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The Bridge To Nowhere is a political information action group overseeing our political candidates, elected government officials, major corporations and their lobbyists involved in big oil, energy, environment, and the nuclear weapons industry.

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Election Archives

2008;

 

*********  Top Story  **********

First Audit Results In The Federal Reserve’s Nearly 100 Year History Were Posted Today, They Are Startling!  http://beforeitsnews.com/economy/2012/09/first-audit-in-the-federal-reserves-nearly-100-year-history-were-posted-today-the-results-are-startling-2449770.html

What was revealed in the audit was startling: $16,000,000,000,000.00 had been secretly given to US banks, corporations & foreign banks everywhere from France to Scotland. "The period between 12/2007 & 6/2010, the Federal Reserve "secretly" bailed out many of the world’s banks, corporations, and governments.

The list of institutions that received the most money from the Federal Reserve can be found on page 131 of the GAO Audit and are as follows..
LINK:   http://www.scribd.com/doc/60553686/GAO-Fed-Investigation#outer_page_144

Citigroup: $2.5 trillion ($2,500,000,000,000)
Morgan Stanley: $2.04 trillion ($2,040,000,000,000)
Merrill Lynch: $1.949 trillion ($1,949,000,000,000)
Bank of America: $1.344 trillion ($1,344,000,000,000)
Barclays PLC (United Kingdom): $868 billion ($868,000,000,000)
Bear Sterns: $853 billion ($853,000,000,000)
Goldman Sachs: $814 billion ($814,000,000,000)
Royal Bank of Scotland (UK): $541 billion ($541,000,000,000)
JP Morgan Chase: $391 billion ($391,000,000,000)
Deutsche Bank (Germany): $354 billion ($354,000,000,000)
UBS (Switzerland): $287 billion ($287,000,000,000)
Credit Suisse (Switzerland): $262 billion ($262,000,000,000)
Lehman Brothers: $183 billion ($183,000,000,000)
Bank of Scotland (United Kingdom): $181 billion ($181,000,000,000)
BNP Paribas (France): $175 billion ($175,000,000,000)

and, many many more including banks in Belgium of all places.

View the 266-page GAO audit of the Federal Reserve (July 21st, 2011):

http://www.scribd.com/doc/60553686/GAO-Fed-Investigation

Federal Reserve Chairman Ben S. Bernanke participated in a live webcast of a town hall meeting with educators on Thursday, September 30, 2010 from 2:30-3:30 p.m. EDT. During this session, Chairman Bernanke answered teachers’ questions about the Federal Reserve and the economy.

REAL DEBT 25 Trillion:  http://www.youtube.com/watch?v=7qwrPEUxpK

************************

Read; Transcript of President Barack Obama's  long-term budget proposal in Washington on April 13
( opens in Word Program, can be save to your hard drive )

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Inequality - Of the 1%, by the 1%, for the 1%
Americans have been watching protests against oppressive regimes that concentrate massive wealth in the hands of an elite few. Yet in our own democracy, 1 percent of the people take nearly a quarter of the nation’s income—an inequality even the wealthy will come to regret.
By Joseph E. Stiglitz

********** 10 Largest Banks in the World  **********

BNP Paribas (BNP) – French bank with $2.96 trillion in assets.
Royal Bank of Scotland (RBS) Group – with $2.75 trillion in assets.
Barclays PLC (Barclay’s) – British bank with $2.23 trillion in assets.
Deutsche Bank – German bank with $2.16 trillion in assets.
HSBC Bank with $2.36 trillion in assets.
Credit Agricole – French bank with $2.24 trillion in assets.
Bank of America (BAC) – with $2.22 trillion. BAC acquired Merrill Lynch.
Mitsubishi UFJ Financial Group (Mitsubishi) – Japan bank with $2.20 trillion in assets.
CitiGroup – with $1.86 trillion in assets.
J.P. Morgan Chase – with $2.03 trillion in assets.

