Friday, December 25, 2009

MSM Xmas Gifts: To AIG and GMAC

From the American Taxpayer:

"Four finance giants still wallow in debt; Firms may have to draw new US funds to pay bills" by Mary Williams Walsh, New York Times | December 17, 2009

NEW YORK - Even as the biggest banks repay their government debt in what is being heralded as a successful rescue program, four troubled giants of the financial world remain on government life support.

These companies, American International Group, Fannie Mae, Freddie Mac and GMAC, are not only unable to repay the government, they are in need of continuing infusions that make them look increasingly like long-term wards of the state.

Yeah, you WON'T BE SEEING any of that lot ever again, America.

Related: Government Passes the Bucks on AIG

Government Takes Over GMAC

Lying Looters Large and Small: AIG's Excesses

MSM Xmas Gifts: To Fannie and Freddie

So that's what they did with the bailout $$$, huh?

And the total risk they pose to the taxpayer exceeds that of the big banks.

Translation: You are screwed, America.

Fannie and Freddie, in the final days of the year, are even said to be negotiating with the Treasury about greatly expanding the money available to them.

Treasury approved.

Though the four are not all in the same businesses, they were caught in one of the same traps: They sold mortgage guarantees - in some cases to each other. Now when homeowners default, as they are doing in record numbers, these companies are covering the losses. Essentially, taxpayer money to these companies is being used partly to protect banks and other investors who own the mortgages.

Yeah, the BAILOUT is for BANKERS, America, NOT YOU!!

I think you know that after the year that has passed.

Like the big banks, these four companies would no doubt prefer to be free of government assistance, which comes with pay and other restrictions on their executives. But they appear at risk of getting onto a debt merry-go-round, where they have to draw new money from the government just to keep up with their existing government debts. Fannie Mae recently warned, for example, that it could not pay the dividends it owes the Treasury, so “future dividend payments will be effectively funded with equity drawn from the Treasury.’’ All the companies have recently drawn fresh money from the government or are in talks to do so.

Isn't that like using one credit card to pay off another? How is that helping you, America? Still seeing record foreclosures and job losses with no end in sight!

Capital commitments from the Treasury do not capture the full scale of government aid. The government has also bought mortgage-backed securities and guaranteed corporate bonds, while the Federal Reserve Bank of New York has made an emergency loan.

Translation: the government bought crap with your bailout loot, America.

Timothy F. Geithner, the Treasury secretary, welcomed the repayment plans from Citigroup and Wells Fargo this week, saying the actions by the biggest banks mean taxpayers are “now on track to reduce TARP bank investments by more than 75 percent.’’ That means that of the $245 billion awarded to banks, more than $185 billion is either recovered or is about to be.

Related: MSM Xmas Gifts: To the American Public

MSM Xmas Gifts: To Wall Street

Banker's Slush Fund

Oh, you aren't even getting the repayments back, America!!!

But that is just a fraction of the money the four troubled debtors have received or may still get. Together, they have been offered nearly $600 billion, and that lifeline could climb to nearly $1 trillion if the commitment to Fannie and Freddie is doubled, as some predict. What’s more, the companies seem short on strategies for going it alone.

Oh, so you are going to be OUT a TRILLION DOLLARS on these four alone, huh, America! And the MSM and government have the gall to claim Americans profited from the bailout?

A spokeswoman for GMAC said the company has made all its scheduled dividend payments to the Treasury, as has Freddie Mac. Fannie Mae has said it will have trouble paying its dividends; AIG does not have to pay them.

Why is AIG exempt?

A spokeswoman for AIG said the insurance company is committed to repaying taxpayers, but repayment will depend on market conditions. A Freddie Mac spokesman said the company depends on continued support from the Treasury to stay solvent.


Wow, you really splurged on the banks this year, American public.