Any Doubt

About who’s really in charge of this country?

WASHINGTON — At the peak of the 2008 financial crisis, then-Treasury Secretary Henry Paulson and top Federal Reserve officials told the nation that there was an urgent need for the government to lend $85 billion to the American International Group so the giant insurer’s temporary cash squeeze wouldn’t trigger global financial chaos.

Nearly two years later, taxpayers are on the hook for twice that amount, and it now appears that Paulson and senior Federal Reserve officials either plunged ahead without understanding AIG’s financial situation and the risks it posed to taxpayers — or were less than candid about one of the largest corporate bailouts in U.S. history.

AIG reported combined total losses of $110 billion in 2008 and 2009, erasing any doubt that the government stepped into a colossal mess.

One thought on “Any Doubt

  1. What little I read (Arthur Silber had an informative piece, as I recall) said that AIG had its fingers in so many corporate and government pies worldwide that it was impossible for the government NOT to bail them out.

    I also read that Henry Kissinger was deeply involved with the company. So I’m guessing that the answer is (b): the government is not being completely candid about its actions regarding AIG.

    So I’m going to have another glass of wine.

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