AIG gives its own bailout money to other banks

Home » Commentary, Investing, Money, News, Political

AIG gives its own bailout money to other banks

March 15, 2009 – 11:40 pm – No Comment

After receiving a lot of criticism about givng bailout money to employees in the form of bonuses, AIG released information that the company gave money to foreign and domestic banks in the tune of $90 billion.

Some of the domestic banks had even received their own share of government bailout money.

Eighty percent of AIG is owned by the U.S. government and the taxpayers. It has received over $170 billion inn bailout money and was one of the firms that was “too large to fail.”

Some of the biggest recipients of the AIG money were Goldman Sachs at $12.9 billion, and three European banks — France’s Societe Generale at $11.9 billion, Germany’s Deutsche Bank at $11.8 billion, and Britain’s Barclays PLC at $8.5 billion. Merrill Lynch, which also is undergoing federal scrutiny of its bonus plans, received $6.8 billion as of Dec. 31.

The money went to banks to cover their losses on complex mortgage investments, as well as for collateral needed for other transactions.

Other banks receiving between $1 billion and $3 billion from AIG’s securities lending unit include Citigroup Inc., Switzerland’s UBS AG and Morgan Stanley.

Source