Bachus: AIG Stiffed Small U.S. Institutions, While Paying Off Foreign Banks in Full | Talking Points Memo

Rep. Spencer Bachus (R-AL) just raised a new objection to the AIG counterparty payments–specifically that while AIG used government money to pay off their CDS obligations dollar-for-dollar to major (sometimes foreign) financial institutions, it repaid smaller U.S. institutions that made secured loans to AIG subsidiaries at a rate of only about 20 to 30 cents on the dollar.

This is a companion discussion topic for the original entry at