Daily Archives: March 21, 2009

At $218 Million, AIG (AIG) Bonuses Higher Than Originally Believed

aig2There was at least some chance that the furor over $165 million in bonuses paid to AIG (AIG) employees might die down this upcoming week. Because the insurance company got tens of billions of dollars in US aid, the American taxpayer essentially paid those bonuses.

Cooler heads have tried to make the point that it is time to move past AIG and put more energy into the larger process of fixing the financial and credit markets. The hope that Congress and the public might focus on the bigger picture may be derailed by the revelation that the bonuses paid were actually $218 million, according to the Connecticut Attorney General’s office. Read More »

Posted on: March 21, 2009 – 9:51 am in Law, Politics,

Treasury Plan For Buying Toxic Assets Is Complex Beyond Belief

cammonopoly_wideweb__430x32508If The Wall Street Journal’s description of the Treasury’s plan to get toxic assets off of bank balance sheets is correct, it may be the most complex set of programs in the history of the federal government.

According to the paper, “the framework, designed to expand existing programs and create new ones, relies heavily on participation from private-sector investors.” Read More »

Posted on: March 21, 2009 – 8:02 am in Banking

Wholesale Credit Unions Seized

uncle-sam2Two very large wholesale credit unions were taken over by the government, extending the scope and expense of the bailing out of the US financial system. It is another example of the number of “unanticipated” costs of keeping the credit markets from seizing up entirely.

According to MarketWatch, National Credit Union Administration said Lenexa, Kan.-based U.S. Central Federal Credit Union and San Dimas, Calif.-based Western Corporate were placed into conservatorship “to protect retail credit union deposits and the interest of the National Credit Union Share Insurance Fund.” Read More »

Posted on: March 21, 2009 – 7:41 am in Banking