Distress due to recklessness and greed? Credit default swaps!
$165 million in bonuses after taking billions in federal bailout money...credit default swaps.
The AIG bonuses were revealed over the weekend. It also was disclosed that AIG used $90 billion-plus in federal aid to pay foreign and domestic banks, some of which had received their own multibillion-dollar U.S. government bailouts.
The recipients included Goldman Sachs, at $12.9 billion, and three European banks — France's Societe Generale at $11.9 billion, Germany's Deutsche Bank at $11.8 billion, and Britain's Barclays PLC at $8.5 billion. Merrill Lynch, which also is undergoing federal scrutiny of its bonus plans and which is now part of Bank of America, had received $6.8 billion as of Dec. 31.
The money went to banks to cover their losses on complex mortgage investments, as well as for collateral needed for other transactions.
An investigation will determine whether the employees were involved in the company's near collapse and whether the $165 million in bonus payments were fraudulent under state law.
Outcries against the company have also come from congressional leaders. People are most angry with banks and companies for "recklessness and greed".
While the economy suffers, How do they justify this outrage to the taxpayers who are keeping the company afloat? This isn't just a matter of dollars and cents. It's about our fundamental values.
The public probably never would have known had it not been for??? People don't know the first thing about credit default swaps. But they do know about bonuses.
Yet, there is heavy resistance to Obama's Economic Stimulus Plan. The current debate in Washington over President Obama's budget, making the necessary reforms and investments in energy, health care, and education; has made one thing clear -- ensuring our long-term prosperity won't come without a fight.
That's why we need to bring the conversation back into homes and communities across America. Host or Attend a Pledge Project Canvass the weekend of Saturday, March 21st.
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