Source: http://www.doughroller.net/banking/largest-banks-in-the-world/

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Is this the new Flag of the Corporate States of America

flag-barcode.jpg
Designer Posting Approved, but requested to be "Anonymous"

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The question IS, "ARE YOU BETTER OFF TODAY"

Economic Indicators
(posted 9-08)

Inauguration
Day 2001

Now

Unemployment Rate

4.2 %

6.1 %

Budget

281 Billion Surplus

357 Billion Deficit

Debt

5.7 Trillion

9.7 Trillion

Gas Prices

1.45/gal

4.00/gal

Tax breaks for Big Oil are NO solutions for working families, did they help you?

And now we have Capital Hill "blackmail" via the George W. Bush proposed $700,000,000 (700-billion) bailout of the nation's financial market corporations. It's "Wall Street" vs. "Main Street" (US). Many believe Treasury Secretary Henry Paulson is seeking too much unregulated cash and power in his effort to stabilize the economy by buying up mortgage-backed securities. And the beat goes on, and WE lose!

ABC NEWS Business Unit
Mega-Million Dollar CEO Payouts
See How Much These Big-Name CEOs Took Home Each Year
By Zunaira Zaki

Big Business Firms

CEOs

Cash/Stock

Other Pay

Total Pay

Lehman Brothers:

CEO average yearly take=  68.348 million

millions

2007

Richard Fuld

5,000,000

66,770,000

71,770,000

2006

Richard Fuld

7,000,000

55,323,679

62,323,679

2005

Richard Fuld

14,500,000

89,500,000

104,000,000

2004

Richard Fuld

11,000,000

24,300,000

35,300,000

Morgan Stanley:

CEO average yearly take=  18.23 million

2007

John Mack

800,000

16,431,500

17,231,500

2006

John Mack

800,000

6,321,000

7,121,000

2005

John Mack

337,534

30,000,000

30,337,534

Goldman Sachs:

CEO average yearly take=  66.703 million

2007

Lloyd Blankfein 27,600,000 15,500,000 43,100,000

2006

Lloyd Blankfein 27,800,000 15,700,000 43,500,000

2006

Henry Paulson
US Treasury Secretary
129,087,000 34,900,000 163,987,000

2005

Henry Paulson 600,000 3,363,422 3,963,422

2004

Henry Paulson 600,000 11,660,000 12,260,000

Bear Stearns:

CEO average yearly take=  25.0 million

2006

James Cayne 17,300,000 14,800,000 32,100,000

2005

James Cayne 12,900,000 10,300,000 23,200,000

2004

James Cayne 10,200,000 9,500,000 19,700,000

Merrill Lynch:

CEO average yearly take=  55.417 million

2007 John Thain 15,800,000 - 0 - 15,800,000
2007 E. Stanley O'Neal 584,000 161,000,000 161,584,000
2006 E. Stanley O'Neal 19,200,000 45,116,327 64,316,327
2005 E. Stanley O'Neal 14,800,000 3,120,000 17,920,000
2004 E. Stanley O'Neal 700,000 16,766,448 17,466,448
Washington Mutual:

CEO average yearly take=  7.545 million

2007 Kerry K. Killinger 1,000,000 3,468,625 4,468,625
2006 Kerry K. Killinger 5,100,000 17,153,715 22,253,715
2005 Kerry K. Killinger 4,600,000 8,876,608 13,476,608
2004 Kerry K. Killinger 2,900,000 12,335,416 15,235,416
AIG:

CEO average yearly take=  14.974 million

2007 Martin J. Sullivan 10,200,000 5,647,439 15,847,439
2006 Martin J. Sullivan 16,900,000 5,838,656 22,738,656
2005 Martin J. Sullivan 7,750,000 159,000 7,909,000
2004 M.R. "Hank" Greenberg 1,400,000 12,002,880 13,402,880
Fannie Mae:

CEO average yearly take=  7.545 million

2007 Daniel Mudd 3,200,000 5,200,000 8,400,000
2006 Daniel Mudd 4,400,000 2,290,000 6,690,000

Freddie Mac:

CEO average yearly take=  5.370 million

2007 Richard Syron 5,590,000 - 0 - 5,590,000
2006 Richard Syron 5,150,000 - 0 - 5,150,000 

__________________

Actual Total Take:   1,088,143,249 Trillion
(average years;  3.33 yrs)

12-"Wall Street" CEOs in only 9-firms:

Here's a fair solution, and the answer to the Wall Street Bailout;

The CEOs should pay the $700 billion "Wall Street" bailout from the 1,088,143,249 trillion, THEY took!  This would still leave these CEOs with $388,143,249 billion.

