Tuesday, March 17, 2009
With $170 billion invested in AIG we (the American people) own the company. We own 80%. If we are the owners of the company doesn't that give us the right to terminate the contracts of the CEOs and other "top" management. I'm sure they might have golden parachutes but why let these criminals steal any more by taking yet more of our money to line their pockets. We could use another approach. That would be to split the company into parts and let the weak elements fail. That's the way other big companies get out of difficult situations. By doing that the bad guys don't win. They don't get bonuses.
Oh and here's some other great news if you didn't catch it. We the taxpayers paid for this bail out twice. Goldman Sachs we bailed out once before then AIG gives them $12 billion.
I also wonder if we ever got back the $10 billion we lent to the airlines right after 9-11. I'll bet not.
Update: My blog buddy Crum informs me that yes indeed the airlines did payback their loan and the taxpayers did profit. Now let's see if the banks and AIG can follow suit.
The Chrysler and airline bailout plans had a commonality: stock warrants. A provision inserted into the ATSS Act, which allowed the Treasury to purchase stock at below-market prices from any airline receiving a loan guarantee, allowed the Treasury to earn money. Reports varied on the total net profit, ranging from $141.7 million to $327 million. The loan guarantee program suffered one loss of about $23.2 million when ATA Airlines filed for bankruptcy protection.