Chutzpah Time: AIG Board Of Misdirectors Want To Sue US People For Bailing Out Their Ass…ets

We all know the story about the scorpion that rides the back of the animal crossing the river and in thanks, stings it.  The gnomes on Wall Street who ran shrieking in fear of the exploding Derivatives Beast were rescued by both Bush Jr. and Obama and of course, the Wall Street money tool, the Federal Reserve.  I was at the TARP hearings in DC.  And boy, was it a doozy.  We were told, if we didn’t save the richest bastards on earth, we would see budget cuts and Social Security collapse and all sorts of things…ha.  Right.  We saved the bastards and all the bad things are happening anyways, of course, these bad things are directly caused by the bail outs.  And what did we get in return?

Rescued by a Bailout, A.I.G. May Sue Its Savior –


The board of A.I.G. will meet on Wednesday to consider joining a $25 billion shareholder lawsuit against the government, court records show. The lawsuit does not argue that government help was not needed. It contends that the onerous nature of the rescue — the taking of what became a 92 percent stake in the company, the deal’s high interest rates and the funneling of billions to the insurer’s Wall Street clients — deprived shareholders of tens of billions of dollars and violated the Fifth Amendment, which prohibits the taking of private property for “public use, without just compensation.”


Yes, they are tempted to join this lawsuit so they can get even more money from us.  Charming.  These demented shareholders and the board of misdirectors who played an obvious con game pretending to insure derivative contract deals…with no capital to cover losses!  This is a fraud and I said back then, they should all lose everything and be put in prison for being con artists exactly like Madoff.


But they are at large and fighting their savior who thoughtfully rescued them and bailed them out at great risk to the entire nation. We see this everywhere, in Europe, in England, in Japan: bailing out, capitalizing, funding and not taxing the rich bastards who return this favor by offshoring jobs, stealing stuff and lending money with no capital, etc.  They are looters and cheaters.


And have zero sense of shame.  Time to review just a few of past article I have written about this stupid, worthless bail out of a bunch of wretched con artists.  From 2009:  WE EXAMINE THE LIST OF AIG’S BAIL OUT MONEY RECIPIENTS | Culture of Life News

FACTBOX: Top 10 largest recipients of AIG money | Special Coverage | Reuters


Total Payments to Top 10 $73.1

$10 billion more than Madoff ripped off!  Heh.

1.  Goldman Sachs Group $12.9

The #1 crook operation in the US.  These guys control many parts of our government and ran the Treasury into the ground.  The first AIG bail out was sponsored by the  Goldman Sachs criminal, Mr. Paulson.  Naturally, he benefitted from all this.

2.  Societe Generale 11.9

The bank with the Sorcerer’s Apprentice who lost all that loot. Someone had to insure them!  So viola!  They got all the money back which they lost due to incompetence, incredulity and laziness.

3.  Deutsche Bank 11.8

This bank was just as ridiculously run as Societe Generale.  The Germans have fallen far, far below their normal levels of stingy carefulness.  They got burned and deserved it.  Now, we taxpayers in the US are fixing messes they created or saving them from bad deals they could have avoided by being somewhat more careful and smarter.

4.  Barclays PLC 8.5

Another foreign bank who is being bailed by us.  We pay a very high price for our lovely trade deficit, don’t we?

Barclays tax dodge ‘nets £1bn a year ’ – Times Online

The documents — seen by The Sunday Times — detail a trail of transactions allegedly created to legally avoid tax by a team within Barclays Capital, a subsidiary of the bank. One 2007 scheme, named Project Valiha, was allegedly designed to help Barclays save £99m in UK tax by embarking on a rapid series of transactions across just three days and involving a Swiss bank and companies in the Cayman Islands and Luxembourg.

5.  Merrill Lynch 6.8

One of the major derivatives beast’s feeders.

6.  Bank of America Corp 5.2

Call them ‘BankRUPT of America’.  These criminals who flooded the bond markets with loans to deadbeats and who encouraged the overinflation of US real estate markets should return this money to us.  And go off and die.

7.  UBS AG 5.0

This is why UBS finally released the names of all the criminal tax cheats.  They got $5 billion of OUR tax money to keep their stupid, inept business afloat.  Another foreign freeloader.

Orange County Business Journal Online

Igor Olenicoff long has been one of the biggest names in Orange County real estate. Now he’s something of a global media star for his crusade against the world’s largest investment bank for the wealthy. 

Olenicoff’s at the center of a growing global firestorm surrounding Switzerland’s time-honored, secretive banking system. He’s become a big thorn in the side of the country’s largest investment bank, Zurich-based UBS AG.

