You have a "horrible, horrible, horrible feeling this is going to end badly...?" That's cuz it's been rotten to the core from the get-go...

aig has rapidly become a symbol of all that is wrong with both our financial system and our government, and it's now a litmus test for the obama administration... if this brand-new president, his treasury secretary, and his advisors want to retain a shred of credibility for their "change" agenda, they've got to find a way to deal with this effectively and show the american people that they aren't just funding a give-away to the already super-rich, cuz that's for goddam sure what it looks like...

Attorneys working for the Fed had been examining the matter for months and determined that the retention payments couldn't be touched because AIG would face costly lawsuits and be subject to penalties from states and foreign governments. Administration officials said over the weekend that they agreed with that assessment.

check this...

A tidal wave of public outrage over bonus payments swamped American International Group yesterday. Hired guards stood watch outside the suburban Connecticut offices of AIG Financial Products, the division whose exotic derivatives brought the insurance giant to the brink of collapse last year. Inside, death threats and angry letters flooded e-mail inboxes. Irate callers lit up the phone lines. Senior managers submitted their resignations. Some employees didn't show up at all.

"It's a mob effect," one senior executive said. "It's putting people's lives in danger."

Politicians and the public spent yesterday demanding that AIG rescind payouts that they said rewarded recklessness and greed at a company being bailed out with $170 billion in taxpayer funds. But company officials contend that the uproar is scaring away the very employees who understand AIG Financial Products' complex trades and who are trying to dismantle the division before it further endangers the world's economy.

"It's going to blow up," said a senior Financial Products manager, who spoke on condition of anonymity because he was not authorized to speak for the company. "I have a horrible, horrible, horrible feeling that this is going to end badly."

do i smell a domestic military deployment in the air...? (see previous posts here, here, and here...)

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