Actually the 50 bil went to Goldman-,Deutsche etc. to settle losses-The truth about AIG comes to the open

The point is it runs under AIG and they are responsible for selling those Hedges but at the end who gets bailed out are different institutions. The ugly part of this 50 bil. is they never come back as that are losses AIG made with this counterparts and the taxpayer pays for the settlement of the losses – that is outrages since it is money thrown out of the window. In the financial industry you have a so called counterpart risk so making the right bet is one thing but to choose a counterpart which can pay its obligations is another. The government was never obliged to stand up for the losses and paying them that money is nothing but an aid to that firm hence Goldman received a 6 bil each aid as did Deutsche amongst many others and the taxpayer has no benefit from that at all. In context of bonus payments that’s even more disgusting. Its despicable how wallstreet gets bailed out and the taxpayer gets double screwed. This practice is now part of Obama’s admin. as well and shows where we stand when it comes to prudence and change.

Its about time for a real ‘Boston tea party’ as taxpayers good money is thrown still at the wrong places.

Top U.S., European Banks Got $50 Billion in AIG Aid

By SERENA NG and CARRICK MOLLENKAMP

The beneficiaries of the government’s bailout of American International Group Inc. include at least two dozen U.S. and foreign financial institutions that have been paid roughly $50 billion since the Federal Reserve first extended aid to the insurance giant. Among those institutions are Goldman Sachs Group Inc. and Germany’s Deutsche Bank AG, each of which received roughly $6 billion in payments between mid-September and December 2008, according to a confidential document and people familiar with the matter. Covered Counterparties Some banks that were paid by AIG after it was bailed out by the government * Goldman Sachs * Deutsche Bank * Merrill Lynch * Société Générale * Calyon * Barclays * Rabobank * Danske * HSBC * Royal Bank of Scotland * Banco Santander * Morgan Stanley * Wachovia * Bank of America * Lloyds Banking Group Source: WSJ research Other banks that received large payouts from AIG late last year include Merrill Lynch, now part of Bank of America Corp., and French bank Société Générale SA. More than a dozen firms with smaller exposures to AIG also received payouts, including Morgan Stanley, Royal Bank of Scotland Group PLC and HSBC Holdings PLC, according to the confidential document. The names of all of AIG’s derivative counterparties and the money they have received from taxpayers still isn’t known, but The Wall Street Journal has identified some of them and is publishing others here for the first time. Lawmakers Want Names The AIG bailout has become a political hot potato as the risk of losses to U.S. taxpayers rises. This past week, legislators demanded that the Federal Reserve disclose names of financial firms that have received money from AIG, which Fed officials have described as too systemically important in the financial system to be allowed to fail. In a Senate Banking Committee hearing in Washington on Thursday, Fed Vice Chairman Donald Kohn declined to identify AIG’s trading partners. He said doing so would make people wary of doing business with AIG.

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~ by behindthematrix on March 9, 2009.

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