If they bulk, the system should confiscate their holdings in real estate, cash and stocks.  You know, like the system does to the average American!

The fact is, the average American would be in prison for a long time, for a far less amount then this thievery.  "WE" the People ask; why aren't they?

9/29/08:  Final Vote in House on Bailout Bill Fails;  205 for and 228 against

Now, do you feel good that YOUR government is bailing out Wall Street Big Business, and may now be giving out "Golden Parachutes"?
post your comment

20 top CEOs took a comfortable $1,638,830 Billion in 2007

Name

Company

Pay in Millions

Lawrence J Ellison Oracle 192.92
Frederic M Poses Trane 127.10
Aubrey K McClendon Chesapeake Energy 116.89

Angelo R Mozilo

Countrywide Financial

102.84

Howard D Schultz

Starbucks

98.60

Nabeel Gareeb

MEMC Electronic Mats

79.56

Daniel P Amos

Aflac

75.16

Lloyd C Blankfein

Goldman Sachs Group

73.72

Richard D Fairbank

Capital One Financial

73.17

Bob R Simpson

XTO Energy

72.27

Richard S Fuld Jr

Lehman Bros Holdings

71.90

Steven Roth

Vornado Realty

71.85

Marijn E Dekkers

Thermo Fisher

69.00

Steven A Burd

Safeway

67.17

Gregg L Engles

Dean Foods

66.08

Nicholas D Chabraja

General Dynamics

60.26

Leslie H Wexner

Limited Brands

56.06

David C Novak

Yum Brands

54.91

John T Chambers

Cisco Systems

54.77

William R Berkley

WR Berkley

54.60

How much do you make?

*********  This is guy found personal truth with super wealth  **********

I AM [the movie]

*******************

In The News

NY Times
Strongest Election Day Stock Rally in 24 Years 
By SHARON OTTERMAN 
Wall Street had its largest Election Day rally in 24 years as millions of American voters went to the polls.

NY Times
New Terrain for Panel on Bailout 
By MARK LANDLER 
A committee of five little-known officials is picking winners and losers among institutions seeking a slice of the bailout.

NY Times
Debt Linked to Buyouts Tightens the Economic Vise 
By ANDREW ROSS SORKIN and MICHAEL J. de la MERCED 
Analysts expect an array of private equity firms to face pressure as profits shrink and creditors come knocking.

NY Times
A Splash of Green for the Rust Belt 
By PETER S. GOODMAN 
In the face of rising unemployment, renewable energy has become a crucial source of good jobs for laid-off Rust Belt workers.

NY Times
Another Thumb on the Scales 
Despite the current economic turmoil caused by financial excess, the Justice Department’s new antitrust guidelines are a deregulatory gift to big business.

Mother Jones
Medicare's Poison Pill 
By James Ridgeway 
Remember Bush's signature health care initiative? My life depends on it—and that's not very reassuring.

NY Times
Profit Down, Qwest Will Cut 1, 200 Jobs 
By THE ASSOCIATED PRESS
NEW YORK (AP) -- Qwest Communications International Inc. posted a profit for its third quarter Wednesday, but said the continued slide of its traditional phone business is forcing it to cut 1,200 jobs, 3 percent of its work force.

NY Times
Reserve Fund’s Investors Still Await Their Cash
By DIANA B. HENRIQUES 
At least 400,000 people, and perhaps as many as a million, can’t access their savings in the Reserve Fund, the nation’s oldest money market fund, with no sure end in sight.

NY Times
2 Rivals’ Plans on Fiscal Issue Add to Deficits
By JACKIE CALMES
Senator John McCain’s tax and spending proposals would create larger annual budget deficits than those of Senator Barack Obama, analysts say.

NY Times
Hardships Past Haunt Europe’s Search for Financial Safety
By KATRIN BENNHOLD 
While their savings and retirements have been less exposed to stock market woes, history has taught Europeans that situations can go from bad to worse in no time.

Huffington Post
Bankers, Brokers Fleeing Wall Street For Fresh Start
By VALERIE BAUMAN
ALBANY, N.Y. — Bankers and brokers looking to escape the financial meltdown are scrambling to relocate their families, possessions and rarified talent far from Wall Street to places such as Florida, Chicago, Milwaukee, Virginia and Asia.

