Ed Liddy, the man who took over the reins of AIG the failed insurance giant to which the government has made $180 billion available in aid speaks to Steve Kroft about the gargantuan task ahead.
Ed Liddy did a great job, stabilized the company and put a plan in place to repay the government and tax payers after his departure. AIG paid the entire 182 billion back with interest in 2012.
*Josh Gorman* And I’m sure that, if they had been left to fail, you’d be bitching about how the government sat on their hands as the real economy and the global economy burned. The interest rate for AIG is reported to have been about 15% by the way. And the Fed had control of almost 80% of AIG’s assets, so they were able to change out the management and had absolute veto power during the crisis.
*Josh Gorman* We socialized the loan, not the losses. The government profited tens of billions from AIG after they paid back the bailout with interest to Uncle Sam
People who should have faced huge humiliation , personal bankruptcy and jail time ...... instead walked away with $32 MILLION cash leaving packages !!! It's unbelievable .
Thank you Mr.Bolton for releasing your manuscript to the NYT. Before this I was going to start a BAN THE BOLTON BOOK movement. Now I will be a HUGE advocate for your sales. Yes QUID PRO QUO.
Stellarspace they should make profit when they do not defraud consumers with the products and services they provide. Way too many people accept the criminal behavior as part of the Wall Street identity. We glorify it in movies and fawn over hedge fund managers that show us their million dollar houses. They and it is crime no different than the mafia, a drugstore robbery or a hit and run. There should be capital punishment for anyone that steals more than $50k. Bottom dwellers.
*KingSlimjeezy* Sorry, do you ever get a money check from the government other than through tax returns? You got that money back through better welfare funding like the housing program that kept millions from losing their homes (HARP).
So what would your answer to this situation be? Fail the economy? I mean it's clear they're crooks, but what is the alternative to a bailout? We're talking hundreds of billions of dollars
Yeah, the US government. Not only did it stop the economy from collapsing, the government, in selling off their equity over time, has *profited* $23 billion from its massive investment
They said AIG was too big to let fail, I say just too damn big and too big to not let fail. Either way the average person gets it in the rear. I would rather take the hit and have nobody get rewarded for the corruption that that caused the mess.
The "Bond Market Association" (Now SIFMA), developed marketing materials for CMO's, and nowhere in these was the risk of "default". The days after the collapse, all marketing materials were amended to include the risk of mortgage default. I have an original. The Bond Market Association was so, integrated into the government, that government officials came to the office.
They had to encourage their traders to stay with the firm so they could wind down their business. If they didn't give out bonuses, everyone would have just abandoned the firm and it would have been stuck with no skilled traders to sell their assets.
Then you're no better than the bankers. You and they (and their DemParty cronies) are parasites who borrow, then expect me and ALL THE REST OF US Americans to PAY FOR your bad decision.
The executives that brought this company down should have been fined and had their assets taken, just as many pension plans lost so much of recent and current retirees fund's
Like the dude who was appointed to run AIG in order to stabilize the volatile entity that’s failure would result in tens of thousands of businesses collapsing on the salary of $1/yr?
The Credit Default sales are a large area of what goes wrong ina bank tgar size. Tgese foreign customers kmow Americzn insurance companies fund the loss and liabilities.
The issue with that is that AIG insured many securities in our pension funds. Without AIG's insurance, these instruments wouldn't have been considered "investment grade.". This change in rating would have required all pension funds (by law) to sell those risky instruments and we would have a more massive sell off that would have obliterated the middle class's retirement funds.
I just don't understand one thing (someone please explain me). If the government bailed out banks and these securities companies, why did the people lose homes? Were not their debts with the bank effectively written off? (our government recently wrote off some debts by paying the banks what people with blocked account couldn't)
People were over leveraged without even knowing and when unemployment started hitting hard people couldn’t even afford car notes / mortgage …. Which caused foreclosure which than caused the banks/ mortgage lenders to want there capital back as home value kept declining…. A lot more happened it like a domino affect
@@dondatrader5609 Yeah. Still, my point was, if the government already intervened and used taxpayer money to bail out banks, It's not really fair that people still lost homes and banks remained the owners of those homes.
In any other country, AIG would have been out of business. There were other companies in similar positions and that's how we became the biggest socialist country. Businesses could not support themselves, they were financed and owned by the government.
I dunno who made the decisions regarding who and what they would insure. Most people have no clue. How many people know who insured the Deepwater Horizon? AIG. Not a good record.
We need regulation. I've worked with and talked to people betting on subprime mortgages, most of them didn't think they would fail. They rely too much on financial models and also they have so much power that when they make a mistake they cant just learn from it and move on with minimal damage, they wreck the economy.
AIG is a prime example of stupidity and greed or greed and stupidity. They just had to jump onto the sub-prime mortgage wagon with no understanding of where it was going or how it was going to get there.
Some here say that living under a dollar a day is not acceptable to be considered in the group of rich persons in the country. A professional foreign advice can cost $ 100 USD an hour o more depending on the project.
There's so many anti-corporate sentiments in the comment section. It's almost as if people absolutely believe that they'd be better off without them. Let's try that one day and see what it gets you.
He should have torn a page out of Marvel and Gave them a Tony Stark salute. Congress repealed the savings and loan laws that separated them from commercial banks to make the S&L scandals go away. Then the Real Estate market went corrupt and the vultures came home to roost.
*baby voice* it's so haaaaaard running a billion dollar bank. why does the government bully meeeeeeeee? We almost destroyed America but we said we're sorrrrrrry.
We paid for AIG, but we don't own it. Profits are privatized while losses are socialized. Always have been, always will be. This video is pure propaganda, as always.