.
CBS MarketWatch is reporting the Treasury released interim rules for the banks receiving the $250 Billion
Some of the corporate governance and executive compensation rules in the original bailout legislation have since been softened by interim final rules drawn up by the Treasury as part of its plan to inject capital into banks.
New York Times is reporting $250 billion for investing in large and small banks.
The FDIC will give unlimited insurance on non-interest bearing bank deposits.
Now check out the New York Times graph of who gets the most, already decided. That is $125 billion already doled out to our fab 8 which means there is only half left for anyone else.
At least they are getting preferred stock for the deal.
Supposedly the program was not voluntary and supposedly they will have reduced executive compensation so far ill defined.
Hank getting tough with his buddies? Not too sure since he just handed over billions.
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