NY Times
OPEC’s Woes
Trying to jack up oil prices is unacceptable. It could send the world economy into an even deeper slump from which it could take a long time to recover.

Mother Jones
UBS's Offshore Shell Game
By Peter Stone
News: Wondering where all those CEO bonuses went in the current economic meltdown? Here's how bankers hid their cash and cheated the IRS.

Wall Street Journal
Job Losses Buffet U.S. Early, Compounding the Downturn
By KRIS MAHER
This month, consumer-products companies PepsiCo Inc. and Whirlpool Corp. announced job cuts of 3,300 and 440, respectively. On Thursday, Goldman Sachs Group Inc. said it would cut 3,260 jobs, or about 10% of its work force, Xerox Corp. said it would cut 3,000 people, and Chrysler LLC said it would eliminate 1,825 jobs. Chrysler announced an additional 5,000 cuts on Friday. Layoffs have spread to sock makers, book publishers, airlines and hydraulic-parts makers.

NY Times
Credit Crisis Slows Economy in Once-Hot Poland
By NICHOLAS KULISH 
Emerging markets that seemed to be thriving recently are finding themselves caught in the worldwide panic.

NY Times
General Motors, Driven to the Brink
By BILL VLASIC and NICK BUNKLEY 
G.M., like other American automakers, tied its fortunes to the S.U.V., a product line that may be the industry’s undoing.

NY Times
Rescuing Capitalism
The next president must re-evaluate some tenets of the deregulated version of a market economy that has dominated America since the Reagan administration.

NY Times
Citadel Chief Denies Rumors of Trouble
By LOUISE STORY 
Kenneth C. Griffin held an emergency conference call that transfixed Wall Street, where some fear that troubled hedge funds might dump investments into the already-shaky markets.

NY Times
Yard Sales Boom, and Sentiment Is First Thing to Go
By PATRICIA LEIGH BROWN 
As people seeking cash in hard times sell life’s daily trappings and keepsakes, garage sales are flourishing so much that some cities have begun cracking down.

NY Times
Greenspan Concedes Error on Regulation
By EDMUND L. ANDREWS 
Alan Greenspan, the former Federal Reserve chairman, told a House panel that he “made a mistake” in trusting that free markets could regulate themselves.

NY Times
U.S. Vows More Help for Homeowners
By VIKAS BAJAJ 
As foreclosures continue to rise, the government said it would do more to help homeowners by insuring against losses on some modified loans.

NY Times
Struggling to Keep Up as the Crisis Raced On
By JOE NOCERA and EDMUND L. ANDREWS
In an interview, Treasury Secretary Henry M. Paulson Jr. said Lehman Brothers could not have been rescued.

NY Times
Some Cut Back on Prescription Drugs in Sour Economy
By STEPHANIE SAUL
As people respond to financial and economic hard times by juggling the cost of necessities like groceries and housing, drugs are sometimes having to wait.

The Nation
Report From the Socialist International Conspiracy
By Barbara Ehrenreich
Surely you have heard by now of the imminent socialist takeover of America, and if you find the prospect unlikely, ask yourself: How many socialists do you know who lost millions in the recent stock market crashes? Just as I thought--none. And that's not only because you don't know any socialists. The truth is that we, the Socialist International Conspiracy, not only saw this coming, we are the ones who made it happen.

NY Times
This Bailout Doesn’t Pay Dividends
By DAVID S. SCHARFSTEIN and JEREMY C. STEIN
Although there are many things to like about the government’s plan to bail out banks, the failure to suspend dividends is not one of them.

NY Times
U.S. Is Said to Be Urging New Mergers in Banking
By MARK LANDLER 
The Treasury Department hopes to steer some of its $250 billion rescue package to banks willing to buy rivals, according to government officials.

NY Times
Deficit Rises, and the Consensus Is to Let It Grow
By LOUIS UCHITELLE and ROBERT PEAR 
Lawmakers have elected to pay for the bailout mainly by borrowing rather than spending cuts or tax hikes.

