This morning AIG threatened the US Government with a "Catastrophic Collapse" if they are allowed to fail. In a 28 page report they describe the repercussions of it's demise. After receiving 3 previous bailouts, for a total of 188 billion, now they're back for more.
Originally, the money was suppose to go directly to AIG, but it turns out that AIG has been feeding banks that need a big of resuscitation, oh yeah and to pay for swaps. According to Reuters, among these banks are: Goldman Sachs, Deutsche Bank, Merrill Lynch, Societe Generale, Calyon, Barclays, Rabobank, Danske, HSBC, Royal Bank of Scotland, Banco Santander, Morgan Stanley, Wachovia, Bank of America and Lloyds.
The initial bailout was to make AIG "pay" for it with high interest rate...the WSJ says that (AIG) has gotton pretty much a complete reversal of terms. Oh, my...is that a huge loan modification or what? Rick Santelli calls it "the new poster-child of all the reason why the gov't with the best of intentions just has a raft of unintended consequences and complex issues that just seem to get deeper, darker and more tough to follow every time".
Somehow the video I had on this news...just dissapeared. I'll repost if I can dig it up.
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