Fourth Taxpayer Bailout of Offshore Corporation AIG

Bailed-Out Firms Have Tax Havens, GAO Finds

Most of America’s largest publicly traded corporations — including several that are receiving billions of dollars from U.S. taxpayers to finance their recovery — have set up offshore operations that could help them avoid paying U.S. taxes on their profits, a government study released yesterday found.

American International Group, Bank of America, Citigroup and Morgan Stanley are among the companies that are getting bailed out by U.S. taxpayers while having subsidiaries in locations where they can avoid paying U.S. taxes, according to the Government Accountability Office.

Of the 100 largest public companies, 83 do business in tax-haven hotspots like the Cayman Islands, Bermuda and the British Virgin Islands, where they can move their income into tax-free accounts. Full Story

AIG Receivers Billions More

The insurance giant AIG blew through $189,000 a minute last year despite their $150 billion bailout. If AIG is such a money drain, why did the fed hand out another $30 billion? Nancy Cordes reports.

After AIG’s first bailout execs had a massive party:

AIG Bailout Watch: Another Wasteful Spa Weekend

Jim Rogers: Let AIG Go Bankrupt or USA Finished

“I think it’s astonishing, they’re ruining the US economy, they’re ruining the US government, they’re ruining the US central bank and they’re ruining the US dollar,” he said.

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4 responses to “Fourth Taxpayer Bailout of Offshore Corporation AIG

  1. I would like to float a proposal for an economic stimulus plan past you for your consideration. The basics of the idea are in an article at http://tinyurl.com/dknr3c . Please review this article and let me know what you think. This will be the basis for a more in depth paper on the concept.

    Thank you for assisting with this project.

    Robert K. Minniti, CPA, CFE, Cr.FA, CFF, MBA

  2. Excuse me Barbara but I want to leave another comment. I’m occupied now in something, but shortly I will be ready to post again.

    I think the media almost sanctify the key players (the “good cops”) of capitalism, the free enterprise, in so way that people let them operate without restrains (or a “judge”).

    But they are human with virtues and equally defects (too much ambitious or greedy… for e.g.), the very reason why they have to be regulated before monopolize and dry-out “the Treasury”.

    Keep the excellent work!

    Regards,
    Analyzei

  3. Robert — I’ve read your proposal; it makes logical sense (unlike the government’s bailouts that continue to ‘throw good money after bad’, but the question is how much of a dent would it make in a collapsing economy?

    Mortgage loans at a four percent interest rate sounds like a reasonable plan to me, though I’m more concerned with employment, with bringing back outsourced jobs. Without decent paying jobs the housing market will continue to weaken.

    The other concern is financing farmers. If they can’t get loans to grow food, we don’t eat.

  4. Analyzei – yes, there is a rewarding of those who are looting the country. The question is for how much longer and where will it end.

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