June 15, 201511 yr But shareholders get nothing in ruling. Judge: Government illegally seized AIG but doesn't owe damages The government illegally took a controlling stake in AIG during the 2008 financial crisis in exchange for an $85 billion loan, but the insurance giant's shareholders deserve no damages because the firm would have gone bankrupt without the aid, a federal judge ruled Monday. Judge Thomas Wheeler acknowledged that the unusual decision could set a troubling precedent by encouraging the federal government to "impose whatever terms it wishes" when it bails out a company "without fear of reprisal." But in an often scathing ruling that sharply assailed the government's tactics, he added, "With some reluctance, the Court must leave that question for another day." The historic case was argued before the U.S. Court of Federal Claims last fall and featured the celebrated architects of the government's response to the financial crisis, including former Federal Reserve chairman Ben Bernanke, and former Treasury secretaries Henry Paulson and Tim Geithner. Emphasis added. Full ruling: http://online.wsj.com/public/resources/documents/StarrvUS06152015.pdf
June 15, 201511 yr In a battle of which behemoth I like less, it is a tough call between AIG and the US Government...
June 16, 201511 yr In a battle of which behemoth I like less, it is a tough call between AIG and the US Government... No kidding. Instead of suing the government maybe the idiots who designed this hostile like government takeover should be held accountable. Some of these idiots think they have absolute power to do what they will. In no means is this excuse the jerks who incompetently ran these companies but it is almost turning into a peeing contest to see who can be the most arrogant.
June 16, 201511 yr Author No kidding. Instead of suing the government maybe the idiots who designed this hostile like government takeover should be held accountable. Some of these idiots think they have absolute power to do what they will. In no means is this excuse the jerks who incompetently ran these companies but it is almost turning into a peeing contest to see who can be the most arrogant. So you want to take on the Federal Reserve - right?
June 16, 201511 yr Author In a battle of which behemoth I like less, it is a tough call between AIG and the US Government... The government always has the upper hand in any type of dealing like this. Especially when they are doing so behalf of those with the most control of the reigns of government. From the article: In a statement, the Fed said it "strongly believes that its actions in the AIG rescue during the height of the financial crisis in 2008 were legal, proper and effective." It added: "The terms of the credit were appropriately tough to protect taxpayers from the risks the rescue loan presented when it was made." AIG was charged 12% interest for the 'bailout' - that was funded with Fed printed money. At the same time the Fed was supplying money at around 2% interest to the TBTF banks. Edited June 16, 201511 yr by Bluegrasscard Added quote - other
June 16, 201511 yr That is a good point about the "bank bailouts" that many don't know. The government actually made money on the bailouts as it charged a high rate of interest for the money loaned. I also have posted before that I worked at the time for a bank that did not want or need the bailout money but was FORCED to take it...and pay 5% interest on it! Talk about government overreach...tell a private company that you HAVE to borrow money from the US Govt and pay interest even if you don't want it...think about that for a minute...
June 16, 201511 yr Author That is a good point about the "bank bailouts" that many don't know. The government actually made money on the bailouts as it charged a high rate of interest for the money loaned. I also have posted before that I worked at the time for a bank that did not want or need the bailout money but was FORCED to take it...and pay 5% interest on it! Talk about government overreach...tell a private company that you HAVE to borrow money from the US Govt and pay interest even if you don't want it...think about that for a minute... Sounds like ACA and/or student loans....
June 16, 201511 yr The entire federal reserve, no. Just the jerks who orchestrated these hostile takeovers. As a whole I have no problem with the federal reserve.
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