AIG Bonuses, "Counterparty" Payments Pissing Everyone Off (Updated)
At TPM former Labor Secretary Robert Reich bluntly states that "This sordid story of government helplessness in the face of massive taxpayer commitments illustrates better than anything to date why the government should take over any institution that's 'too big to fail' and which has cost taxpayers dearly. Such institutions are no longer within the capitalist system because they are no longer accountable to the market." If Treasury can't get the money back, Reich says, that shows "AIG is not even accountable to the government. That means AIG's executives -- using $170 billion of our money, so far -- are accountable to no one."
*Update: We should point out that Cuomo is the only one of this bunch to actually threaten AIG ("If you do not provide this information by 4:00 pm (2000 GMT) today, we will issue subpoenas and seek, if necessary, to enforce compliance in court"). We'll see if, when the hour strikes, the streets are deserted and someone starts playing "Do Not Forsake Me Oh My Darlin'." Update 2: The subpoenas have been issued.