NY Times
Subprime, Pre-Slime
By SIMON WINCHESTER
The word “subprime” has suffered a surprising and unusually rapid evolution. Until 1991, it meant something eminently desirable and worthy of aspiration.

NY Times
Deficit Hits $455 Billion, Highest Percent Since ’04
By BLOOMBERG NEWS
WASHINGTON (Bloomberg) — The federal budget deficit rose to $455 billion in the fiscal year that ended Sept. 30 as financial market strains slowed economic growth while spending rose the most since 1990.

NY Times
Stocks Plunge on Economic Gloom
By SHARON OTTERMAN, DAVID JOLLY and BETTINA WASSENER
The Standard & Poor’s 500-stock index was down 9.03 percent after more signs that the economy was in for a dramatic slowdown.

NY Times
Commodity Prices Tumble
By CLIFFORD KRAUSS 
The financial panic and economic slowdown have put at least a temporary end to the commodity bull market of the last seven years.

NY Times
White House Overhauling Rescue Plan
By EDMUND L. ANDREWS and MARK LANDLER
A new approach that would inject capital into banks raises questions on whether officials squandered time with an earlier $700 billion plan to buy securities.

NY Times
Whiplash Ends a Roller Coaster Week
By VIKAS BAJAJ 
For three straight days, the stock market collapsed in the last hour of trading. On Friday, it merely swooned.

NY Times
U.S. May Take Ownership Stake in Banks
By EDMUND L. ANDREWS and MARK LANDLER
The Treasury Department is considering taking ownership stakes in many U.S. banks to try to restore confidence, according to government officials.

NY Times
Fed Considers Plan to Buy Companies’ Unsecured Debt
By EDMUND L. ANDREWS and MICHAEL M. GRYNBAUM
As stocks spiraled lower around the world, the Federal Reserve considered a radical plan to jump-start the ailing financial system.

The Nation
Bush's Failing Financial "Surge"
By Tom Engelhardt
Here we are, with ringside seats--far too close for comfort--at the Great Global Crash of '08. Nobody's quite calling it that yet, but what else could it be?

NY Times
End of an Era on Wall Street: Goodbye to All That
By TIM ARANGO and JULIE CRESWELL 
Historians, economists and pundits are busily debating the end of Wall Street’s era of big spending and high living.

NY Times
Pressured to Take More Risk, Fannie Hit a Tipping Point
By CHARLES DUHIGG
A decision, made under pressure from Congress and investors, to steer Fannie Mae into dangerous corners of the mortgage market proved to be disastrous.

The Nation
Obama's Bailout Strategy
By Tom Hayden
Framing the crisis as a verdict on free-market fantasies, he can win with a mandate to end the war and rebuild the economy. I thought our philosophy was not simply to understand the world, but to change it.

New York Times
Senate to Vote Wednesday on Bailout Plan
By Carl Hulse and and Robert Pear
Senate leaders scheduled the vote after agreeing to add tax breaks and a higher limit for insured bank deposits in a bid to attract enough votes to reverse defeat in the House.

New York Times
Trying to Avoid Economic Calamity, Lawmakers Grope for Resolution
By Carl Hulse and David M. Herszenhorn
In a moment of historic drama in the Capitol and on Wall Street, the House of Representatives voted 228-205 to reject a $700 billion rescue of the financial industry.

New York Times
With Wachovia Sale, the Banking Crisis Trickles Up
By Eric Dash
Federal regulators arranged the sale of Wachovia’s bank unit to Citigroup to stave off what might have been the second failure of a major bank in a week.

New York Times
Breakthrough Reached in Negotiations on Bailout
By David M. Herszenhorn, Carl Hulse
Officials said Congressional staff members would work to finalize the language of an agreement that would include pay limits for executives and require the government to do more to prevent foreclosures.

New York Times
Candidates Clash on Economy and Iraq
By Adam Nagourney and Jeff Zeleny
Barack Obama and John McCain mixed disdain and often caustic remarks as they set out sharply different views of how they would manage the country and confront adversaries.

New York Times
Talks Implode During Day of Chaos; Fate of Bailout Plan Remains Unresolved
By David M. Herszenhorn, Carl Hulse and Sheryl Gay Stolberg
Partisan presidential politics seemed to trample what had been exceedingly delicate Congressional negotiations over the $700 billion bailout package.

