AIG

From Conservapedia

Jump to: navigation, search

The American Insurance Group, more commonly known as AIG, is one of the largest insurance companies in the world.

Contents

Bankruptcy

It was a major player in the Financial Crisis of 2008 because it sold $441 billion in unhedged and undercapitalized insurance on securitized debt, much of it tied to mortgage values. AIG sold many credit default swaps. Normally an insurance company "lays off" some of the risk by taking out insurance with another company. AIG neglected to do this because it never expected the securities to turn toxic, which they did. Either someone paid the insurance or the nation's financial system would colapse, so the government stepped in, seized AIG, and paid the insurance.

During the 2008 financial crisis, TARP funds were made available by the Bush administration and the Federal Reserve after facing the prospect of bankruptcy. The government has lent over $170 billion to shore up AIG because it insured big banks against losses from securities that turned out to be "toxic" and lost much of their value.
Bonus09.jpg

Bonuses

In March 2009 a firestorm of public protest exploded when it was discovered the U.S. Treasury under Secretary Timothy Geithner had allowed AIG to pay $160 million in employment contract bonuses for work in 2008 to the AIG traders who caused over $60 billion in losses in 2008. AIG's employment contracts were written without factoring in the possibility that credit default swaps could result in losses when borrowers default.

Sharia Financing

According to a Thomas More Law Center lawsuit, at least a portion of $40 billion AIG reciev ed in TARP funds has been used to support Sharia-compliant financial products. AIG has been using taxpayer money to promote Islam and Shariah law. The government acquired a majority interest in AIG and at least two of AIG subsidiary companies practice Sharia-compliant financing. In addition, the federal government co-sponsored a forum entitled Islamic Finance 101. [1]

Quotes

  • "The Rothschilds are the wonders of modern banking ... we see the descendants of Judah, after a persecution of two thousand years, peering above kings, rising higher than emperors, and holding a whole continent in the hollow of their hands. The Rothschilds govern a Christian world. Not a cabinet moves without their advice. They stretch their hand, with equal ease, from Petersburgh to Vienna, from Vienna to Paris, from Paris to London, from London to Washington. Baron Rothschild, the head of the house, is the true king of Judah, the prince of the captivity, the Messiah so long looked for by this extraordinary people. He holds the keys of peace or war, blessing or cursing. ... They are the brokers and counselors of the kings of Europe and of the republican chiefs of America. What more can they desire?"[2]
  • "This multinational banking family is a byword for wealth, power – and discretion... The Rothschild name has become synonymous with money and power to a degree that perhaps no other family has ever matched."[3]
  • "As we have seen, however, wars tended to hit the price of existing bonds by increasing the risk that a debtor state would fail to meet its interest payments in the event of defeat and losses of territory. By the middle of the 19th century, the Rothschilds had evolved from traders into fund managers, carefully tending to their own vast portfolio of government bonds. Now having made their money, they stood to lose more than they gained from conflict. The Rothschilds had decided the outcome of the Napoleonic Wars by putting their financial weight behind Britain. Now they would sit on the sidelines.[4]

See Also


Shovelready.jpg


Contrast with:


References

  1. AIG, Sharia and Uncle Sam, Washington Post, May 28, 2009
  2. (1836) Weekly Register. 
  3. Daily Telegraph,The Rothschilds: They prefer to let their money do the talking, William Langley, Published: 9:59 pm BST 25 Oct 2008
  4. The Ascent of Money: A Financial History of the World, (London 2008), page 91.
Personal tools