Bob Diamond and the Treasury Select Committee

[AtW]

There's an argument that they invested in institutions they knew couldn't fail.

The fact that they had to be bailed out means they failed - so banks who insured in them also failed, but did not pay the price.

[sasguru]

Hmmm. Wonder what my bonus will be this year. Should have recovered somewhat from the piss poor £50K of last year.

[Freamon]

Hold the phone. AIG bail out was not exchanged for shares like UK banks, it was just given free money by the US.

Precisely, so the govt has no recourse or right to expect any special behaviour from the banks, as is the case with BARC.

If anyone should be getting angry, it's the taxpayers, with the govt, for carrying out the bailout in such a way that the taxpayer got nothing in return.

The govt feigning anger at the banks is just a diversionary tactic.

[AtW]

"Barclays is one of the single largest beneficiaries of the US government's bailout of AIG, it emerged today. It received about £6 billion, or the equivalent of the whole of the British bank's profits for last year."

"Of those, Goldman Sachs, whose former executive Hank Paulson was Treasury Secretary at the time of the bailout, was the single largest recipient of funds from AIG with $12.9 billion.

But, to the consternation of many American politicians, much of the money has crossed the Atlantic to settle AIG's bad bets with European banks.

Deutsche Bank and Société Société Générale were the largest recipients with $12 billion each while Barclays received $8.5 billion."

Source: Barclays got £6bn of insurer's bailout cash | Business

[Alf W]

"Barclays is one of the single largest beneficiaries of the US government's bailout of AIG, it emerged today. It received about £6 billion, or the equivalent of the whole of the British bank's profits for last year."

"Of those, Goldman Sachs, whose former executive Hank Paulson was Treasury Secretary at the time of the bailout, was the single largest recipient of funds from AIG with $12.9 billion.

But, to the consternation of many American politicians, much of the money has crossed the Atlantic to settle AIG's bad bets with European banks.

Deutsche Bank and Société Société Générale were the largest recipients with $12 billion each while Barclays received $8.5 billion."

Source: Barclays got £6bn of insurer's bailout cash | Business

and?

Barclays will have paid to insure those assets down the years. AIG should have been in a position to honour its liabilities.

[AtW]

AIG should have been in a position to honour its liabilities.

They were not, so they would have failed utterly and caused chain reaction, that's why they bailed out.

The only thing I don't get is how US Govt did not refuse to honour any non-US banks obligations, ie Barclays - they should have put AIG through bankrupcy procedure and selectively buy out at discounted prices all obligations - much higher discount for foreign banks.

[Freamon]

But, to the consternation of many American politicians, much of the money has crossed the Atlantic to settle AIG's bad bets with European banks.

Ironically, the branch of AIG that sold most of these swaps (AIGFP) was based in London at 1 Curzon St.

[AtW]

Ironically, the branch of AIG that sold most of these swaps (AIGFP) was based in London at 1 Curzon St.

A Curzon on both of their houses then

[RichardCranium]

A Curzon on both of their houses then