Monday, March 16, 2009

Govt Owns 80% of AIG. Why does it ask for records?

I'm confused about something. If a stakeholder owns 80% of a business, wouldn't that stakeholder have access to the company's transaction and financial records?

Yes? Of course it would? I thought so.

How is it different when the stakeholder happens to exist in the collective form of the American taxpayers, whose more than $170 billion dollars were used by the Federal Reserve to bailout a failing company: A.I.G

As this is the case, why did members of Congress have to beg for the names of "partner companies" to which A.I.G. further doled out the bailout money? And it appears, taxpayers and Congress only received this concession as means of distraction. A.I.G. released the names of its payees just after A.I.G. revealed nearly the billion dollars in bonuses it released to upper management in the particular division of the company that spawned a national disaster.

As an 80% shareholder in the company, the Federal government should get up off its knees and stop begging. Instead it should grab A.I.G. by the throat and promise to break its financial windpipe if the company doesn't get its act together.

See which companies
A.I.G disclosed as partners.

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