Once again our wise benevolent ** government acted too rashly and too quickly and the government in this case acted against the wishes of the majority and slammed the bail out through congress with absolutely no thought on any legal or constitutional ramifications. ** sarcasm
Please, by all means hire a lawyer and sue the Federal Government on behalf of AIG to get the million dollar bonuses back from which they were given by the bailout bill aka TARP.
When you're laughed out of court, you might've wanted to do a little research and discover that AIG hasn't been given one dime of TARP money.
Federal Reserve bailout
On the evening of September 16, 2008, the
Federal Reserve Bank's Board of Governors announced that the
Federal Reserve Bank of New York had been authorized to create a 24-month credit-liquidity facility from which AIG may draw up to $85 billion. The loan is
collateralized by the assets of AIG, including its non-regulated subsidiaries and the stock of "substantially all" its regulated subsidiaries, and has an interest rate of 850
basis points over the three-month
London Interbank Offered Rate (LIBOR) (i.e., LIBOR plus 8.5%). In exchange for the credit facility, the U.S. government will receive warrants for a 79.9 percent equity stake in AIG, and has the right to suspend the payment of dividends to AIG common and preferred shareholders.
[3][6] The credit facility was created under the auspices of Section 13(3) of the
Federal Reserve Act.
[6][21][22] AIG's board of directors announced approval of the loan transaction in a press release the same day. The announcement did not comment on the issuance of a warrant for 79.9% of AIG's equity, but the AIG 8-K filing of September 18, 2008, reporting the transaction to the
Securities and Exchange Commission stated that a warrant for 79.9% of AIG shares had been issued to the
Board of Governors of the Federal Reserve.
[23][7][3] AIG drew down US$ 28 billion of the credit-liquidity facility on September 17, 2008.
[24] On September 22, 2008, AIG was officially removed from the
Dow Jones Industrial Average.
[25] An additional $37.8 billion loan was extended in October. As of October 24, AIG has drawn a total of $90.3 billion from the emergency loan, of a total $122.8 billion.
[26]
Additional Bailouts of 2008
On October 9, 2008, the company borrowed an additional $37.8 billion via a second secured asset credit facility created by the Federal Reserve Bank of New York (FRBNY).
[29] From mid September till early November, AIG's credit-default spreads were steadily rising, implying the company was heading for default.
[30]
On November 10, 2008, the U.S. Treasury announced it would purchase $40 billion in newly issued AIG senior preferred stock, under the authority of the
Emergency Economic Stabilization Act's
Troubled Asset Relief Program.
[31][32][33] The FRBNY announced that it would modify the September 16th secured credit facility; the Treasury investment would permit a reduction in its size from $85 billion to $60 billion, and that the FRBNY would extend the life of the facility from three to five years, and change the interest rate from 8.5% plus the three-month
London interbank offered rate (
LIBOR) for the total credit facility, to 3% plus LIBOR for funds drawn down, and 0.75% plus LIBOR for funds not drawn, and that AIG would create two off- balance-sheet Limited Liability Companies (LLC) to hold AIG assets: one will act as an AIG Residential Mortgage-Backed Securities Facility and the second to act as an AIG Collateralized Debt Obligations Facility.
[33][31] Federal officials said the $40 billion investment would ultimately permit the government to reduce the total exposure to AIG to $112 billion from $152 billion.
[31]
http://en.wikipedia.org/wiki/Aig#cite_note-NYT-Sorkin-2008-11-10-30