Also see: AIG Receives MORE Bailout Loot
The AIG Honey Pot
"AIG gets $20.9b more through Fed program" by Bloomberg News | October 31, 2008
NEW YORK - American International Group, the insurer with a $122.8 billion credit line from the United States, got an additional $20.9 billion under the Federal Reserve's commercial paper program designed to unlock short-term debt markets.
Four affiliates of the insurer participated in the program, which swaps commercial paper for cash, AIG spokesman Nicholas Ashooh said. The proceeds will help refinance AIG's outstanding commercial paper and pay down AIG's original $85 billion loan from the Fed, the firm said in a regulatory filing.
So what are they doing? Selling the government bad paper (bought with taxpayer dollars), then using that $$$ to pay the taxpayer back? Why do I see shells moving in front of my eyes, readers?
"They're paying off a Fed loan with another kind of government subsidy - it's like using one credit card to pay off another," said Robert Haines, an analyst at CreditSights Inc.
Chief executive Edward Liddy said on Oct. 22 the insurer may need more than the $122.8 billion that was available to it.
AIG joined a growing list of borrowers that have sold tens of billions of dollars of the short-term debt to the central bank as credit became more difficult to obtain. --more--"
It is ALL being done ON PURPOSE, readers!!