If not for Bernard Madoff and the ongoing tumult in the global banking system, the row Olenicoff has helped to ignite over Swiss banking laws would be the finance story of the year.

It’s still a front-page story here and in Europe, complete with bickering governments, secretive offshore dealings and plenty of bombshell allegations.

8.  BNP Paribas SA 4.9

Another foreign entity leeching off of us.  This week, they are the main sponsors of a nifty tennis tournament in California.  Let the games go on!  Who cares, if they are not paying for this fun!

9.  HSBC Holdings PLC 3.5

From Friday:

Probe Into HSBC Shares –

The Securities and Futures Commission has launched an investigation into whether HSBC Holdings PLC’s 13% drop during Monday’s closing auction was caused by market manipulation. The bank’s shares extended their rebound in Hong Kong for a second day Wednesday, the last day for investors to buy or hold shares to participate in the HSBC’s US$17.7 billion rights issue… HSBC tumbled 24% to close at 33 Hong Kong dollars (US$4.25) Monday, with a little more than half of the fall occurring during a brief closing auction that takes place daily before a closing price for the session is calculated. Wednesday, the shares rose 2.3% to HK$38.45, adding to Tuesday’s 14% jump. / Companies / Banks – HSBC and BNY Mellon sued over ‘minibonds’

A group of investors has sued HSBC and Bank of New York Mellon, alleging that the banks failed to protect Hong Kong buyers that bought into complex derivative instruments known as “minibonds” linked to the now defunct Lehman Brothers.

The class-action lawsuit filed in New York calls for $1.6bn of collateral held by HSBC and BNY Mellon to be released to investors. Minibonds have lost most of their value since the collapse of Lehman…

“The trustee failed to protect the collateral backing the minibonds. The issuer failed to execute the terms of the deal so that the promised high-quality collateral would be purchased and safeguarded, and also failed to give notice of negative information about the derivatives underlying the minibonds,” according to the complaint.

Everyone is suing everyone else over this derivatives junk business!  And the people who are now bankrolling these idiotic derivatives are you and I: the US taxpayers.

10.  Dresdner 2.6

The Associated Press: Dresdner Bank unit pushes Allianz to big loss

Feb 26, 2009

Insurer Allianz SE on Thursday reported a euro3.1 billion ($4 billion) fourth quarter loss, citing heavy costs related to its recently sold banking unit Dresdner Bank.

The fourth quarter shortfall compared with a profit of euro665 million a year earlier and was weighed by a euro3 billion loss on discontinued operations — largely the results of Dresdner Bank and its sale to Commerzbank AG, completed last month.

SIX Swiss Exchange Fines Dresdner Bank AG London Branch

The SIX Swiss Exchange participant Dresdner Bank AG London Branch violated SIX Swiss Exchange’s rules concerning reporting of off order book transactions. The Sanction Commission of SIX Swiss Exchange has therefore imposed a fine against Dresdner Bank AG London Branch in the amount of CHF 100,000 and ordered that the sanction should be published.

Art. 5 of the Swiss Federal Act on Stock Exchanges and Securities Trading (SESTA) concerns publication of all information necessary for transparency in securities trading. Among other things, this also applies to information pertaining to the volume of securities. For that reason, the participants of SIX Swiss Exchange must immediately report all off order transactions so that the Exchange can also publish those trades – as well as the on order book trades. The General Conditions of SIX Swiss Exchange provide for certain instances that a participant may have off order book transactions published delayed by two trading days if the requirements of SIX Swiss Exchange Directive 11 are cumulatively fulfilled: the transaction must be in equity securities, have a specified minimum size and lead to the opening of a nostro position. In justified cases and upon prior consultation with SIX Swiss Exchange, the publication may be delayed by five trading days. The participant must designate any such trades that have to be published delayed with a special code (B2 or B5).

Another foreign bank that needs our money to stay afloat.  


Unfortunately, not one penny of the TALF bail out funds or the AIG money that was bundled up by the multibillion, has been sovereign funds.  Incidentally, our FOREX holdings are LESS than this amount!  Indeed, to give us perspective here, Madoff’s rip off deals was about exactly the same amount as the world’s #1 economy has in its FOREX holdings: $65 billion, more or less.



The massive scale of these frauds pale in comparison with the Derivatives Beast.  Fulfilling various bets placed in that goofy insurance system that supposedly fixed ‘risk’ is driving the US dangerously deep into debt in the near future. The OTC deals are immensely dangerous, on top of everything going wrong.



Inside of all this are many, many crimes.  It was a free-for-all which is not free for us: we get to pay the price and the looters get to leave with their ill-gotten gains.  This is immensely dangerous.  Telling us, if we punish these so-called ‘bankers’, our economic system will collapse!



