U.S. Is Pressed to Add Billions to Bailouts

[iandhr]

Source: NY TIMES

The government faced mounting pressure on Monday to put billions more in some of the nation’s biggest banks, two of the biggest automakers and the biggest insurance company, despite the billions it has already committed to rescuing them.

The government’s boldest rescue to date, its $150 billion commitment for the insurance giant American International Group, is foundering. A.I.G. indicated on Monday it was now negotiating for tens of billions of dollars in additional assistance as losses have mounted.

Separately, the Obama administration confirmed it was in discussions to aid Citigroup, the recipient of $45 billion so far, that could raise the government’s stake in the banking company to as much as 40 percent.

Read more: http://www.nytimes.com/2009/02/24/business/24bailout.html?_r=1&hp

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Can things get any worse

[Wizard777]

1. Are they actually going to use the money for loans this time?

According to Trump they've used the last bailout to buy banks in China instead of lending it out. Due to the global nature of the economic crisis. Those newly acquired assets could also become troubled.

[earthside]

2. It is just getting silly, now.

Really, what the hell, let's just print-up or borrow about a hundred trillion dollars and give it to all these corrupt and irresponsible corporations.

Maybe that will solve all the problems.

My level of cynicism doubles everyday -- no one is talking about deep systemic change, an economic revolution if you will -- so what difference does it make it it is a trillion or a hundred trillion dollars?

In truth, some of these banks and corporations must crash and burn or this torture is going to go on and on till we reach the bottom anyway.

[defendandprotect]

3. No more handouts to corrupt capitalism . . . nationalize and hold onto the companies . .

that's all --

[earthside]

5. Nationalization: The Biggest Handout of All

Real nationalization means taking the liabilities as well as the assets.

There is a reason Citi is angling for "nationalization" --- because then the taxpayers can be on the hook for their $40 trillion derivatives exposure.

Don't be fooled, nationalization is just the last step in the looting of the U.S. treasury by these transnational bankers and corporations.

[defendandprotect]

6. We can take possession of the bank, pay the depositors . .

who are covered by federal insurance --

Are you saying that "derivatives" are federally insured?

Also, we obviously have to have possession of the books -- all the books.

We have to consider all of the branch ownership -- Cayman Islands, etal

As I recall it, Citibank was laundering something like $500 billion a year in drug money.

Yeah -- lots will be going on!

[high density]

4. Raise the government's stake to 100%

If we want banks to lend, we're going to have to temporarily take over a couple of the big guys and clean their acts up.

[defendandprotect]

7. We have to reduce the government's liability in bank failures . . .

We have expanded our liability too far in insuring accounts --

Orginally it was $15,000 - $20,000 and if you wanted to deposit more

then you had to distribute it among different banks.

This provided for coverage when a bank faced theft and/or embezzlement --

It did not provide for systemic corruption --

And, it's about time we had Congress making amends for this -- RE-REGULATION,

INVESTIGATION -- and penalties for those who have pulled down Glass-Segall and

other financial regulation which have led to this corruption!

In fact, Rep. Bernie Sanders is calling for an investigation of how this economic

disaster evolved overall.