New York Times
Government Seizes WaMu and Sells Some Assets
By Eric Dash and Andrew Ross Sorkin
The government on Thursday made the largest bank seizure in American history, taking over Washington Mutual and selling pieces of it to JPMorgan Chase.

The Nation
McCain Suspends Democracy
By Katrina Vanden Heuvel
John McCain's low road to the White House is now using the president to scare Americans and obscure the facts of an economic rescue plan, writes Katrina vanden Heuvel. 

New York Times
Bailout Plan Talks Advance in Congress
By David M. Herszenhorn
Discussions with the Bush administration have addressed measures such as increased oversight and aid for homeowners at risk of foreclosure.

New York Times
Bush Officials Urge Swift Action on Rescue Powers
By Edmund L. Andrews
Treasury Secretary Henry M. Paulson Jr. said the upfront cost of a rescue proposal could easily be $500 billion, and outside experts predicted that the bill could reach $1 trillion.

New York Times
Wall Street Posts Worst Loss Since 2001
By Stephen Labaton
Despite reassurances by the Bush administration, the Dow fell 4.4 percent on Monday, dragged by the bankruptcy of Lehman Brothers and the sale of Merrill Lynch.

Muckety
UBS investigation could bode ill for Phil Gramm and McCain campaign
By Laurie Bennett
An ongoing investigation of offshore investments handled by the Swiss bank UBS may have major repercussions in the U.S.

As the New York Times reports today, federal authorities are looking at accounts managed by UBS for wealthy U.S. investors. 

Investigators estimate that the bank’s customers may have hidden as much as $20 billion in assets from the IRS.

************************

  AGI Bailout

Look closely at the date's of some of these stories!
I "Dare" anyone to tell me this mess was unexpected!
This is a perfect example of favors going down until the cash ran out.
The main players of the AIG insurance company get away with all their
money and the freedom, time, to cover their you know what! Now the tax payer
will be billed for cleaning up this mess while the players live it up in the lap of luxury!

This was a deal, no matter how you cut it, long time in the works!

And the beat goes on, the beat goes on!
Assume Nothing! Question Everything!

Barbara/founder/dtdn

************************

Ex-AIG execs liable for $115 million
Maurice "Hank" Greenberg and three other former American International Group Inc. executives agreed to a $115 million settlement of claims that the insurer overpaid a company he controlled by $1 billion, investors' lawyers said.

Top AIG execs got payments from private firms
By Elliot Blair Smith, USA TODAY
Former AIG chief financial officer Howard Smith earned almost half his $2.7 million in compensation last year from two private investment firms whose fortunes were tied to the big insurer's but whose interests might have been at odds with its shareholders'.

Under the arrangement, Smith pocketed $1.3 million as a partner at C.V. Starr, an insurance brokerage that sells insurance for AIG; and from his stake in Starr International, which owns 12% of AIG's stock and participated in some of its controversial reinsurance deals, according to regulatory filings.

Former AIG CEO Maurice "Hank" Greenberg was the biggest beneficiary of the Starr relationships. He received 34% of his $16.9 million in AIG-related compensation last year from the private firms, which he controls. He and Smith are at the center of fraud lawsuits by the New York attorney general's office and two pension funds that accuse the former executives of enriching themselves by falsely burnishing AIG's financial performance.

An action by the Teachers' Retirement System of Louisiana says key AIG executives who held virtually identical jobs at C.V. Starr brokered hundreds of millions of dollars in insurance for AIG while acting as executives of the private firm, thus diverting millions of dollars in commissions to themselves.

"Those executives became beholden to Hank Greenberg. Therefore, he had the power to make them do things that ethical people don't normally want to do," says attorney Louis Gottlieb, who represents the Ohio Public Employees Retirement System and other state funds in related complaints.

Rajesh Aggarwal, a compensation and governance specialist at the University of Virginia, says, "Here you start getting directly to people's motivations when their compensation is structured in this way, and much of it is hidden from public view."

Greenberg, 80, quit AIG in March, amid state and federal investigations. Smith was fired for refusing to cooperate with investigators. Both men deny wrongdoing.

Another of Starr's partners and beneficiaries was Greenberg's successor at AIG, CEO Martin Sullivan, who said this week he is "unwinding" the companies' relationship.

