No More Broken Promises
There has been a lot of talk around the Movenbank water cooler lately about AIG’s potential lawsuit against Uncle Sam for the infamous 2008 financial sector bailout.
And, quite frankly – we’ve had enough.
- We’re tired of the fact that mismanagement continues to be rewarded in the financial sector.
- We’re tired of seeing our fellow Americans hurting.
- We’re tired of the same old tune.
- We’re tired of all the broken promises to you.
The Story So Far
In the wake of the 2008 financial crisis, Washington came to the rescue of the financial sector and bailed out insurance giant American International Group (AIG) to the tune of $182 billion. For comparison that is one and half times our annual federal spending on education.
Now, after nearly four years of selling off shares in order to repay these funds, AIG is considering a bold and controversial move – joining ex-CEO Hank Greenberg’s lawsuit suing the American government.
This is the very same CEO ousted in 2005 because of ongoing criminal investigations by the NY State Attorney General and who has (so far) paid $15 million in fines for accounting fraud. Mr. Greenberg accuses Washington of using the funds as a ‘backdoor’ bailout for Wall Street giants like Goldman Sachs, and shortchanging investors in the process by forcing AIG to accept unfavorable terms.
How Did They Get in This Mess?
Let’s revisit exactly what happened. AIG promised other financial institutions that if certain things happened (like foreclosure rates rising) they would pay them money. In exchange AIG was paid lots of money by these companies and reported record earnings for years. Meanwhile AIG never actually made sure that it could fulfill on these promises.
So when faced with a bankruptcy that would have wiped out their shareholders and thrown the financial services industry in turmoil, the US Government decided to step in and offer AIG a lifeline. In exchange for taxpayers risking huge sums of money to save AIG, the US government got 80% of the company, making it one of the largest company buyouts in the history of buyouts.
And this was for a failing company – not a highly sought-after profitable enterprise.
Now the patient who almost died because they crashed while driving drunk and without a seatbelt is suing the doctor for providing emergency care and sending them the bill. In fact, they want taxpayers pay for the ‘privilege’ of saving them from their greed-fueled disaster.
A company that couldn’t keep promises to its own customers is now going back on the promises it made to America.
Our Promise to You
This is beyond ridiculous.
Banks expect accountability from you, but you are due just as much accountability from them.
How can institutions like AIG ever regain the people’s trust and respect when they cannot take responsibility for their own actions? How can they keep asking for more and yet think Americans should expect less and less?
That’s just not right. In fact, you should expect more. Much more.
We have taken an oath to support your financial health that informs every single aspect of our business. And we believe that you have every right to hold us accountable – because we know that the most important thing you have entrusted to us is not your money, but your future. And that is not a responsibility that we will ever take lightly.
We keep our promises so you can keep yours.
It’s time for better, America. It’s time to expect more.
What do you think?