American International Group, Inc.

Bailing Us Out or Burying Us?

What ever happen to the free market?? It used to be that is you went into business and it failed, you liquidated and closed your doors. We do not need nationalization of the banks. Let the banks that had poor management, made risky loans and spent money like drunken sailors, fold and let FDIC step in an make the depositors of the failed banks whole.

The federal government needs to read and understand the definition of insanity which is as follows, doing the same thing over and over again anticipating a different result. Our government is bailing these banks out left and right, throwing money, our money, at them hand over fist, infuriatingly enough to the very same people who drove these financial institution into the ground, as very few of these banks changed personnel from their mid-high end management.

So while John Q Public is at home, praying he will have a job to go to tomorrow and his wife is sitting at the table trying to figure out how to make ends meet since she was recently laid off, many of the criminals, ahem…. I mean bankers, are having a blast,  safe in the knowledge that Uncle Sam will continue to squeeze every last dime it can from the already struggling middle class.

Does this sound like the banking system really needed bailout monies to you? Consider the following:

700 Merrill Lynch employees received 1 million dollar bonuses, earlier than scheduled, just prior to the Bank of America buying them out.

Wells Fargo Fargo, an institution that received 25 million in bailout monies from the US taxpayer, was forced to reconsider their plan of flying dozens of its top mortgage officers to Las Vegas for a corporate junket. Wells has booked 12 nights at the exclusive Wynn Las Vegas and its new sister hotel, the Encore Las Vegas, according to a Wynn spokeswoman. The mortgage broker conference is an annual event that is known to be very lavish. Previous junkets have included helicopter rides and wine tastings. One year, the company paid for a private concert by Jimmy Buffett in the Bahamas for more than 1,000 employees and guests.

Northern Trust Bank, based out of Chicago, accepted 1.6 billion in bailout money and turned around and laid off 450 workers.

This past week they threw a party in Beverly Hills and flew hundreds of employees and clients out to Beverly Hills. The bank even went so far as to pick up the tab for the price of the lodging

Employees and clients enjoyed watching the band Chicago play at the Ritz. On Thursday they enjoyed the band Earth, Wind and Fire play at a private airport hanger in Santa Monica. The party concluded on Friday with a performance by Sheryl Crow. I wonder how many tellers, janitors and book keepers would have been still employed by they bank if they had chosen to for go the expensive festivities??!!

AIG, American International Group, found itself in hot water last year after spending nearly half a million dollars on a spa junket for executives barely a week after receiving $85 billion in a government bailout.

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Technorati Tags: American International Group, Bank of America, Banking Abuses, Banking Bailout, Stimulus, wells fargo

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