August, 2009 Vanity Fair article investigating the implosion of A.I.G., Michael Lewis explains how one of the world’s safest insurers became a reckless juggernaut—and a national target.
Archive for the ‘Subprime’ Category
Bloomberg (November 10, 2008)
It may still take awhile before Wall Street finally accepts that it won’t get paid.
At the moment, as their bony fingers fondle the new taxpayer loot, the firms appear to believe that they might still fool the public into thinking that bonus money isn’t taxpayer money.
“We’ve responded appropriately to the attorney general’s request for information about 2008 bonus pools,” a Citigroup Inc. spokeswoman told Bloomberg News recently, “and confirmed that we will not use TARP funds for compensation.” But as the Bloomberg report noted, “she declined to elaborate.”
As well she might! For if the Citigroup spokeswoman had elaborated she would have needed to say something like this: “We’re still trying to figure out how the $25 billion we’ve already taken of taxpayers’ money has nothing to do with the $26 billion we’re planning to hand out to our highly paid employees in 2008 (up 4 percent from 2007!). But it’s a tricky problem because, when you think about it, it’s all the same money.”