AIG, in which the government has so far taken over 80% in stake, has moved from one bailout to another and there is no end in sight even after receiving capital infusion of $180 bn in four tranches - $90 bn in two loans, $40 billion purchase of preferred shares and $50 billion to soak up the company’s toxic assets (more here). A nice chronicle of the AIG crisis is available here.
NYT carries this excellent graphic outlining the story of AIG.
The bailout story is outlined below
And the controversy on bonus payouts is captured below
And the list of all its trading partners, who benefitted from the government bailout, is available here.
And in response to the hugely unpopular $165 m bonus payout by AIG, the US House of Representatives passed a legislation imposing 90% tax on on bonuses paid this year to traders, executives and bankers of AIG and other firms that have accepted large amounts of federal bailout funds and who earn more than $250,000. The legislation would apply to bonuses paid to executives at companies holding at least $5 billion in bailout money and would essentially wipe out the phenomenal paydays that have been a tradition on Wall Street, at least until the firms reduce the amount they owe taxpayers to less than $5 billion.