This is INSANITY.  They and only they collapsed the entire system, themselves.  We didn’t do this to them.  If we want it fixed, we must first put the fear of god in these atheistic creatures so they dare not do this ever again.



AIG Discloses $75 Billion in Bailout Payments –


More than $34 billion of the money went to trading partners of AIG Financial Products, the small subsidiary whose exotic derivatives brought AIG to the edge of collapse. In recent years, the firm had written massive numbers of credit-default swaps, insurance-like contracts that other companies bought as protection against the default of mortgage-backed securities. When the housing boom began to go bust, banks that had purchased the swaps demanded collateral from AIG, burying the company under a tidal wave of debt. Federal officials, wanting to keep the company from failing because they feared it was too intertwined with the global economy, stepped in to help.

This is so stupid.  Always, they claim these dinosaurs are too big to go down.  Why, we might have a global depression!  Well, we are having a global depression and I fail to see how bailing out a bunch of crooks using future tax revenues is going to fix anything at all!

If we were having minor difficulties, it is no big deal, bailing out people.  If the US had a sovereign wealth fund the size of China’s money, we could foolishly do this.  But the fundamentals here are the fact that the US economy is in jeopardy due to too much public debt coupled with a too-big trade deficit.

The ONE THING we cannot drive deeper into debt is our government or our trade!  These are the two things in dire need of fixing.  AIG is not our government.  It is not our economy.  It is not even American.  It is an international business set up to make a very tiny number of people, very rich.

It failed in its mission.  The insurance arm that insures trade, municipalities and actual businesses should be separated from the derivatives/trade part and we will bankroll honest, realistic insurance and all the OTC games can go to HELL.  Having us bail out banks playing OTC derivatives games with each other is OUTRIGHT WRONG.


In the last months of 2008, AIG Financial Products paid more than $22 billion in taxpayer money to satisfy debts caused by its swap contracts. Another $12 billion went to pay off municipalities in dozens of states for whom the firm had created complex investment agreements.

Nearly $44 billion went to pay debts that AIG incurred under its “securities lending” program, according to the company. In those instances, various companies borrowed securities from AIG in exchange for cash. In turn, AIG invested much of the money in mortgage-backed assets that plummeted in value, leaving the insurer on the hook for billions….

The $44 billion AIG lost in this game is a classic example: any organization this inept deserves to be ruthlessly eliminated.  It should have been put under strict controls 10 years ago but it is too late for that.  It is already bankrupt.  We ‘fixed’ this by insuring that WE, the entire US nation, will have to go bankrupt, instead.  I find this deal stinks, obviously.  There is no reason for this.


“This is an example of people at the commanding heights of the economy misbehaving, abusing the system,” said Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee.

Their anger stemmed in large part from AIG’s decision to move forward with retention bonuses for executives at the troubled Financial Products unit. In early 2008, before the government rescue, the firm’s employees had been promised more than $400 million in retention pay this year and next. Lawyers for the government and AIG have agreed that most of those payments, however unsavory, are legally binding.

“We are a country of laws. There are contracts,” Summers said yesterday. “The government cannot just abrogate contracts. Every legal step possible to limit those bonuses is being taken by Secretary Geithner and by the Federal Reserve system.”


These stupid contracts are a symptom of what is wrong.  Summers, of course, wants to protect his buddies.  So he doesn’t mind paying them for destroying AIG and in turn, destroying the US.  We jail terrorists!  So why would we want to have a system whereby we maintain laws that protect people who are outright destructive?  



Do we say, ‘Oh well, so much for that!  I suppose we must commit suicide to please a bunch of crooks’?  Of course not. Survival is important.  Shrugging off this sort of utter malfeasance is dangerous for any government.  Eventually, heads will roll.  It is best to drag out into the open, these destructive, greedy jerks and put them up for us to shame and to shove.  They can’t get off, scot free and with all their loot anymore than Madoff’s crooked wife should be able to keep a billion dollars in loot.



Teenagers downloading P2P songs are brutalized much worse and made to pay small fortunes to the RIAA goons.  So why are we suddenly helpless when confronted with major thievery?  It is obvious that something must be changed, swiftly.  At the very least, the names of the crooks who destroyed AIG and are getting millions for this service, should be published.  



Three Wise Men Offer Three Takes On Markets –


Burton Malkiel, professor of economics at Princeton University and author of “A Random Walk Down Wall Street.”