In July 2003, Greenberg told two AIG directors that he viewed AIG as a public company with "quasi-private entrepreneurial atmosphere," according to lawyers' notes of the meeting in Louisiana's lawsuit. He opposed bringing Starr's business in-house, saying, "We'd lose people and lose business."

AIG's auditor, PricewaterhouseCoopers, reviewed the C.V. Starr relationship in December 2002 and found that its commissions appeared to be "within market rates," according to a copy of the report contained in Louisiana's lawsuit. But the auditors also found that AIG understated Starr's commissions by $6.7 million in 2001 and said its review of supporting documentation was limited. It did not examine Starr compensation.

Stuart Grant, a lawyer for the Louisiana teachers pension fund, says, "They've got to get rid of this whole Starr-AIG relationship. AIG needs to buy back Starr and bring it back into the fold. They can't have this separate business out there. The question is: Can it be done at a price that recognizes commissions have been paid to Starr that should have been paid to AIG? That will solve the problem of people who play dual roles."

Ex-AIG CEO gives $2.2B in stock to wife
Gift of 41.4 million shares given three days before Greenberg forced from post April 13, 2005: 4:08 PM EDT

WASHINGTON (Dow Jones) - Maurice "Hank" Greenberg, who last month relinquished his posts as chairman and chief executive of American International Group Inc. ( AIG) amid intense regulatory scrutiny, reported Tuesday a gift of 41.4 million company shares to his wife, Corinne P. Greenberg.

According to a filing released by the Securities and Exchange Commission, the transaction took place March 11, three days before insurance titan AIG announced Greenberg had retired as president and CEO. The company said later in the month that Greenberg also would retire as chairman.

The shares Greenberg gifted to his wife are worth $2.2 billion at AIG's closing share price Tuesday of $53.20.

As reported, Greenberg was interviewed Tuesday by regulators probing AIG's accounting. The regulators are looking into whether AIG, which Greenberg led for decades, used questionable financial transactions to improperly boost its results.

The SEC filing also disclosed that Greenberg exercised options on 11,012 shares last Friday and surrendered 5,780 shares to pay for the options exercise, retaining 5,232 shares.

Greenberg exercised options on the shares for $22.10 to $37.87 apiece.

Greenberg directly held 1.95 million AIG common shares after the transactions, and about 65.1 million shares indirectly, according to the filing. Greenberg's indirect holdings, however, apparently included the shares he gifted to his wife.

According to the SEC filing, Greenberg disclaims the beneficial ownership of shares of AIG common stock held by his wife and by trusts set up for his children and grandchildren.

AIG - Martin Sullivan Paid $47 Million Severance Package - Financials
US  News *Story ..01 Jul 2008

AIG's Other Reputation
Some Customers Say the Insurance Giant Is Too Reluctant to Pay Up
By Dean Starkman
Washington Post Staff Writer
Sunday, August 21, 2005; F01

When his pickup truck developed engine trouble a few years ago, Anthony A. Stankus filed a claim under an auto warranty he had bought from a unit of insurance giant American International Group Inc.

Soon the Phoenix consultant got his answer: Claim denied.

Most policyholders would have left it at that. But Stankus sued -- and won a rare look at the internal claims-handling practices at the world's largest insurance company.

As it turns out, AIG was losing more than $210 million on auto-warranty claims, provoking the ire of the company's longtime chairman and chief executive, Maurice R. "Hank" Greenberg, according to court documents. As a result, in mid-1999, a newly installed team at AIG's auto-warranty division began to reject thousands of claims -- including half of the claims that its own contractor, a claims-handling company, recommended be paid, according to court papers. Stankus's claim was among them.

A.I.G. Is Expected to Offer $1.6 Billion to Settle With Regulators
By Jenny Anderson
Published: February 6, 2006

The regulators have been looking into violations at A.I.G. that they say included improper accounting, bid-rigging and skipped payments to state workers' compensation funds.

***    Watch the 47 minute 'Money as Debt' animated documentary in http://video.google.com/videoplay?docid=-9050474362583451279. This is a useful, though by no means definitive, introduction to the topic of debt and the monetary system.    ***  Dennis Kucinich

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