AIG made reckless bets that nearly crashed our entire economy.
Beginning in 2008, the government poured billions of your taxpayer dollars into the insurance giant to save it from bankruptcy after it gambled on mortgage-backed securities. And the bailout worked — earlier this year, AIG reported making billions in profit.
But AIG has a funny way of showing its gratitude. This morning, reports indicated that AIG is considering joining a lawsuit against the federal government because the terms of the bailout weren’t generous enough. Can you believe it?
AIG should thank American taxpayers for their help — not bite the hand that fed them.
The story gets even worse: The government is still bailing out AIG. Right now this profitable insurance giant is getting special tax breaks to give it an advantage and boost its bottom line.
Every time AIG files its taxes without paying a dime, it receives another payment in an ongoing, stealth bailout. Those special tax giveaways give AIG a competitive advantage over its competitors — all while inflating AIG’s profit numbers and compensation for its executives.
Washington shouldn’t keep giving special breaks to giant corporations while hard-working middle class families get stuck paying the bill — especially corporations that sucked up billions of dollars in bailouts after nearly crashing our economy.
Everyone should have to play by the same rules and pay their fair share — even giant insurance companies. That’s what I believed when I was chair of the Congressional Oversight Panel with oversight on the bank bailout, and that’s what I still believe now.