When the U.S. federal government initially invested in AIG with $85 billion it didn’t require any seats on the Board of Directors. The AIG members of the Board of Directors retained their seats as members of the board after the bailout. In effect this means that although the government owns 79.9% of AIG the U.S. federal government has no input as to how the company is ran. The original investment was made on September 16, 2008. There was a second bailout October 8, 2008 for another $37.5 billion. The third bail out occurred November 10, 2008 for another $29.5 billion raising the total bailout to date of $150 billion.
If you give a mouse a cookie.
He’s going to ask for a glass of milk.
When you give him the milk, he’ll probably ask you for a straw.
When he’s finished, he’ll ask for a napkin.
The childrens story, "If you give a mouse a cookie," goes on and on.
Maybe the U.S. federal government should demand some resignations on the Board of Directors. The democrat Rep. Elijah E. Cummings called yesterday for the resignation of American International Group's top executive after news reports of another resort hotel event involving employees from the giant insurance firm. Notice he only asked for the resignation because of another resort hotel event and not the poor management of the Board of Directors and their incessant need for more.
If you give a politician reelection.
4 comments:
Thanks for pointing me to the story. Sooooo true! They're running such a Mickey Mouse operation; no transparency, no accountability, no plan. Just throw money at the problem and hope everything will be ok. Time will only tell who's the most corrupted.
I love the cookies story, it's so accurate, here is another story I got in from other blog and would like to share with your readers,
Man walks into pawn broker. He says to the person behind the counter, "You know that watch I brought in two weeks ago? I know you lent me $85, but now I need another $50. And I will tell you why you will give it to me. I have a gun with me. I will blow my brains out here, right now. With your nice carpet, I guarantee it will cost you more than $50 to clean up your store. And that's before we get into the cost of keeping your store closed while you clean my grey matter off your walls and what my suicide might do to your store's reputation."
Don't u think that AIG just so good to play this type of "threaten" games.
I believe many of the US companies like AIG, Goldman, Citi, American Express, Automakers faces a very serious "too big too fail" problem, It's the time to have some new regulation and rule to prevent the "threaten" of the collapse of global financial system. we urgently need the global coordinated effort to impose more stringent regulation on financial companies to avoid the excesses that plunge the world into economic turmoil.
The World I Know
In AIG's case, they are now asking for a filet mignon, with baked potato, calamari for appetizers, and--of course--chocolate mousse pie for dessert. All washed down with Dom Perignon champaign.
Dear Jason,
Saw your post on our site www.hbjcapital.com (Equity Research & Investment focus site on Indian Stock Markets & Global Economy). Your articles here are great reading:-)
Just drop us a mail @ HBJCapital@Gmai.Com, we would like to have long term relation and knowledge sharing with you.
Regards,
HBJ Capital Research Team
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