AIG Scrutinized Anew Over Bank Payments
Key House lawmakers are calling for a probe of allegations that AIG (AIG) is striking a tougher stance in settling obligations with U.S. banks, while going easier on foreign ones.
Rep. Barney Frank (D., Mass.), chairman of the House Financial Services Committee, on Wednesday wrote to Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke and asked that they look into the allegations brought by Rep. Spencer Bachus (R., Ala.), the committee's ranking Republican.
"I have been informed that, in contrast with its treatment of foreign banks, AIG is now attempting to force many of its creditors that are U.S. banks to accept severe reductions in the debt that is owed to them," Bachus writes in a letter to Frank.
About $100 billion in taxpayer money has flowed through AIG to its counterparties, and a majority of it went to foreign institutions, Bachus writes. AIG's largest payouts following its bailout went toGoldman Sachs (GS), Bank of America (BAC) via its purchase of Merrill Lynch, Deutsche Bank (DB) and Societe Generale (GLE).
Smaller payments went to a host of other banks, including Morgan Stanley (MS) and Royal Bank of Scotland (RBS).Select the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Dividend Stock Advisor
TRY IT FREENew! $49.95/yr
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Real Money
TRY IT FREE24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
Product Features:
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV
