AIG Tower
1 Connaught Road
Central and Western, Hong Kong, China
German and French banks got $36 billion from AIG Bailout (click here)
Posted by: Michael Mandel on March 15
Posted by: Michael Mandel on March 15
...I added up the various lists provided by AIG by country (see below), and the results were quite revealing. About $44 billion went to counterparties headquartered in the U.S., such as Goldman Sachs and states such as California and Virginia.
But as I expected, the majority of the funds—$58 billion—went to banks headquartered outside the U.S. The big winners were French and German banks, which pulled in $19 billion and $17 billion respectively....
But as I expected, the majority of the funds—$58 billion—went to banks headquartered outside the U.S. The big winners were French and German banks, which pulled in $19 billion and $17 billion respectively....
So, Goldman Sachs not only repurchased $2 billion of their stocks, they also took TARP funds directly and recieved enormous amounts of monies from AIG. It is really starting to smell bad, wouldn't you say?
...Between 16 September and 31 December last year (click here), Goldman received $2.6bn in collateral from AIG Financial Products - which in turn had been provided by the Federal Reserve - on credit default swaps (these are a kind of insurance against borrowers defaulting on loans, which are frequently used as a way of speculating on the health of businesses or other creditors).
There were subsequent payments to Goldman of $5.6bn, to purchase from it the securities underlying certain credit default swap contracts.
And there was a transfer to Goldman of $4.8bn to fulfil commitments under securities lending agreements.
So the gross sum received by Goldman from the US Federal Reserve, via AIG, was $13bn....
There were subsequent payments to Goldman of $5.6bn, to purchase from it the securities underlying certain credit default swap contracts.
And there was a transfer to Goldman of $4.8bn to fulfil commitments under securities lending agreements.
So the gross sum received by Goldman from the US Federal Reserve, via AIG, was $13bn....
Of course, selling of the 'insurance' arm of AIG will permit some revenue that isn't from the USA Treasury, but, will it cause a disproportionate loss in its 'securities' branch once its profitable insurance block is gone? Who is making the decisions to sell and is the USA Treasury and SEC recommending this? It seems a loss of the insurance branch of AIG will destabilize the company UNLESS the rest of the company can prove solency with the sale.
AIG names beneficiaries of its U.S. rescue
6:52 PM, March 15, 2009
6:52 PM, March 15, 2009
...The company said it shelled out nearly $100 billion in the final few months of the year to satisfy some of the contracts it had outstanding. The beneficiaries included major foreign banks such as Germany's Deutsche Bank and France's Societe Generale, as well as U.S. titans Goldman Sachs Group and Merrill Lynch & Co.
U.S. municipalities, including some in California, also benefited as AIG settled up payments due on guaranteed investment agreements, under which states, cities and other municipalities temporarily park funds raised from bond sales....
U.S. municipalities, including some in California, also benefited as AIG settled up payments due on guaranteed investment agreements, under which states, cities and other municipalities temporarily park funds raised from bond sales....
