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10/9: The Latest News on Corporate Bail  Out Crimes
 
 
 
From: Citizens For Legitimate Government
08 Oct 2008
_http://www.legitgov.org/_ (http://www.legitgov.org/) 
 

 
_AIG Gets More Government Bailout Cash_ 
(http://voices.washingtonpost.com/livecoverage/2008/10/government_to_give_aig_more.html)
  08 Oct 2008 Only  one day 
after it was revealed that AIG had sprung for a $440,000 spa vacation  
shortly after getting an $84 billion government-loan bailout comes this report: 
 The 
government is loaning AIG another $38  billion. AIG, the world's largest 
insurer, said it has already drawn  down $61 billion on its $84 billion line of 
credit from the  government. 
_AIG executives cancel planned California spa retreat_ 
(http://www.nydailynews.com/money/2008/10/09/2008-10-09_aig_executives_cancel_planned_california.html
)  09  Oct 2008 Still smarting from their spanking for blowing $500,000 at a 
swanky  resort after getting an $85 billion taxpayer bailout, AIG execs have 
cancelled a  planned spa weekend at a posh California hotel. The conference for 
AIG agents at  the Ritz-Carlton in Half Moon Bay next week was scrapped, AIG 
spokesman Joe  Norton said Thursday. AIG pulled the plug on plans for a 
weekend of pampering  for a privileged few after the feds agreed to lend AIG 
another 
$37.8 billion to  stay afloat - on top of the $85 billion the troubled 
insurer received just last  month. 
_AIG under fire for $370,000 resort trip_ 
(http://www.ft.com/cms/s/0/fbdf91de-94d1-11dd-953e-000077b07658.html)  08 Oct 
2008 As Martin  Sullivan, the 
former chief executive of AIG, testified before Congress that a  single 
accounting 
rule had caused his firm's near collapse, Henry Waxman, the  Democratic 
chairman of the House of Representatives' chief investigative  committee, 
flashed 
images of a luxury hotel on to television screens. In a  moment of drama 
usually 
reserved for US court rooms, Mr Waxman showed off  pictures of the grand 
staircase, sparkling fountain and white columns at the St  Regis Resort in 
Monarch 
Beach, California. AIG executives had - according to the  congressmen - 
convened there for a week-long retreat just one week after the US  Treasury 
saved 
it from certain failure with an $85bn (€62bn, £48bn) bail-out.  Bills showed 
the fallen insurer - and, some argued, US taxpayers - had paid  nearly $200,000 
for rooms, $150,000 for meals, and $23,000 in spa  charges. 
_AIG Spa Trip Fuels Fury on Hill_ 
(http://www.washingtonpost.com/wp-dyn/content/article/2008/10/07/AR2008100702604.html)
  --Lawmakers Blast Them About  
Bonuses 08  Oct 2008 For some people at AIG, the insurance giant rescued last 
month with an  $85 billion federal bailout, the good times keep rolling. Joseph 
Cassano, the  financial products manager whose complex investments led to 
American  International Group's near collapse, is receiving $1 million a month 
in  
consulting fees. Former chief executive Martin J. Sullivan, whose three-year  
tenure coincided with much of the company's ill-fated risk-taking, is receiving
  a $5 million performance bonus. Last week, about 70 of the company's top  
performers were rewarded with a week-long stay at the luxury St. Regis Resort 
in  Monarch Beach, Calif., where they ran up a tab of $440,000.  
_U.S. May Take Ownership Stake in Banks_ 
(http://www.nytimes.com/2008/10/09/business/economy/09econ.html)  09 Oct 2008 
Having  tried without success to 
unlock frozen credit markets, the Treasury Department  is considering taking 
ownership stakes in many United States banks to try to  restore confidence in 
the 
financial system, according to government officials.  Treasury officials say 
the just-passed $700 billion bailout bill gives them the  authority to inject 
cash directly into banks that request it. 
_Eliot's Mess_ (http://www.gregpalast.com/elliot-spitzer-gets-nailed/)  --The 
$200 billion bail-out for predator banks  and Spitzer charges are intimately 
linked By Greg Palast 14 Mar 2008 While New York Governor Eliot Spitzer  was 
paying an ‘escort’ $4,300 in a hotel room in Washington, just down the road,  
George Bush’s new Federal Reserve Board Chairman, Ben Bernanke, was secretly  
handing over $200 billion in a tryst with mortgage bank industry speculators.  
Both acts were wanton, wicked and lewd. But there’s a BIG difference. The  
Governor was using his own checkbook. Bush’s man Bernanke was using ours. This  
week, Bernanke’s Fed, for the first time in its history, loaned a selected  
coterie of banks one-fifth of a trillion dollars to guarantee these  banks’ 
mortgage-backed junk bonds. The deluge of public loot was an eye-popping  
windfall 
to the very banking predators who have brought two million families to  the 
brink of foreclosure.  
_Predatory Lenders' Partner in Crime_ 
(http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021302783.html)
  --How the Bush  
Administration Stopped the States From Stepping In to Help Consumers By  Eliot 
Spitzer 14 
Feb 2008 Several years ago,  state attorneys general and others involved in 
consumer protection began to  notice a marked increase in a range of predatory 
lending practices by mortgage  lenders... Even though predatory lending was 
becoming a national problem, the  Bush administration looked the other way and 
did 
nothing to protect American  homeowners. In fact, the government chose 
instead to align itself with the banks  that were victimizing consumers. 
Predatory 
lending was widely understood to  present a looming national crisis. This 
threat was so clear that as New York  attorney general, I joined with 
colleagues in 
the other 49 states in attempting  to fill the void left by the federal 
government.  
_Dow plunges 678 points_ 
(http://www.guardian.co.uk/business/2008/oct/09/creditcrunch-shortselling)  
--Wall Street shares plunged to their  lowest level 
for five years --US in line for a deep recession --Banks take  hammering after 
ban on short selling was lifted 09 Oct 2008 A collapse in  the value of the US 
stockmarket dramatically accelerated Thursday as Wall Street  shares plunged 
to their lowest level for five years driven by urgent, relentless  selling on 
trading floors. Hit by mounting alarm over the stability of the  global 
financial system, the Dow Jones Industrial Average dived by 678 points to  
8,579 in 
the blue-chip index's third worst points fall of all time. In  percentage 
terms, the Dow fell by 7%, exceeding the damage caused by last week's  record 
one-day slump of 777 points.  


==============================================================
ActionLA
Action for World Liberation  Everyday!
Tel: (213)403-0131
URL: _http://www.ActionLA.org_ (http://www.actionla.org/)  
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