Wednesday, June 9, 2010
HANK PAULSEN'S 2b2F IBG YBG ICEBERG
McLatchy--At the peak of the 2008 financial crisis, then-Treasury Secretary Henry Paulson and top Federal Reserve officials told the nation that there was an urgent need for the government to lend $85 billion to the American International Group so the giant insurer's temporary cash squeeze wouldn't trigger global financial chaos.
Nearly two years later, taxpayers are on the hook for twice that amount, and it now appears that Paulson and senior Federal Reserve officials either plunged ahead without understanding AIG's financial situation and the risks it posed to taxpayers - or were less than candid about one of the largest corporate bailouts in U.S. history.
AIG reported combined total losses of $110 billion in 2008 and 2009, erasing any doubt that the government stepped into a colossal mess.
Read more: http://www.kansascity.com/2010/06/08/2002541/to-justify-aigs-bailout-regulators.html#ixzz0qLQADHZ9