85 billion dollar bailout in 2008 Concerned about collapse of the economy Now up to 180 billion dollars Tax payers money Money amount continues to increase 1.6 trillion dollar worth of lethal credit default swaps
Declare Bankruptcy Chapter 11 Not nearly as bad as it is now Fear of collapse The bailout is said to be failing Spending Money the Government and tax payers do not have
Said bankruptcy would have not created economic havoc Current plan will not work Tax payers will only receive pennies on the dollar Company should be rebuilt So taxpayers can eventually be repaid
Short run The $85 Billion bailout Quick fix Long Run Let the company fail Let other companies pick up the pieces Eventually would help the Economy
Gross, Daniel. “Against All Odds.” Newsweek 155. 12 (2010): 25. Academic Search Premier. Web. Dash, Eric. “U.S. to sell 27% stake in Citigroup This Year.” New York Times, 30 Mar 2010: 3. Academic Search Premier. Web. 20 Nov 2011. “Obama: AIG Can’t Justify ‘Outrage’ of Bonuses.” Youtube.com. 16 Mar 2009 http://www.youtube.com/watch?v=RLRCdmeepwc&feature=fvsr. http://www.youtube.com/watch?v=RLRCdmeepwc&feature=fvsr Carty, Sharon Silke. “Ford Profits From Auto Bailouts.” USA Today n.d.: Academic Search Premier. Web. 20 Nov 2011.
http://online.wsj.com/article/SB122156561931242905.html, U.S. to Take Over AIG in $85 Billion Bailout, Matthew Karnitsching, Deborah Solomon, Liam Pleven, Jon E. Hilsenrath, September 1, 2008 http://online.wsj.com/article/SB122156561931242905.html http://www.thenation.com/article/153929/aig-bailout- scandal, AIG Bailout Scandal, William Greider, August 6, 2010 http://www.thenation.com/article/153929/aig-bailout- scandal http://www.cbsnews.com/stories/2008/09/16/business/mai n4453942.shtml, U.S. Announces $85 Billion Bailout of AIG, April 17, 2009 http://www.cbsnews.com/stories/2008/09/16/business/mai n4453942.shtml http://abcnews.go.com/Politics/Business/story?id=7237477 &page=1, Greenberg Says AIG Bailout was Avoidable, Matthew Jaffe, April 2, 2009 http://abcnews.go.com/Politics/Business/story?id=7237477 &page=1