Are any of us surprised about this, the organizations involved, or that it is our money that is being used?
NEW YORK (Reuters) – Wall Street banks and lawyers could collect nearly $1 billion in fees from the Federal Reserve Bank of New York and American International Group Inc to help manage and break apart the insurer, The Wall Street Journal said on Wednesday, citing its own analysis.
Morgan Stanley could collect as much as $250 million, the newspaper said, citing banking experts and documents released by the New York Fed.
Bank of America Corp, private equity firm Blackstone Group LP, law firm Davis Polk & Wardwell LLP, accounting firm Ernst & Young, Goldman Sachs Group Inc and JPMorgan Chase & Co are among others that have or could get big paydays for helping dismantle AIG, the newspaper said.
To calculate dollar amounts, the newspaper said it tallied estimated fees for transactions already announced and those AIG is considering, planning or may be forced to pursue. It said it obtained assistance from Freeman & Co, Thomson Reuters and documents provided by the New York Fed.
According to the newspaper, the situation creates potential conflicts of interest in oversight by causing the government to employ many companies it regulates. (emphasis mine)
Imagine that? I am pretty sure, (I would have to go back and look at screenshots), but every single one of the emphasised names has been on this little tiny blog out in left field when I wrote about The Fed and the Pilgrims.
First they used our money to save these guys and now they are using the money to pay fines and reward each other.
I hate capitalism on steriods…