This recession is being compared in its severity to the Great Depression, and I suppose in terms of how fast unemployment is going up and how worldwide it is, it probably bears some similarity to the Great Depression. But I want to emphasize I don’t think we’re going into a Great Depression. For one thing, the money supply dropped by 25 percent during the Great Depression. Today, the Federal Reserve’s balance sheet is expanding dramatically. And central banks around the world are doing the same thing with respect to fiscal policy. I think the Obama stimulus plan could be much better. I think it may even be too modest. But at any rate, it’s a big stimulus plan. Relative to what we did in the Great Depression, this is real money.


What ails people?  This is a ‘wise man’?  If this idiot is wise, what am I?  A potato?

And here is another article from back then from my blog:  AIG BONUS NUCLEAR BOMB THREAT | Culture of Life News




The AIG gnomes are trying to terrorize us.  They claim, if they don’t get their big bonuses, they will destroy the world’s economy.  This is yet another reason to arrest these criminals.  Also, they already wrecked the world’s economy, so if it is true that they can wreck it even more, this makes them much more dangerous than Iran or China or Russia or everything except maybe meteorite strikes or Antarctica melting suddenly.  This is ridiculous and our President should call for locking these gnomes up at Gitmo and torturing them with loud heavy metal music.


IMF Bailed Out By Countries Suffering Internal Collapse | Culture of …

US Public Bailed Out Bain Capital And The Derivatives Beast May …

And then there is this article explaining how wealth works in the mythological realm:  CAVE OF WEALTH AND DEATH – Culture of Life News

Every American citizen should be thoroughly outraged today but are not, the right wing GOP has channeled all the rage towards the issue of paying taxes and do this cynically in order to help the very rich keep all their loot while the left has basically given up again in the teeth of violent government suppression of any demonstrations against Wall Street and the gnomes who operate there, stripping us of our sovereign wealth.

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13 responses to “Chutzpah Time: AIG Board Of Misdirectors Want To Sue US People For Bailing Out Their Ass…ets

  1. Christian W

    All these ‘foreign’ banks are under the Federal Reserve umbrella. They are the owners and beneficiaries of this dollar system. No wonder the dollar is being abused to kingdom come and not looking the worse for wear, until the fine day it goes *poof* of course.

    These banksters are like Napoleon. They won’t stop, and are completely unable to stop, as long as they feel there is more profit on the other side of the horizon. Limits mean nothing to them, neither does reason or morality.

    How unsurprising then to see the little AIG Napoleons, completely without shame, and knowing full well they can do no wrong, serve no jail time, lose no money, now that the government has their backs. Why not go for it?

  2. Being There

    I saw a commercial this morning from AIG thanking the American people for their help and how they have paid us back. And oh, how wonderful it all is.

    Bloomberg sued for the right to information and it is well known that 7 trillion all told was given over to the banking system both in the form of TARP and then through back door dealings in the international banking system.
    There is a reason why we say we don’t negotiate with terrorists. It’s good advice that our so called government didn’t heed.

    Once their expectations are emboldened, they know they can do anything. They can break any law and they can crush us all. That’s only because they are allowed to do that. Throw the lot of them in jail and use The Patriot Act on ’em already…

  3. Lucky13

    My understanding of ‘what happened’ is part fo TARP went to lobbyists
    in DC, to lobby for more deregulation etc.
    self reinforcing feedback loop.

  4. Lucky13

    ” I think it may even be too modest.”

    Thats whats Krugman said as well.

  5. Sociopaths have taken control of our capitalist system.
    By definition they are never satisfied with what they have.
    How to fight back?Opt out of the system as much as humanly possible.

  6. vengeur

    Here’s three of the biggest sociopaths – formerly known as wise men:,16641,19990215,00.html

  7. “These banksters are like Napoleon.”

    Syphilitic madmen? Can the world get any more crazy than it already is?

  8. Being There

    Can the world get any more crazy than it already is?

    I’m afraid it can. I think the title of a play, “Stop the World I Want to Get Off”, has a nice ring to it.

    Back in the ’50’s or early 60’s I remember dire b/w TV ads with Khrushchev threatening, “We will bury you.”

    They never had to lift a finger….Neither do the Islamic terrorists…

  9. Seraphim

    If people can have the chutzpah to sue God (like that Betty Penrose back in 1970 who blamed God for negligence allowing a lighting bolt to strike her house – she won $100.000, by default God failing to “turn up in court”, or Nebraska senator Ernie Chambers – that in 2008) would they be afraid to sue the American people?

  10. Being There

    @ Seraphim

    Who pray tell paid?

  11. Seraphim

    @Being There,

    I don’t know. Maybe you do, being there.

  12. emsnews

    News flash: the AIG board backed down when everyone began screaming at them. I still say, arrest them all. Now.

  13. Seraphim


    And put them in the straightjacket.

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