AIG Dealings Continue

So the AIG saga is not done yet. With some deft political manoeuvrings, Maurice "Hank" Greenberg is trying to get a sweeter deal for AIG's lifeline from the govt. AIG and its shareholders are trying to get a share of the $700 billion fed money.
This news report from CNN.COM covers the issue in more detail.

To get their share of the bailout money, there has been speculation that AIG was using some of the $85 billion money to continue its lobbying. Of course, AIG officials said they are not using Fed money to lobby. But if they have other money available to do stuff like lobbying, why are they asking for bailout money to begin with. Can somebody please explain this to me? (it is a rhetorical question, do not waste your energy trying explain, there is nothing to be explained there. Chill out.)

AIG common stock definitely jumped up well on Thursday evening and Friday, because as we all know, some people usually get the news before it comes in the newspapers.

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'.

AIG - POST BAILOUT Spending Excesses

Now comes news that executives at the government funded, taxpayer supported American Insurance Group (AIG) have managed to treat themselves to close to half million ($440, 000) dollars of spa treatments in a California resort.

This has happened a WEEK after the $85 billion bailout. AIG stock has taken a beating (and crashed) and then bounced back, but actions like these are not good for any left-over shareholders or the taxpayer or anyone holding insurance with AIG.

Fox Business also has put up the copy of the bill (a scanned copy as a pdf file) here.
The news article says that the executives who were at the resort were from the profitable divisions of AIG, but still...

Hello, who is the CEO now, Henry Paulson/president Bush, Neel Kashkari.. who is it?
Or is it you, john/jane doe taxpayer?

The link to the fox article: http://www.foxnews.com/story/0,2933,434223,00.html
I am neither long nor short on AIG common stock or any derivatives.

----POST ENDS HERE-----