Oct 8, 2008

AIG Post Bailout Spa Scandal Explained

Can you guess where the taxpayer promised $85 Billion to AIG is being spent? I cannot. But I saw this news article on yahoo, an excerpt from which says:
As of Sept. 30, AIG had drawn $61 billion on the credit facility, of which about $54 billion has gone toward its securities lending and AIG's financial products area.

The rest of the money has been for other liquidity needs amid an "unprecedented" freezing of credit markets, Chief Executive Edward Liddy said last week.
Now, we have all been beaten to death with the St. Regis luxury spa scandal news, so I won't joke about resort spending here. In fact we are talking only $440,000, which is a mere 0.00052% of the bailout amount offered to AIG. Come on people, stop complaining so much about an event at a posh, luxury resort.

It was not a gala bash to celebrate AIG's survival from bankruptcy. It was an event to treat insurance agents.

Wait, what are you saying: 440, 000 can provide for 2-3 comfortable homes, maybe the college education of 2 young adults, 10-20 cars depend on what you pick.

Disclaimer: Ok, I will make one thing clear. I am here to just join the bandwagon and bash AIG, because, it is fun, right now.

It is a faceless corporate entity, which by very definition, protects all the management and employees from any liabilities for conduct that cannot be clearly proven as bad, for the lack of a better legal term. So there, I am not bashing people, I am just bashing a 'corporation'.


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