GAO: Treat Big Money just like Big Auto
The U.S. Treasury should demand that American International Group Inc., the insurer rescued by taxpayers, seek concessions from employees, creditors and derivatives counterparties* as a condition of its aid, the Government Accountability Office said.
“Treasury could require that AIG seek to renegotiate contracts with its employees, similar to the contract for retention bonuses with AIG Financial Products’ employees, and with existing counterparties that would face substantial losses were AIG to have its credit downgraded or fail,” the GAO said.
“If such concessions are not considered to be in the government’s interest, the reasons should be clearly articulated and explained,” it said.
A group of 27 lawmakers last week called for a federal probe into whether AIG should have been forced to renegotiate its counterparty contracts with Goldman Sachs Group Inc. and other banks.
The U.S. has propped up New York-based AIG four times, with total aid now valued at $182.5 billion, since September after a cash shortage left the insurer unable to back up protection sold to banks on their fixed-income holdings.
You know, there are times when it seems that only the Obama adminitration doesn't get this.
Well, and the Republicans, of course, but we never had any hope for them.
The Obama administration shouldn't be asking union retirees to give up one fucking cent while all the gamblers on Wall Street getting their payouts one hundred cents on the dollar. It's unconsionable.
NOTE * When we the people bailed out AIG, AIG promptly turned around and paid what we gave them to its creditors -- the so-called "counterparties" who were gambling on derivatives contracts with AIG (who lost, thus having to pay out). And they paid out one hundred cents on the dollar. So, while contracts with banksters are sacred, contracts with unions are not. And while you can play in the Big Shitpile and expect to be paid in full, you can work for GM for thirty years and have your benefits cut -- even though you paid in every paycheck to get them.
Plus ça "change," plus c'est la même chose...