AIG, Arrogance, Incomeptence, Greed, is that true?
As AIG struggles to defend its million dollar bonuses to executives, the U.S. government stands embarrassed and frustrated. Despite the fact that AIG’s CEO Edward Libby should be interrogated and scrutinized, his point that the company had already made legal agreements between AIG and its employees prior to the bailout. “Alex Brill, a former economic adviser to George Bush, the former president, told Al Jazeera that ‘”these contracts were put in place prior to the bailout”.’ AIG’s abuse of tax-payer money is not necessarily a fault of the company’s, the culprit of this mess is Clinton and Bush senior, who had repealed the Glass-Steagall Act of 1933 that required banks be regulated by the government. In a quote from an Al Jazeera, “Now the taxpayer has gotten involved, and Washington is involved, they don’t like the agreements on the ground between AIG and its employees, and they’re discovering it right now.”
Discovering it now. When the agreement to hand out the billion dollar bailout to companies like AIG, the U.S. government failed to properly conduct investigations and make a true assessment of whether the money would be used wisely by companies. Now they are facing the results of an improper assumption that banks could be trusted, and furthermore that by the lack of regulation, stability in the market will occur. Knowing very well that the root of this crisis was the lack of regulation, why did people like Henry Paulson, or Barack Obama allow for these huge bailouts? Because the truth is, they would much rather asser the interest of multinational corporations than protect the rights of tax-payers. The true “arrogance, Incomptence and greed” that Congressman Paul Hodes said about AIG is true of our nation’s government, and its sole purpose is to protect banks and corporations.
It’s too late to point fingers now and cry over spilled money.