The American International Group (AIG) is tearing through $123 billion (with a B) in public money. Here's the CNBC.com article and a quote.
AIG has declined to provide a detailed account of how it has used the Fed’s money. The company said it could not provide more information ahead of its quarterly report, expected next week, the first under new management. The Fed releases a weekly figure, most recently showing that $90 billion of the $123 billion available has been drawn down.
AIG has outlined only broad categories: some is being used to shore up its securities-lending program, some to make good on its guaranteed investment contracts, some to pay for day-to-day operations and — of perhaps greatest interest to watchdogs — tens of billions of dollars to post collateral with other financial institutions, as required by AIG’s many derivatives contracts.
Message to US House Representative Eric Cantor:
This is why you don't throw billions of taxpayer dollars at people who have quite possibly committed financial crimes they will later be indicted for. They don't teach that in law school?